“This was originally contemplated as something you could draw money from over a long period of time, as a way of supplementing your income or providing income when you had not others. Now a lot of people are looking to reverse mortgages as a quick fix,” said David Certner of AARP.

About 9.5 percent of the 775,000 reverse mortgages outstanding are delinquent, far higher than the rate on regular mortgage loans. While lenders are pushing them aggressively, fewer are being made today, due to the drop in home values. Advocates say they can be a valuable tool, if used correctly, and that there are ample safeguards.

(Read More: Rising Mortgage Rates Amid Fed Fears)

“The reverse mortgage, unlike any other financial service in the United States, requires every single borrower, prospective borrower to go before an independent third party reverse mortgage counselor at a HUD-approved, HUD-funded counseling agency prior to even making an application for the loan,” claimed Bell. “So where somebody is coming off title would be in a discussion.”

The Consumer Financial Protection Bureau is now looking at new rules to protect consumers, which could include stricter supervision of lenders and more transparency for borrowers.

“It’s a balancing issue, you want to make sure that people have access to credit or the help they need or even those who may need a reverse mortgage, but you also want to make sure that one, people not getting reverse mortgage when it’s not the right product for them and two that when they are getting the product they are getting the best one that’s available for them,” explained Certner.

Those changes could go a long way to help seniors benefit from the loans, but they would likely be too late for Robert Bennett.

“I guess I could make it somewhere else, but I would walk away empty.”

—By CNBC’s Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC

Questions? Comments? RealtyCheck@cnbc.com

Article source: http://www.cnbc.com/id/100788816

“This was originally contemplated as something you could draw money from over a long period of time, as a way of supplementing your income or providing income when you had not others. Now a lot of people are looking to reverse mortgages as a quick fix,” said David Certner of AARP.

About 9.5 percent of the 775,000 reverse mortgages outstanding are delinquent, far higher than the rate on regular mortgage loans. While lenders are pushing them aggressively, fewer are being made today, due to the drop in home values. Advocates say they can be a valuable tool, if used correctly, and that there are ample safeguards.

(Read More: Rising Mortgage Rates Amid Fed Fears)

“The reverse mortgage, unlike any other financial service in the United States, requires every single borrower, prospective borrower to go before an independent third party reverse mortgage counselor at a HUD-approved, HUD-funded counseling agency prior to even making an application for the loan,” claimed Bell. “So where somebody is coming off title would be in a discussion.”

The Consumer Financial Protection Bureau is now looking at new rules to protect consumers, which could include stricter supervision of lenders and more transparency for borrowers.

“It’s a balancing issue, you want to make sure that people have access to credit or the help they need or even those who may need a reverse mortgage, but you also want to make sure that one, people not getting reverse mortgage when it’s not the right product for them and two that when they are getting the product they are getting the best one that’s available for them,” explained Certner.

Those changes could go a long way to help seniors benefit from the loans, but they would likely be too late for Robert Bennett.

“I guess I could make it somewhere else, but I would walk away empty.”

—By CNBC’s Diana Olick; Follow her on Twitter @Diana_Olick or on Facebook at facebook.com/DianaOlickCNBC

Questions? Comments? RealtyCheck@cnbc.com

Article source: http://www.cnbc.com/id/100788816

SAN FRANCISCO, April 29, 2013 /PRNewswire/ – LessThan6Percent (http://www.lessthan6percent.com), the online marketplace where home sellers can compare commissions and marketing plans from local real estate agents, is exiting its beta launch in the San Francisco Bay Area and expanding into Southern California. Founded in late 2012 by serial entrepreneur Simon Ru, LessThan6Percent provides home sellers a convenient platform to streamline the process of finding the best agents to represent their home.

“The problem home sellers face is that there are thousands of agents in any given market,” says Ru. “It is difficult for home sellers to compare agents to find the best match. They don’t know what questions to ask, what to look for in a marketing proposal, or how to start the awkward conversation of negotiating services commissions.” This is where LessThan6Percent steps in.

LessThan6Percent differs from traditional agent-matching service such as Trulia (http://www.trulia.com/) and Zillow (http://www.zillow.com) by matching sellers to proposals submitted by agents rather than agents’ profiles. Instead of directing sellers to call agents’ numbers on a directory, LessThan6Percent transforms the matching process by having agents compete for sellers’ business. With a click of a button, home sellers would know exactly what services they are going to receive and how much they would cost. This level of transparency is unparalleled in the real estate industry.  

LessThan6Percent Benefits Home Sellers

When using LessThan6Percent, sellers are able to request proposals anonymously and review profiles that showcase agents’ marketing brochures, past transactions and social network reviews. A typical request will receive five proposals within two business days. Each proposal is personalized and includes answers to all the pertinent questions that a seller would typically ask when interviewing agents.  Sellers will be able to compare commission quotes, length of contract, and services such as number of open houses, staging, marketing and virtual tours that the agents are willing to offer.

Beyond quantitative metrics and stats, agents are also given the opportunity to provide a customized response on how they can help the seller obtain a higher price and how they are the best agent for the seller and the property.  This information adds depth to an agent’s profile and helps the seller decide on the appropriate agents to interview and hire.

“When agents compete for your business, the opportunity to get a competitive commission quote comes naturally,” says Ru. On top of the commission savings, LessThan6Percent also offers home sellers a $500 bonus rebate at close of escrow.    

LessThan6Percent Also Benefits Agents

While home sellers enjoy convenience, selection and savings when using LessThan6Percent, real estate agents will enjoy a new avenue to connect with sellers they would not have met otherwise. By gathering and analyzing massive amounts of data from credit bureaus and third-party data sources, LessThan6Percent identifies potential home sellers and brings them to the site. LessThan6Percent’s team interviews and identifies the needs of each seller so that agents can create tailor-made proposals. Because the proposals and commission quotes are personalized and only viewable by the seller, LessThan6Percent provides a safe platform for full-service agents to compete with discount brokerages such as Redfin (http://www.redfin.com/) in a way that was not previously available.  

Since piloting the beta in February 2013, LessThan6Percent has established partnerships with over 300 real estate agents in the San Francisco Bay Area. Several of its partner agents are ranked in the Wall Street Journal as among the top 100 agents in the U.S.

About LessThan6Percent
Founded in November 2012 by serial entrepreneur Simon Ru and led by a team that has helped grow companies like EBay (http://www.ebay.com/) and Redfin, LessThan6Percent™ is a marketplace where home sellers can compare commission quotes and listing proposals from local real estate agents. To learn more about LessThan6Percent, please visit http://www.lessthan6percent.com

LessThan6Percent, Inc.
1001 Bayhill Drive, #294
San Bruno, CA 94066
(Office) 1-800-692-5010

SOURCE LessThan6Percent

RELATED LINKS
http://www.lessthan6percent.com

Article source: http://www.prnewswire.com/news-releases/lessthan6percent-revolutionizes-how-home-sellers-and-real-estate-agents-connect-205310341.html