Stop Foreclosure with Reverse Mortgages
If you are a homeowner, you’ve likely seen the news about the Housing Stimulus Plan being passed through Congress right now.The plan offers refinance plans for those in adjustable rate mortgages, tax breaks for first time home buyers, and huge economic incentives to bail out the big lenders that are in trouble today. These measures are all designed to protect our economy, and to stop the huge increases in foreclosure filings being seen every day across the country. Unfortunately, the guidelines to refinance into a fixed rate loan with this new plan won’t allow you to refinance if you can’t afford the new payments. They also will require you to verify you have the income, assets and credit to qualify for the new refinance. This leaves thousands of borrowers with few options — particularly seniors on a fixed income. Many seniors have considerable equity built up in their homes but, with rising fuel, food, and medical costs, they are struggling to pay their bills. Social Security just isn’t enough, and we’ve all seen private pensions aren’t as secure as we were told! I talk with seniors every day that own their home, have a mortgage they’ve paid on for years, and are now facing the choice between paying their mortgage and buying the medicine they need to live.
This leaves many seniors, particularly widows that have lost their husband’s additional pension and retirement income, in a situation they have never faced before. After years of paying their bills on time they are forced into a situation that should never happen to anyone, especially someone that is supposed to enjoy the “Golden Years” of retirement.
For many seniors, there is an excellent option out there called the Home Equity Conversion Mortgage, more commonly known as the Reverse Mortgage. This is an FHA Insured, AARP endorsed program. It allows a senior to borrow against their home, and the loan does not require repayment until the senior passes away or moves out of the home.
This program can be a perfect fit for an elderly client facing foreclosure, or even bankruptcy. The program allows you to typically borrow between 60 and 80 percent of your homes value, and the proceeds can be used to pay off the mortgage you can’t afford to pay, freeing up that old mortgage payment for you to spend however you wish every month. In many cases we can also provide you with additional monthly income from the reverse mortgage, or a line of credit for you to use when the unexpected happens.
If you are struggling to pay your bills, facing foreclosure, or considering bankruptcy, please stop to investigate your other options first. The FHA/HUD Home Equity Conversion Mortgage (Reverse Mortgage) is an excellent option. Information is available from many sources. You can visit an online reverse mortgage learning center at www.accessrm.com, or call (800) 806-7126 anytime for additional information.
Avoid the pain and embarrassment of foreclosure or bankruptcy. See if a reverse mortgage can save your home and allow you to live there comfortably (and payment free) for the rest of your life!
Tags: Bankruptcy, foreclosure, HECM, reverse mortgage