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Reverse Mortgage To Foreclosure In Less Than Three Years
2009-09-11 17:34:00 Anyone who’s ever watched any late night television has seen those commercials for reverse mortgage. They are always touted by older celebrities claiming how safe these things are. For those who actually believe that there’s little risk to a reverse mortgage, here’s a cautionary tale from our faithful longtime correspondent in Tucson- M.R.: Recently I passed a vacant house with a NOTS posted on the front fence. I know the owner of this property — she’s an elderly lady who took out a reverse mortgage in 2006. The NOTS gave the amount, $285,500. Twist, in no way, even during the height of the bubble, was that place ever worth that much. Very few places in zip code 85705 are. Furthermore, the lady was known for feeding every stray cat in the area, and for allowing them into her house. You can just imagine what the place smelled like. After she got the reverse mortgage, she went on a truly baffling spending spree. We’re talking things lik...
By: HousingDoom
Who will pay back my reverse mortgage loan
2009-02-10 16:00:00 There is a gray area about reverse mortgages which probably scare some seniors from even taking it into consideration as a viable financial option. Once seniors realize that a reverse mortgage loan is a debt, one common question we receive is: When do you pay the loan back?
Regular Mortgage versus Reverse Mortgage: A Comparative Study
2008-11-28 16:41:00 Original Post on The Sun's Financial Diary Regular Mortgage versus Reverse Mortgage: A Comparative Study This article is written by mortgagespecialist, a member of mortgagefit.com. She has been writing on different mortgage related topics like refinancing, second mortgage, foreclosures, etc. A regular mortgage refers to that mortgage loan which you take in order to buy a home of ... Related posts:Reverse Mortgage Loan: Should You Apply for One?Which Mortgage is Right for You and WhyBank of America Introduces No Fee MortgageCardIt: Too Much for Paying My Mortgage with Credit CardsMortgage Refinance Made Easy
Reverse Mortgage will benefit seniors even more
2008-10-23 17:00:00 Great news for seniors who are looking into, or already have a reverse mortgage loan. For one, HECMS, or Home Equity Conversion Mortgages insured by the Department of Housing and Urban Development now have a common ceiling of $417,000 regardless of where the home is located.
Reverse Mortgage will benefit seniors even more
2008-10-23 17:00:00 Great news for seniors who are looking into, or already have a reverse mortgage loan. For one, HECMS, or Home Equity Conversion Mortgages insured by the Department of Housing and Urban Development now have a common ceiling of $417,000 regardless of where the home is located.
Seniors beware of reverse mortgage fraud
2008-10-07 17:00:00 Mortgage fraud has been an underlying cause of many good deals gone badly, and reverse mortgage fraud is no better.
Seniors beware of reverse mortgage fraud
2008-10-07 17:00:00 Mortgage fraud has been an underlying cause of many good deals gone badly, and reverse mortgage fraud is no better.
Have your own people when applying for a reverse mortgage
2008-08-11 17:00:00 When shopping for a reverse mortgage loan it is important to be fully aware of everything that is presented and also to choose your lender carefully. Some lenders stay tight-lipped and don?t fully disclose fees and terms.
Reverse Mortgage Advice
2008-08-11 17:00:00 Taking out a reverse mortgage is a serious financial decision and should be well thought out. If you or your parents have already taken the necessary steps to educate yourselves on reverse mortgages, talking to a financial planner you trust is the next step.
Are there any other options for seniors besides a reverse mortgage
2008-08-06 17:00:00 Some seniors just don?t want to get into any debt during their golden years and a reverse mortgage loan is, in fact, a debt.
Which reverse mortgage is right for you
2008-08-01 17:00:00 There are three basic types of reverse mortgage loans to choose from. One type is a single-purpose reverse mortgage. They are offered by government agencies or nonprofit organizations and make it possible for low-income homeowners to pay for a specific issue, like fixing a leaky roof.
Reverse mortgage improvements
2008-07-31 17:00:00 If you are thinking of a reverse mortgage, then you will be happy to hear that there are many improvements being made to the government-sponsored program. These changes are only for FHA-insured Home Equity Conversion Mortgage (HECM) program, and will take approximately 60-90 days to implement.
