Fasttracking Reverse Mortgages for troubled borrowers

Posted by charles dennis

June 4, 2008

Michael Pitner of Trump Financial had a very interesting commentary on ActiveRain from his frontline view of lenders offering to fast track reverse mortgages of borrowers that find themselves headed for foreclosure. Michael states:

“I wish there were better statistics about how many Reverse Mortgages have been used to rescue people from foreclosure, but there aren’t. What I can tell you is that every major lender has a fast track for processing Reverse Mortgages in foreclosure. What that means is that when every loan is submitted the loan officer has to indicate whether the current loan is in foreclosure or not. if it is, then the whole process is expedited to avoid the borrower losing their home. In may cases the old lender is accepting a short-sale or less than they are owed to get paid off. “

What’s important to note, is that there have been many reports of lenders not acting fast enough to stave off troubled borrowers looking for help. But in the reverse mortgage space, at least the news is not as glib for seniors.