Mortgage, Real Estate and Debt Information

As age catches up with seniors and their retirement gross nearer, seniors should start thinking about planning for the future. There is no doubt, some post retirement benefits will help seniors, but the amount of money can be inadequate for some seniors to meet their financial expenses for each month. Unless the senior is receiving a sizable amount of money for their retirement benefits, it is unlikely they have the funds for a comfortable retirement that would enable them to travel and enjoy their silver years. All these financial requirements can easily be taken care of my means of a reverse mortgage.

Many people think of ways in which they can add substantial amounts of money to their retirement so they can live the life they have always dreamed about. Most seniors have seen ads of elderly couples traveling to exotic foreign destinations beamed across the TV screen and they too want to join in the fun and enjoy life. There is a way to take those trips and have extra money without many hassles; the parties involved just need to be at least 62 years of age to apply for a reverse mortgage that can provide the senior with financial liberty by using their home equity.

If you are a senior citizen and are above 62 years of age and have a large amount of equity in your home, a reverse mortgage can assists you in your post retirement dreams. After you receive the loan from the lender, you will not have to pay back the loan as long as you live in your home. However, if you sell your home, you will have to repay the loan. The money you receive from the loan is tax free and you retain ownership of your home. In case of your death, the person who inherits the house will need the loan if they decide to keep the house. A reverse mortgage is not dependent on your health, income or even credit history.

Many seniors may decide to use a reverse mortgage for something other than a dream vacation. Seniors may decide to use the funds towards paying off their current mortgage, some may decide to use the money for health care, or even daily living expenses. The fact that a reverse mortgage allows seniors to have their own financial security and independence makes it a very popular option. Most people view a reverse mortgage as a need, meaning they will only do a reverse mortgage because they need the money not because they want the money for trips.

A reverse mortgage can be quite expensive because the cost of the loan includes credit reporting charges as well as appraisal and initiation charges, inspection charges etc. add them all together they can add up to a substantial amount which is deducted from the amount you will receive. If you do not properly manage your cash, you should seek professional to help manage the money you receive from the reverse mortgage in combination with the rest of your funds.

It happens all the time. Debt collectors try to collect on debts that consumers have no knowledge of or never owed in the first place. So, what do you do when a bill collector demands payment in full on a debt that you never knew existed? You need to request a validation of debt.

A validation of debt is a request for proof that the collection agency that is contacting you owns the debt/or has been assigned the right to collect the debt on behalf of an original creditor. A validation of debt also includes a complete payment history, starting with the original creditor, and a copy of the original signed loan agreement or credit card application. This may be a debt you really owe or possibly a debt that was sent to collections by mistake. Either way, debt collectors can be very unapproachable. It is important to remember that you also have rights. According to the Fair Debt Collection Practices Act, Paragraph 809, - Validation of Debts:

"(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing:

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;

(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and

(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.

(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

The information presented in this article only covers some of the more important aspects of debt validation. It is important to do your research and fully understand your rights and obligations prior to attempting any type of communication with a debt collector.