Reverse Mortgage
FHA Anti-Flipping Waiver Extended Through 2012
The Federal Housing Administration (FHA) announced today they will extend the temporary waiver of FHA’s anti-flipping regulations through 2012, in hopes the move will stimulate foreclosure sales. In a press release announcing the extension of the FHA anti-flipping waiver (click to …
Using Reverse Mortgages For Health Care
The proceeds from a reverse mortgage can be used for health care expenses but the high costs and fees can outweigh the benefits. Q: Would you recommend that my 86 year old grandmother consider a reverse mortgage to pay for …
401k Withdrawal Or Home Equity To Pay For Wedding
What would be better, the withdrawal of 401k funds or to obtain an home equity loan to pay for wedding expenses? Q: I am 57 and my husband is 62. We would like to borrow $25,000 to help pay for …
Reverse Mortgage Is Not Assumable
Q: My mother has a reverse mortgage. I am 59 and my husband and I are moving into my mother’s house to take care of her. My brother and sister and I are currently in mom’s will to inherit the …
Home Repair Loans for Seniors
Q: My mother is 80 years old and lives in San Antonio, Texas. Her home is approximately 50 years old. The house needs some serious remodeling. It needs to be leveled and the beams from the roof poking into one …
HUD Ruling May Prevent Reverse Mortgage Foreclosure
Last week’s Department of Housing and Urban Development (HUD) ruling may prevent reverse mortgage foreclosure. AARP Foundation Litigation filed a formal challenge to a 2008 rule change on behalf of three surviving spouses of reverse mortgage borrowers, and the new HUD ruling may prevent reverse mortgage foreclosure. Seniors have been experiencing foreclosures but a new HUD ruling may prevent reverse mortgage foreclosure going forward.
Need For Money Causes Family Members To Decide Whether To Get A Reverse Mortgage
When money is tight, senior citizens frequently look to the equity in their home for a solution. One way to tap into that equity is for a senior citizen to obtain a reverse mortgage. Reverse mortgages allow a person to obtain a monthly payment for the rest of the time they live in the home or allows them to take out a lump sum payment at one time. Before you consider a reverse mortgage, make sure you understand what it will cost to obtain the loan. Even if you are told that the costs will be put into the loan amount and you won’t have to pay anything out of pocket, you still need to know what those costs are. If you don’t understand the fees involved in obtaining a reverse mortgage, you will be surprised later on or your family members will be in for a surprise when you sell the home or are no longer around.
Reverse Mortgage Threatening Home Equity For Seniors
Senior’s Home Equity may be at risk from reverse mortgage lending abusers, according to a report from the National Consumer Law Center. Reverse mortgages are being used by abusers of the subprime mortgage market as “tools” to profit from seniors. The National Consumer Law Center thinks that if protections aren’t put in place soon, not only will the life savings of senior citizens become depleted, but so will our tax dollars and economy. Read the full story on reverse mortgage abuse below from the National Consumer Law Center.
Choices With Reverse Mortgage Payments
If you are 62 years or older, you may qualify for a reverse mortgage. Reverse mortgages can come in different forms and give you different choices. You can take a lump sum payment when you obtain a reverse mortgage or you can choose to receive a monthly payment. Reverse mortgage fees can be high and are not for everyone. Reverse mortgage are also known as a home equity conversion mortgage or HECM.
How Does A Reverse Mortgage Work And What Are The Pitfalls?
How does a reverse mortgage work? A homeowner can take out a loan based on the equity in their home, and the loan becomes due when the home is sold. Usually FHA’s home equity conversion mortgage (HECM) program is loaded with insurance to prevent any loss in case the value of the home drops. However, pitfalls with reverse mortgages can range from life expectancy issues to home value calculations. And any of these pitfalls can cause problems down the line with reverse mortgages.
