RESOURCES

THE RESOURCE CENTER

Program Manager: Sue • Caregiver Support Coordinator: Emily • Specialists: Joyce & Marla • Intake Specialist: Nancy For more information, please call 259-5212

WHAT IS A REVERSE MORTGAGE?

A Reverse Mortgage is a kind of home mortgage that allows the borrower to convert their home’s equity into cash without having to repay the loan while they are living in the home. The most common Reverse Mortgage is the Home Equity Conversion Mortgage or HECM. This loan is insured by FHA. There are multiple options for receiving payments, with no limitations on how the money can be used. A HECM can be used to pay off a small existing mortgage, for home improvements, travel or any other living expenses. To qualify you must:

• Be 62 years old or older • Live in your home most of the year • Complete a HECM counseling session with HUD approved HECM counselor • Have a single detached home, townhouse or 2-4 single family units with one unit occupied by borrower. Some manufactured homes and condominiums may meet HUD/FHA guidelines

As with all mortgages, a lien will be placed against your home which will secure the HECM loan, but the loan will be repaid only when the home is sold, the borrowers no longer live in the home, or the borrowers fail to pay property taxes and insurance. A HECM loan can have considerable closing costs and may not be a good option for everyone. Unfortunately, Reverse Mortgage can be a vehicle for fraud and scams. Some common scams are:

• Charging for information about how Reverse Mortgages work, which you can get free for the HUD website and reputable Mortgage lenders. • Requiring you to use the funds you receive to purchase investments or annuities • Getting talked into a Reverse

Mortgage to pay for home improvements you may not want or need.

The Resource Center staff can help you learn more about a Reverse Mortgage and refer you to HUD approved lenders if you decide to explore this option further.

ARE YOU CONCERNED ABOUT A LOVED ONE’S ABILITY TO MAKE FINANCIAL DECISION?

Is your loved one a frequent victim of scams? Peter Lichenberg, Ph.D. a geriatric neuropsychologist and his team at Wayne State University in Detroit have created a Financial Vulnerability Assessment that uses a rating scale to determine if an individual understands the financial decisions they have made. It measures Intellectual factors and Contextual factors and can help uncover if the person is currently being financially exploited. You can get additional information about this Assessment at https:// www.olderadultnestegg.com/for-familyand-friends/. Even though this is a dot. com website it is affiliated with Wayne State University, a public University.

MONTANA LEGAL SERVICE DEVELOPER PROGRAMS

The State of Montana Legal Services Developer in the Office on Aging in Helena provides elder law training and resources for seniors, family members and social outreach workers. The program also develops pro bono and local legal services referrals, training materials and telephone assistance to seniors on related matters. They can also provide assistance and guidance regarding important end of life documents like Powers of Attorney, Advance Directives, and Transfer on Death Deeds.

The Legal Services Developer can be contacted by calling (406)444-7787. This program serves the entire state so please understand you may need to leave a message, so they can call you back as they are able.

THE RESOURCE CENTER IS BEGINNING IN-PERSON NEW TO MEDICARE PRESENTATIONS AGAIN!

Our in-person attendance is limited to 20 attendees, so we will be doing 2 presentation each month on the:

• 1st Tuesday of the month at the Heights Alliance Office at 935 Lake Elmo at Noon

• 3rd Tuesday of the month at the Main Alliance Office at 1505 Ave D at Noon. This presentation will also be streamed on Facebook Live. In June, we will hold the

Main office presentation on June 29th due to staffing issues.

You MUST have a reservation to attend. You can make your reservation at 259-5212 between 9am and 3pm.

Covid protocols will be in place with face masks required. You can also attend the presentation by conference call. You will be given the conference call instructions when you place your conference call reservation.