Beloved celebrities on television tout what seems like a no-brainer for senior homeowners — getting paid to stay in your home using a reverse mortgage. It seems like perfect solution, especially for seniors who are facing financial difficulty. But can a reverse mortgage be used to stop a foreclosure and resolve a mortgage default? Can a reverse mortgage save your home? How exactly does a reverse mortgage benefit seniors who are at risk of losing their home to foreclosure?
Definition of a Reverse Mortgage
A reverse mortgage is only available to those homeowners over the age of 62 (and, in some cases, those over the age 55). It relies upon the equity in the home to provide security to the reverse mortgage lender so that a new home loan can be made without any payment obligation whatsoever (so long as you pay your property taxes and insurance). Without a payment obligation, qualifying for a reverse mortgage is very, very simple. There is no minimum credit score or requirement to have sufficient income to make mortgage payments. In fact, you can even qualify for a reverse mortgage while you are in default or foreclosure on a current home loan!
SAVING YOUR HOME FROM FORECLOSURE WITH A REVERSE MORTGAGE
A reverse mortgage allows a homeowner to completely pay off their current mortgage (and even other debts like credit cards) so that they are no longer required to make monthly payments. The homeowner can live securely in their homes without fear of foreclosure and eviction. It can also provide a lump sum payment of cash or secure monthly payments for life to ensure financial security.
A reverse mortgage is especially helpful for seniors facing foreclosure. There is no other way to refinance a mortgage in foreclosure. Without the reverse mortgage option, the entire mortgage default must be paid from savings or retirement accounts in order to save the home.
By using the reverse mortgage, the homeowner can actually get a lump sum cash payment or receive monthly income for life. This ensures they consistently have funds to meet their basic needs. It also provides peace of mind, knowing they are no longer at risk of losing their home.
Work with an Attorney/Realtor
Fraud and shady dealings are rampant in California’s mortgage industry. There are many charlatans who are only interested is collecting fees and closing deals. Make sure anyone you talk to is not only licensed, but truly understands how a reverse mortgage works and how to structure it in a way that provides maximum financial benefit. It is in your best interest to use an Attorney/Realtor in any situation where a foreclosure has been commenced or any time you are dealing with a difficult real estate or mortgage issue.
Take Your Time and Make an Informed Decision
It is important to carefully understand all of the foreclosure avoidance options available to you before taking out a reverse mortgage. The team at Lawyers Realty Group can fully evaluate your situation under our Senior Homeowner Protection Plan and help you determine the best way to save your home and achieve financial security. We offer an unmatched level of expertise and protection for homeowners. In an industry known for dishonest practices, our clients can have peace of mind knowing that all legalities are being followed and their best interests are always being served. Contact us today online or by phone at (949) 264-0966 for a free, no-obligation consultation.