Welcome to my http://reversemortgageweblog.WordPress.com. This is the first post.
There are a lot of misconceptions out their in the marketplace on reverse mortgages. Many peoples perception is based on the original private funded reverse mortgages that were available 10-20 years ago.
The new generation of Reverse Mortgages are HUD guaranteed HECM mortgages. These clearly are a horse of a different color. Although they are not available to everyone and are not suitable for everyone thay can be a very helpful product for the right client and in the right situation. All owners on the loan and title must be age 62 or over.
Just a personal example. I had an 84 year old client in St Louis, MO with late stage Alzheimer Disease. She could not be left on her own even for an hour. Her daughter was a full time care giver and couldn’t work to earn a living because she was taking care of her mother. They basically were trying to live on Social Security as their only income. I can only imagine how difficult that would be. They were behind on their condo fee’s and behind on taxes. The Bank and Condo association were beginning foreclosure actions.
Let me summarize what a Reverse Mortgage accomplished.
1. It stopped the foreclosure process after I talked to the Condo Association and bank.
2. It paid off the back taxes and back condo fees.
3. It stopped mortgage payments immediately improving their cash flow to help pay for medical expenses.
4. It left a cash reserve line of credit to pay for future taxes and condo fees
5. It let her stay in her home which is where she wanted to be.
I have not been able to find any bad results in this case! It isn’t a perfect alternative but it was nearly perfect for them. Up front costs are minimal and usually are less than $500. There are some internal costs amortized into the loan amount. I would be happy to discuss how a reverse mortgage might be right for you.
Hope to see you in future posts. How can we help you?
financial-services@live.com
Tags: Finance, Foreclosure, Foreclosure Alternatives, HUD HECM Loans, Money, Reverse Mortgage
