As well, loans under these programs are without recourse. This means that lenders can not attach other assets of borrowers or their heirs in event that reverse mortgage debt exceeds property value.

On a another note, if home is sold and sales proceeds exceed amount owed on reverse mortgage, excess money goes to you or your estate.

There will always be some concern with homeowners who would like to leave an inheritance for their children and home is to be that cash inheritance.

Note:

As with all loans, be careful not to default on regular or common charges, such as property tax, insurance, utilities etc, as these could all lead to loan/mortgage being reclaimed early (foreclosed).

Typically, lender will have an option built in to contract to increase your debt by paying these charges on your behalf, should you default, and this is not an option you want them to exercise, as you will then start paying interest on those charges too!

Reverse mortgages can be very useful, but treat carefully as they can also have a sting in their tail.

Keep an eye on outstanding balance every month, versus value of your home for peace of mind.

And as with most major decisions, speak to an expert who knows your situation and long term plans before applying for a reverse mortgage. As a matter of fact, in U.S., mandatory counselling is required prior to applying for a reverse mortgage. An approved counsellor will educate you about reverse mortgages and determine whether this is your best option. Then, given your particular situation assist you in determining which reverse mortgage product best suits your needs. The U.S. Department of Housing and Urban Development has a list of approved counselling agencies posted online at Home Equity Conversion Mortgages Resources.

AARP has also entered picture as a major information source for reverse mortgages. (www.aarp.org/revmort) They have a guide (including a nifty calculator) that can help you figure out if a reverse mortgage is right for you.

For Canadians: - Shop Carefully!

Although home equity conversion products (reverse mortgages) are widely available in US, Canadian homeowners have a more limited selection. You can check out Canadian Home Income Plan.Canadian Home Income Plan.

Until recently in order for a consumer to view their credit report they had to order a copy from one of three main credit bureaus and pay a small fee. However new laws now allow for 1 free credit report every year to any consumer that wishes to see their credit report.

The power of your credit report is incredible. Even if you have built up a positive credit report any missed payment no matter how small amount can result in a denial of credit. The best advice most credit can give is to stay current on your entire monthly financial or reoccurring obligations and don’t overextend yourself financially.

Hopefully this quick article answered a few of your questions regarding your credit report. More detailed information can be found in various locations throughout Internet. Don’t forget to request your free copy of your credit report so you can see where you stand in eyes of future potential creditors.