Reverse mortgage lenders pay you to stay in your home
2008-07-24 17:00:00 There are many different benefits to a reverse mortgage. First and foremost, you get money from the equity you have built in your home to use however you please.
Selecting a reverse mortgage lender"
2008-07-21 17:00:00 There are many things to think about if you are considering a reverse mortgage loan. One of the most important steps is selecting the appropriate reverse mortgage lender.
Seniors protected with new bill for reverse mortgage
2008-07-11 17:00:00 The financial services industry is worried about a Senate housing bill introduced by Sen. Claire McCaskill (D-Mo). In the bill is a provision that would prevent providers of reverse mortgages from selling borrowers another investment for the proceeds of the loan.
New reverse mortgage legislation calls for more disclosure
2008-06-30 17:00:00 Earlier this month, Governor Carcieri of Rhode Island signed a reverse mortgage legislation that mandates greater disclosure of fees charged by lenders.
Reverse mortgage fees protect borrowers
2008-06-26 17:00:00 The high closing costs associated with a reverse mortgage is what keeps some seniors away. But one of the reasons that the closing costs are high is because of the mortgage insurance that is required on all HECM Reverse Mortgages.
Leave something extra for your heirs with a reverse mortgage
2008-06-20 17:00:00 One reason why some seniors choose not to take out a reverse mortgage is because they want to leave their home for their heirs. With a reverse mortgage, the house is sold by the bank once the last remaining borrower dies.
Reverse Mortgage worth the fees
2008-06-18 17:00:00 Some seniors are wary about reverse mortgages because of their high fees. It?s true, the fees that come with a reverse mortgage are pretty high, around 6%, but it just might be worth it depending on the senior?s situation.
Is a jumbo reverse mortgage right for you
2008-06-10 17:00:00 At least 90% of reverse mortgages are the Federal Housing Administration?s government insured Home Equity Conversion Mortgage (HECM). The other 10% are jumbo or proprietary reverse mortgages, which are not backed by the FHA.
NZ Reverse Mortgage Calculator Shows It Can Be Done
2008-06-06 02:19:00 We usually think of reverse mortgages in terms of the U.S. marketplace, but they also have reverse mortgages overseas. For those who say that reverse mortgages are too complex to explain, you need to take a look at Sorted.org.nz. The site has exceptional information regarding various financial issues, including costs for New Zealand reverse mortgages. One of ... read more
Foreclosure Relief With Reverse Mortgages
2008-06-05 06:28:00 Fidelity Reverse Mortgage, a reverse mortgage company headquartered in Denver, Colorado, has announced a foreclosure relief program under which it will waive certain costs for qualified borrowers facing foreclosure. “Under our relief program,” said David Miner, Chief Executive Officer of Fidelity Reverse, “Fidelity will identify a senior homeowner to be reimbursed for some of the costs ... read more
Is reverse mortgage permanent
2008-06-04 17:00:00 It?s a hard decision to commit to a reverse mortgage because after you sign the papers, there really is no going back. It is possible to refinance a reverse mortgage loan, but once you borrow against the equity in your home, the only way for your house to earn more equity is by appreciation, which is not a factor in anyone?s control.
The Old Man & His Money
2008-06-04 06:31:00 I overheard a conversation the other day. It went like this: “The biggest issue with reverse mortgages is that in one shot seniors can get a pile of money, spend it and then be left with nothing. Maybe it would be a smart idea if we limited access to senior equity.” When I hear such comments I ... read more
Seniors Seek Early Exists From Retirement Plans
2008-06-03 06:38:00 The Wall Street Journal reports that “as consumers max out their credit lines and banks clamp down on lending, many older and middle-class Americans are resorting to pricey, often-risky alternatives to stay afloat. Some are depleting their retirement accounts, tapping 401(k)s for both loans and hardship withdrawals. Some new fast-cash options allow homeowners to squeeze ... read more
Consumer resistance to blame for slow growth with reverse mortgage
2008-06-02 17:00:00 Throughout the next few years, the reverse mortgage market is expected to grow tremendously. So far the growth has been slower than expected because of a lack of originators and consumer resistance.
