Reverse Mortgage Information

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Very Interesting Article on Boomers/Older Americans & Debt

I just read a very sobering article from the AARP Bulletin about Americans over 55 and debt.  I know that many senior homeowners I work with daily have 25 plus years to pay on their current mortgage and no plan of how they are going to pay it off.  In cases like that, a reverse mortgage may make good financial sense if the homeowner wants to remain in their home with no mortgage payments.  Homeowners should alwasy be aware though that they will continue to be responsible for payment of property taxes and homeowners insurance...

"A generation ago, many Americans worked toward paying off their mortgages and retiring with little, if any, debt. Today, a growing percentage of older workers are heading in the opposition direction. "  See link to AARP on my sidebar.

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By Deborah Nance

NMLS#202003

Your Local Southern California Reverse Mortgage Professional

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Equal Housing Lender

iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin. 

Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.

Comment balloon 3 commentsDeborah Nance • October 23 2009 11:04PM

Comments

Curious to know how this all works for folks whose value has dropped and have lost most or all of their equity?

Posted by Franklin & Brentwood, TN Homes Mike Nastri - Rodney Kennedy, It matters to us as much as it matters to you. (Keller Williams Realty) over 8 years ago

This is indeed a sobering analysis and it looks like we will see the fall out for years to come.

Posted by Palm Properties (Palm Properties) over 8 years ago

Mike, you bring up a very good point.  When a senior homeowner is upside down on their home, we usually cannot help them.  On occasion though, existing lenders have been willing to do a "short-payoff" reverse mortgage refinance by cooperating with the new reverse mortgage lender to refinance and thus allow the senior to remain in their home with no more mortgage payments. (I think they are worried about the "Bank Forecloses on Senior Citizen" headlines)   It's not easy, but has been done.  Here is a link to an article about a specialty title company, Premier Reverse Closings,  and how they and a reverse mortgage professional helped to save a homeowner from foreclosure. 

<ahref="http://www.reversemortgageadviser.com/blog/news/revese-mortgage-saves-man-foreclosure/" >Revese Mortgage Saves a Man from Foreclosure</a>

However, there are many seniors who DO have adequate equity and still struggle to make mortgage payments and are on the verge of default.  If they want to stay in their home, a reverse can make excellent sense for them and really give them peace of mind.

Thank you for reading and responding to my posts.  Active Rain rocks!

Posted by Deborah Nance, Southern California , Reverse Mortgage Specialist (Orange County, Corona, Riverside, Los Angeles) over 8 years ago

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