Reverse mortgage bails out seniors facing foreclosure,
For those with second homes, strategy can help keep property in the family
George A. Downey, a longtime reverse-mortgage lender, walked into a seminar designed to help people explore creative financing alternatives in an attempt to avoid default and foreclosure.
“There were some older folks in the room, but nothing was ever offered about a reverse mortgage being a possibility,” said Downey, founder of Braintree, Mass.-based Harbor Mortgage. “The numbers have to work, but if they do, it can be a godsend for them. The current mortgage is paid off; they keep the house; and they have no future payments. …”
According to the United States Bureau of the Census and the National Center for Health Statistics, the older population — persons 65 years of age and older — numbered 35 million in 2000. While the years since the last census have altered the numbers, it showed the over-65 group represented 12.4 percent of the population — about one in every eight Americans. The census data showed nearly 80 percent of the nation’s seniors own their own homes, and 73 percent are owned free and clear of any mortgages, amounting to nearly $1.9 trillion in home equity.
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Reverse mortgage bails out seniors facing foreclosure
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Written by News & Feeds on March 28th, 2008 with no comments.
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Bid to regulate reverse mortgages stalls in House,
An effort to enact Arizona’s first-ever regulation of reverse mortgages has stalled amid industry opposition.
Rep. Bill Konopnicki, a Safford Republican sponsoring the reverse-mortgage legislation, said the state’s aging boomer population is resulting in more people reaching the age at which they might want to use the equity in their homes for living expenses.
Konopnicki, who chairs the House Committee on Financial Institutions and Insurance, said there are serious pitfalls for those who go unaware into what can be complex financial deals. At the very least, Konopnicki wants better disclosure of the terms of these deals which he said can leave homeowners with far less than they anticipated.
But HB 2506 has stalled, and not only because of concerns by lobbyists for the banking and mortgage industry. It also has drawn fire from some lawmakers who question level of protection the state should provide to keep people from making bad financial decisions.
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Bid to regulate reverse mortgages stalls in House
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Recently Featured in the Yuma Sun, home to many retirees in Arizona and the country overall, one reader gives their feedback on a recent article that the Sun wrote that was critical of reverse mortgages.
The many choices of information sources these days tends to confuse us more and more. It is no wonder that so many of us don’t believe or trust anyone. Choice is not always a benefit.
The recent article on reverse mortgages in The Sun is a case in point.
Several points made in the article are just plain false.
1. Reverse mortgages “are very complicated.” Not so. An RM is simply another kind of mortgage where you are able to use the equity out of your house to supply money in your retirement. The difference is that you don’t make payments on a reverse mortgage in your lifetime and the lender is paid for his investment after you are deceased. Full Story.
Written by charles dennis on March 28th, 2008 with no comments.
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Reverse Mortgage in Retirement Information
Reverse mortgage is usually utilized by home owners as an alternative loan source. This type of loan appeals very much to home owners in the retirement stage of their lives, preferably those from 62 years and beyond. There are many benefits to reverse mortgages, but there are also many factors to consider before fully subscribing to any deal.
Reverse Mortgage Defined
Two of the most attractive elements of reverse mortgage are: that you, as the home owner, do not need a monthly income to qualify for a loan; and you also do not need to make monthly payments to pay off the rest of your debt.
Unlike other home loans like home equity line of credit and the traditional second mortgage where policy owners pay the lenders, reverse mortgage lenders actually pay the home owners in the manner that the home (more…)
Written by charles dennis on March 28th, 2008 with no comments.
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Reverse mortgages on the rise [Australia],
RETIRED workers are being forced to borrow against the value of their homes to cover the higher cost of living in Australia.
A study by auditing firm Deloitte found that the value and number of reverse mortgages taken out in Australia had doubled over the past two years.
There are now 33,700 reverse mortgages in Australia totalling more than $2 billion in value - a rise of 34 per cent in the past year.
Deloitte partner James Hickey said that during the past year $466 million was borrowed - the majority in a lump sum, rather than an income stream.
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Reverse mortgages on the rise [Australia]
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Reverse mortgage is usually applicable only to homeowners who have reached 62 years of age and above. This is a different type of home loan, and as the word reverse suggests, this loan allows the policy owners to convert the equity of their home into monetary value. Now that monetary value can be paid in a variety of ways.
Although it can be paid directly in one large lump sum of cash or a series of small payments over a span of time, some homeowners actually prefer the cash to flow into their retirement funds or as supplement to their Social Security funds. For others, a line of credit is preferred. And others still would prefer a combination of one or more or all of these pay-out options.
In case you do live in Houston, (more…)
Written by charles dennis on March 28th, 2008 with no comments.
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