Use reverse mortgage to pay off debt
2008-06-02 17:00:00 In March, the Federal Reserve reported that consumers had a record $957 billion of credit-card and other types of revolving debt outstanding, which is up about 8% from a year earlier.
Take The Advantage Of A Reverse Mortgage Loan For Financial Security Posted
2008-06-02 09:00:00 Once you have reached your old age and the regular inflow of income has stopped due to retirement, managing your finances and running the household can be quite a challenge. Also, during the old age the cost on health care is bound to rise and with little social security, you may find yourself being forced to depend on others.
More Regulation Sought For Reverse Mortgages
2008-06-02 06:28:00 You can’t help noticing that reverse mortgages are growing like financial weeds while much of the mortgage marketplace is withering. Speaking in Chicago last month, Kieran P. Quinn, chairman of the Mortgage Bankers Association, said the following: “We want laws and regulation that give no quarter to fraud and irresponsible practices, and that will also set the ... read more
Reverse Mortgages & The $1 Million Home
2008-05-30 07:03:00 Patrick writes and says, “our California home is valued at approximately $1,000,000 but we owe $450,000 on it. What will a reverse mortgage do for us? I am turning 61 and my wife will be 60 in 5 months. I need input for planning purposes.” I would make the following suggestion: Don’t plan yet. The reason for ... read more
Credit score doesnt matter when qualifying for a reverse mortgage
2008-05-29 17:00:00 People all over the country have been using their credit cards to pay off their mortgage and other expenses. Even seniors are being hit hard with the high interest rate of credit cards, and having to pay it off on a fixed income.
Debating The $730,000 Reverse Mortgage
2008-05-29 06:55:00 The CongressDaily is reporting that Rep. Barney Frank (D-MA), chairman of the House Financial Services Committee, wants to raise reverse mortgage loan limits to “almost $730,000.” According to the publication, the reason Frank wants to raise the HECM loan limit is to collect more fees. Those fees would then be used to underwrite expected losses from ... read more
Does reverse mortgage give too much freedom
2008-05-28 17:00:00 For many seniors, a reverse mortgage can be a great financial vehicle to carry them through their golden years in relative financial security. One of the perks is that they can spend their home?s equity on just about anything.
Sometimes Clients Make The Best Salespeople
2008-05-28 06:28:00 Over a period do years I have found that clients who have done their home work, need little or no assistance understanding why a reverse mortgage would work for them — or, in some cases, why it wouldn’t. A number of clients have done their homework, but they still like to check with friends, family and ... read more
Treat reverse mortgage as final option
2008-05-27 17:00:00 For seniors who have not prepared for their retirement as well as they had hoped, there is always a reverse mortgage. But a reverse mortgage loan shouldn?t be looked at as a backup; instead it should be seen as an option when all others are gone.
Should Reverse Mortgage Insurance Premiums Be A Cash Cow For Uncle Sam?
2008-05-27 06:12:00 Back in January we reported that of roughly 375,000 FHA reverse mortgages which had been issued since HUD began the program, only 1,609 claims had been made against the reverse mortgage insurance plan. That sure doesn’t sound like a lot of claims, but part of the reason for the low number is that most home equity ... read more
Memorial Day
2008-05-26 06:20:00 A few weeks ago my wife and I went to Florida to attend the 60th wedding anniversary of an aunt and uncle. The honored couple are decent and honorable people who lead a good life. It was great to see that more than 100 friends and family members turned up to celebrate their big day. Part of ... read more
Is reverse mortgage due if you move to a nursing home
2008-05-23 17:00:00 Reverse mortgages have several benefits, especially since the money you receive from it isn?t counted as additional income, and therefore is tax free.
