JAY — On Tuesday evening, Oct. 16, local Realtor Kathleen Szostek will hold a class on “The Pluses and Pitfalls of a Reverse Mortgage” with RSU 73 Adult Education. The class will run from 6 to 7:30 p.m. at the Spruce Mountain Middle School. Call Adult Education at 897-6384 to register.

“Clearly a reverse mortgage isn’t for everyone,” Szostek said. “However, for some folks it is an amazing opportunity. Imagine buying with a reverse mortgage and never having to make a mortgage payment. Or never worrying about being kicked out of your home. Or obtaining one on your current home.

“Again, no mortgage payment is needed as long as you continue to live there and keep current on taxes and homeowners insurance. And if the real estate market tanks and the mortgage is more than the existing value? No problem. You don’t have to make up that difference. You are essentially insured for that,” she said.

The brief class is meant to clear up the misconceptions that abound regarding reverse mortgages.

“They’ve gotten a bad rap,” Szostek said.

“Today, some reverse mortgages are guaranteed by HUD, and that is the type to get. Contrary to a rampant myth, one does not ‘give their home over to the bank,'” Szostek said. Whether you purchase with a reverse mortgage or refinance an existing property, the deed is in the owner’s name, not the bank’s. One retains title just as one would with a conventional forward mortgage. And unlike other mortgages, the lender does not ask what your credit rating or income is.

Because reverse mortgages are still a little unusual, counseling (usually by phone) by a neutral, informed and trained third party is mandatory before one takes out a reverse mortgage. “The counseling is very important,” Szostek said. Some situations require thoughtful planning, such as when only one spouse is age-eligible for the reverse. Care must be taken to assess whether that route makes sense for the younger spouse.

Szostek is a Livermore Falls resident associated with The Maine Real Estate Network, 34 Center St., Auburn. She is a nine-year veteran of the real estate industry. Although she works with all ages, she specializes in the needs of those 50 and above.