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Q: Can you tell me anything about the reverse mortgage? They advertise this on TV quite a bit. My home is paid off, so I called to see how much money I could get. They were supposed to send some information, but I haven't received any. I was wondering if you have to put down your deed or send them something. - M.H., Parkton
A: Reverse mortgages are a sort of home equity loan available to people aged 62 and up.
They allow seniors to tap the equity they've built up in their homes without having to leave those homes. Seniors can take their payments through lump sums or a line of home equity. The loans are generally repaid when the homeowner dies, moves or sells the property.
The homeowner does retain title during the loan - along with responsibility for property taxes, insurance, utilities, maintenance and those sorts of costs.
It can sound alluring - and sometimes be a good option.
But don't commit to a reverse mortgage without first thoroughly researching the offer and thinking about what it would mean in various scenarios.
A recent New York Times story noted that many big lenders have exited the reverse mortgage market since the financial crisis, and smaller mortgage brokers, including former subprime lenders, have poured in. The rate of reverse mortgage defaults is at a record high, it said - 9.4 percent of all reverse mortgage loans.
The story said some lenders aggressively pitch the loans to seniors who can't afford the associated fees or their property taxes and maintenance.
It said some people faced foreclosure and eviction because they were too young to be included on the reverse mortgage documents when it was obtained by an older spouse. When the older spouse died, they lost their rights to the home.
The Federal Trade Commission notes that reverse mortgages can use up all or some of the equity in your home and leave fewer assets for you and your heirs.
So be careful. To learn more about reverse mortgages, you can talk to a state-certified housing counselor at the Consumer Credit Counseling Service of Fayetteville. The number is 323-3192.
You can also go online to ftc.gov/bcp/edu/pubs/ consumer/homes/rea13.shtm
Q: Who do you contact to have a satellite dish removed from your property? - I.K., Fayetteville
A: Skynet Satellite Systems will do that, though it'll cost you - probably between $50 and $75. Its number is 484-7955.
Live Wire seeks to answer questions of general interest and consumer topics within two weeks. Initials are used to identify questioners when names are given. Contact Live Wire via Live Wire's Facebook page, at livewire@fayobserver.com or at 486-3516.
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