Even More Options For Stopping Foreclosure For Seniors 62 And OlderHelp for Seniors Facing Foreclosure!
A relatively new Federally backed mortgage product has emerged since 1990, that is becoming more popular as word gets around and people become less confused about how to use this product as a tool to help seniors who are struggling financially. This product may also be a god send for seniors facing foreclosure and eviction from their homes Many seniors those 62 and older who are retired or hope to retire find themselves unable to make ends meet with their current regular income and or pension/social security income. I see this every day, people that I speak with that are retired and can't afford the monthly mortgage payment on their home with the fixed income that they bring in each month.
Some have had friends and or relatives convince them to re-finance to pull out their hard earned equity for some scheme or hair brained idea or what amounts to outright fraud only to leave this poor senior left to pay the new loan. I have come across other seniors on very low fixed income due to being placed on a permanent disbility which reduced what they were making when they were employed.
A relatively new product the REVERSE MORTGAGE can be a tremendous resource for the right person. Seniors 62 and older who have significant equity in their home. What is a Reverse Mortgage? Many seniors are equity - rich but cash - poor. A reverse mortgage allows homeowners older than 62 to make their house payments disappear, for the rest of their lives, even if their is a current balance left on the mortgage loan. No Credit Bad Credit Low Income No Problem ... Your credit history and income or ability to repay is not an issue. I know ,I know seems confusing and too good to be true but.. The popularity of reverse mortgages is growing. In 1990 there were about 157 reverse mortgage loans closed in the US, acording to HUD ( Housing Urban Development) the numbers have been growing fast as of 2006 HUD counted 55,659 new loans of this type. Congress recently lifted the cap on the number of reverse mortgages that HUD can insure the previous cap had been 250,000 of these types of loans.
How it Works...
The senior has to qualify by being at least 62 and older and they must live in the home. There is a calculator which is available on the AARP site which when the birthdate, approximate property value and property zipcode is entered, the system calculates how much money would be available to the senior. Borrowers can use the funds for any purpose-- to fund healthcare issues,supplement income, remodel the home;vacation and here is the big one and why I'm writing this, funds can be used STOP A FORECLOSURE! on a seniors home.
This Is a fantastic option for a senior facing foreclosure and struggling financially.
The borrower can get cash they may need to maintain a comfortable lifestyle without having to sell their home and find another place to live. BEST OF ALL.. NO REPAYMENTS ARE REQUIRED DURING THE BORROWERS LIFETIME! AS LONG AS THEY DO NOT SELL THE HOME OR MOVE. YES, YOU HEARD THAT RIGHT Borrowers can never owe more on a home than it is worth no matter how long they may live. After their death,the home transfers with the estate of the borrower and the borrowers heirs, the liability transfers with the homeownership. The heirs have a period of time to sell the home or refinance it to pay off the reverse mortgage. The program has many safeguards to protect its borrowers, such as strict limitations on interest rates, lenders fees and closing costs.
Loans can be taken as lump sums, fixed monthly payments, lines of credit or a combination of these. Homeowners keep title to their property and mortgages are not repaid until they move or pass on.
Although this isn't an option for every senior, mainly due to that fact that many just don't have enough equity to make it work, especially if there is still a large outstanding balance on an existing loan I believe it is a wonderful option to many seniors.
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