Aug. 29 (Bloomberg) — U.S. Senator Charles Schumer called on Countrywide Financial Corp. to waive prepayment penalties, refinance loans and eliminate “above-market fees” to help homeowners struggling to make payments on subprime mortgages.
Countrywide, the biggest U.S. mortgage lender, should stop paying higher commissions to brokers who steer borrowers to high-cost loans that “are designed to fail,” Schumer told reporters in Washington today.
“I am calling on Countrywide, as our nation’s largest lender, to bury its bad business practices and reverse some of the damage it has already inflicted on our housing market,” the New York Democrat said. (more…)
Written by charles dennis on September 14th, 2007 with no comments.
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Seniors finding reverse mortgage program beneficial,
A growing number of area senior citizens who have found themselves strapped for cash or in debt are turning to a program that could be their salvation.
It’s called a reverse mortgage, and it more frequently is becoming the answer for older people in debt, on fixed incomes or unable to sell their homes in today’s struggling housing market.
“It helped me get a car. It helped me catch up on some bills. Oh, God, it was a godsend,” said Ruby Jean Butler of Flint.
Butler, 84, got her reverse mortgage in 2005 and was so pleased with it that she now promotes the program for Vienna Township-based Senior’s Equity Income Inc. The company is one of the area agencies that handles the type of reverse mortgage Butler received - officially called Home Equity Conversion Mortgages.
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on September 14th, 2007 with no comments.
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Top 10 Reverse Mortgage Myths Dispelled,
As reverse mortgages have continued to grow in popularity, so have a range of myths and misinformation about these unique loans.Fortunately, there’s more and better information available today than just a few years ago. However, as many seniors, the adult children of seniors and advisors are exploring reverse mortgages, some old myths still linger and new myths have emerged. Listed below are some of the most common misconceptions along with a few facts:
(1). The bank takes the house OR the borrower can lose the house.
With a reverse mortgage, the borrower retains title to the home throughout the life of the reverse mortgage. The borrower cannot, as a result of the reverse mortgage, be forced out of his or her home as long as property charges such as taxes and insurance are paid and the home is maintained in reasonable living condition.
Once the last borrower permanently moves out of the home, the loan must be repaid. Most properties secured by reverse mortgages still have equity when a maturity event occurs and therefore the borrower or his/her heirs can choose to sell the home to repay the loan and preserve this equity for the benefit of the borrower or his/her estate.
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on September 14th, 2007 with no comments.
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Reverse Mortgages Help Cure Bad Loans,
Using a home equity line of credit, David Casey and his wife Joyce made some much-needed improvements around their house. New carpet. Updated plumbing. But the credit line’s interest kept jumping, pushing their monthly payment to nearly $1,000 from $600.A $239,000 reverse mortgage from Generation Mortgage Co. rescued the retired couple from the adjustable-rate credit line and provided enough money to pay off the original mortgage with some left over.
Typically used to finance retirement or pay unexpected medical bills, the reverse mortgage now is helping some seniors escape tight spots created by risky mortgages and home equity lines of credit.
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on September 14th, 2007 with no comments.
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Putting it in reverse,
Seniors finding mortgage program beneficial
A growing number of area senior citizens who have found themselves strapped for cash or in debt are turning to a program that could be their salvation.
It’s called a reverse mortgage, and it more frequently is becoming the answer for older people in debt, on fixed incomes or unable to sell their homes in today’s struggling housing market.
“It helped me get a car. It helped me catch up on some bills. Oh, God, it was a godsend,” said Ruby Jean Butler of Flint.
Butler, 84, got her reverse mortgage in 2005 and was so pleased with it that she now promotes the program for Vienna Township-based Senior’s Equity Income Inc. The company is one of the area agencies that handles the type of reverse mortgage Butler received - officially called Home Equity Conversion Mortgages.
(more…)
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on September 14th, 2007 with no comments.
Read more articles on Feeds and Wires.
Reverse mortgage possible when title’s held in trust,
What lender requires before loan is recorded
DEAR BOB: To avoid probate costs and delays when I pass on, I recently created a revocable living trust and deeded my condo title into it. I am 62 and plan to get a senior-citizen reverse mortgage in about eight years when my current interest-only mortgage converts to an amortized mortgage. Does having the condo title in my living trust prevent my getting a reverse mortgage? –Alan W.
DEAR ALAN: No. As long as you have sufficient equity in your principal residence, holding title to it in your revocable living trust won’t prevent you from obtaining a reverse mortgage.
However, the reverse-mortgage lender will ask you to take the title to your home out of your living trust momentarily so the reverse mortgage can be recorded against the title.
After that is done, you can then have the attorney or title company re-deed the title back into your living trust. It’s a bit confusing but is done everyday.
Found here.
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on September 14th, 2007 with no comments.
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Think twice before you get a reverse mortgage,
Local banks and mortgage companies are pushing a unique mortgage loan that sounds more like you just won the lottery.Instead of making monthly payments, you receive monthly payments and you don’t have to pay it back until you sell you home. It’s called a reverse mortgage.
But proceed with caution.
Reverse mortgages have been around for some time, but they’re being heavily market right now, in part because of all the long-time homeowners who are sitting on a gold mine in equity.
(more…)
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Full post here Reverse Mortgage Loan Blog
Written by News & Feeds on September 14th, 2007 with no comments.
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