Money Magazine Columnist Looks at Reverse Mortgages
2008-05-23 06:05:00 Walter Updegrave, Money Magazine senior editor, has now written about reverse mortgages. In his article, Reverse mortgages: Beware the come-ons, Updegrave says “reverse mortgages can help cash-strapped retirees generate extra money for living expenses, pay for home improvements, lower other debts or fund the occasional splurge. “There’s also a downside to reverse mortgages’ growing popularity, however. Loan-origination ... read more
Reverse mortgage great for seniors who own house
2008-05-22 17:00:00 Seniors who are cash-strapped are looking for options to help their financial situation. Reverse mortgages are a great option, but are usually better suited for those whose homes are either paid off or have a low mortgage balance, and who want to live in the residence for the rest of their lives.
Reverse mortgage great for seniors who own house
2008-05-22 17:00:00 Seniors who are cash-strapped are looking for options to help their financial situation. Reverse mortgages are a great option, but are usually better suited for those whose homes are either paid off or have a low mortgage balance, and who want to live in the residence for the rest of their lives.
FDIC Talks About Reverse Mortgages
2008-05-22 06:03:00 The Federal Deposit Insurance Corporation — the federal entity which insures bank accounts — has just issued a new publication entitled Money Tips for All Ages: Your Finances at Different Stages of Life. The subjects covered include: ___Before You Retire: Getting Your Finances Ready for Your Golden Years ___After You Retire: Managing Your Expenses on a Fixed or ... read more
Who Can Be Paid For Originating A Reverse Mortgage?
2008-05-21 06:41:00 HUD has come out with a renewed set of guidelines regarding who can be paid for originating an FHA reverse mortgage — and who can’t. According to the new mortgagee letter to lenders, HUD says the only people who can be paid for originating FHA-backed reverse mortgages are FHA-approved parties. However, the rules also allow payments ... read more
Reverse Mortgages & The Matter of Prudent Risk
2008-05-20 06:33:00 It was nearly two years ago that the Alliance for Retired Americans, a group with some 3 million members, wrote about reverse mortgages. What’s interesting about what they wrote is that in the past two years real estate markets in many areas have gone from boom to bust and yet their analysis remains largely on track. As ... read more
Fannie Mae Backs Away From ?Declining? Markets
2008-05-19 06:37:00 Last year both Fannie Mae and Freddie Mac, the big buyers of local mortgages, decided that falling real estate values required a change in the way they underwrite mortgages: In areas they identified as “declining” markets buyers would need an additional 5 percent down. For reverse mortgage borrowers the new policy has been troubling. Why? Because ... read more
Reverse mortgage great for those who dont want to move
2008-05-16 17:00:00 One way to find out if a reverse mortgage loan is right for you is to look at your future plans for your home. Do you plan on staying there for a long time? Or do you plan on moving or selling in the near future?
40% of Wealthy Seniors Cutting Back
2008-05-16 14:38:00 Our slowing economy is having an impact on seniors. “One in four affluent 60-year-olds are changing their retirement plans and 40 percent ?downsizing? their lifestyles,” according to an April national survey from Bell Investment Advisors. The survey used a random sample of opinions from 500 adults comprised of 250 men and 250 women who were born ... read more
Will Reverse Mortgage Costs Fall?
2008-05-15 06:16:00 For some time there has been considerable concern regarding the origination costs associated with HUD-insured reverse mortgages, fees which are “limited” to 2 percent of the property’s maximum claim amount. “Generally,” says HUD, “the property value and the maximum claim amount will be the same because the maximum claim amount is the lesser of the appraised ... read more
On The Trail of DPLs
2008-05-14 07:52:00 For seniors in need there are alternatives to reverse mortgages, reports syndicated columnist Lew Sichelman, writing in the Chicago Tribune. Sichelman says that seniors might want to look into “deferred-payment loans” from state and local governments to make home repairs, accessibility modifications and improvements to reduce energy usage. Generally, says Sichelman, with DPLs “there are no origination ... read more
HUD ? Lender-Funded Reverse Mortgage Counselors Just Fine
2008-05-13 07:53:00 HUD has come out with new reverse mortgage regulations. The Department now says that “based on feedback from reverse mortgage counseling providers and cost data collected by HUD, HUD has determined that a HECM counseling fee of $125 per counseling session constitutes a reasonable and customary fee, and does not exceed a level so as ... read more |
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