reverse mortgages: Some Pros & Cons about Reverse Mortgages
- 09/05/08 02:52 PM
Are you considering a reverse mortgage to get some much needed cash in these trying economic time? If yes, you need to make sure you are fully aware of all the reverse mortgage pros and cons. Although many that get a reverse mortgage, are getting it to help get through some tough financial times, it can be used by people with many different incomes or assets! But it is important to know exactly what you will be getting when you apply for a reverse mortgage. Because so much publicity seems to be negative on reverse mortgages (usually because of a lack of correct information) let me start with … (5 comments)
reverse mortgages: -) WARNING (- "Another Reverse Mortgage Scam"
- 08/16/08 07:04 AM
How often do you see a title that looks at least something like this? I know I see it frequently. But in reality, many of these articles, blogs, etc., are being written by people that do not know the CORRECT FACTS about today's FHA/HUD backed HECM (Home Equity Conversion Mortgage) Reverse Mortgage Program. They say counseling should be required on all of them. IT IS!! They say it causes foreclosures, when in reality, they cause almost NONE, and in virtually every instance that the homeowner qualifies, it PREVENTS foreclosures! [CLICK HERE] for a blog about this very topic - ZERO, that's NONE out … (5 comments)
reverse mortgages: To get 'that feeling' about reverse mortgages?
- 07/19/08 12:40 AM
To all those that are regular forward mortgage brokers/loan officers - do you ever get "that feeling"of helping a person save their home from foreclosure? Very few, if any mortgage brokers/loan officers put an immediate stop to a foreclosure, and halt it in its' tracks - oh yes, sometimes you can get a person a new loan, usually with very high rates (because of their bad credit) and temporarily stop a foreclosure. But unless the person/couple really turn things around, with the higher rates and payments, more than likely, they will be right back in the same boat in a few months, or … (2 comments)
reverse mortgages: Not another "Reverse Mortgages Are So Bad" blog?!?!?!
- 07/15/08 03:55 AM
OK, sorry to preach, but I just saw a blog about Reverse Mortgages by Michael Pinter. First, let me commend him for his blog [I can't believe that so much media attention about Reverse Mortgages is still negative] where he plainly states he doesn't understand all the negative publicity about Reverse Mortgages. Second, I keep saying the same thing, those that are so negative about reverse mortgages usually do not have all the correct facts about reverse mortgages!
Let me address several issues made in the comments: Reverse Mortgages WERE a rip-off - Honestly, to those that know or remember the … (10 comments)
reverse mortgages: IndyMac's demise and it's effect of Financial Freedom Reverse Mortgages
- 07/12/08 05:21 AM
While the behind the scenes effect will probably be drastic and difficult, the effect to all borrowers who have Financial Freedom Reverse Mortgages will be next to nothing. As I have explained in several blogs, if a lender goes out of business, or becomes insolvent, HUD can take over and continue any payments, line of credit withdraw request, etc. So if you have a HECM reverse mortgage, and the lender is Financial Freedom, do not panic. There are many safeguards built into the reverse mortgage program backed by FHA/HUD, and this is just one of them. These same safeguards are built into all … (1 comments)
reverse mortgages: What do YOU know about reverse mortgages?
- 07/03/08 01:37 PM
Did you know that you can get fixed interest rate options? Many are concerned with the adjustable rate reverse mortgages - even though as I stated in several blogs, in the last 20 years, the highest the monthly adjusting reverse mortgages have gone is in 1991 & 2000 when the rates went in the 9% range, and in those same years, the yearly adjusting went into the mid-7% range. Again, these are the highest in the last 20 years. They also have a 10% cap over the original rate. On average, they have ranged from 5% to 8% although right now, although … (5 comments)
reverse mortgages: I am considering a reverse mortgage, what are your thoughts? And WHY?
- 06/26/08 11:54 PM
Of course, I am not old enough to get one. And it would not take you long to read my blog to learn that I am a big proponent of them, and I get annoyed when people spread completely false information about them. If they chose not to get a reverse mortgage based on correct facts, that is certainly OK! Of course, I only want correct facts being spread about them, BUT, for this blog, I am in one of my curious fact & opinions seeking moods. Whether you are a reverse mortgage specialist, and have 25 years experience, or have no first hand … (6 comments)
reverse mortgages: So, how many Reverse Mortgages are being forclosed upon?
- 06/24/08 11:50 PM
Although I have always held the belief, and felt strongly that it was correct, as usual, I like to have hard irrefutable facts backing up my opinion, no matter how strong or how much I feel I can justify my belief. As mentioned in several of my blogs lately, I have said most people that get reverse mortgages are helped and it can prevent foreclosure, and rarely are they foreclosed upon. The fact that a reverse mortgage can prevent foreclosure, is just that, a fact. The HUD/FHA backed HECM reverse mortgages are designed that if a borrower qualifies with enough equity, … (10 comments)
reverse mortgages: Are Reverse Mortgages costs so much more than regular mortgages?
- 03/23/08 04:22 AM
When speaking to Realtors, and even other mortgage brokers/lenders, etc., those that frown upon Reverse Mortgages often list their costs as way to high as one of their reasons they steer their clients away from them. As a Certified Mortgage Notary Signing Agent, I see all kinds of loans, and while I have always said that I felt their costs were in line with regular mortgages (IF you could take out the required Mortgage Insurance) I never actually sat down and computed the difference. Until now! I do not remember how to calculate all the statistics as far as probability, and … (5 comments)
reverse mortgages: Calling all Realtors - LEARN ABOUT REVERSE MORTGAGES! They can help YOU sell a home!
- 03/01/08 04:32 AM
Several times recently, I have talked to local Realtors about Reverse Mortgages. "No", "They are bad", "I've only heard bad things about them", are among the responses I've received lately. Honestly, all Realtors SHOULD want to sell homes, and Reverse Mortgages are another avenue to educate your potential home-buyer! Learn the facts about the FHA/HUD backed HECM Reverse Mortgages! When you learn the facts, it is hard to say anything bad about them! Some of the original 1970's & 1980's private Reverse Mortgages had more than their fair share of problems, to say the least! But the HECM Reverse Mortgages have corrected … (0 comments)
reverse mortgages: Reverse Mortgage myths still persist
- 11/04/07 05:13 AM
Recently, I saw a comment that I really want to address. She was concerned about a relatives inability to make changes to their home because of having a reverse mortgage on their home. About a month ago, I wrote a blog addressing this very issue http://activerain.com/blogsview/229001/Still-the-most-common and the very first MYTH~that the bank takes title to the home. Remember something, as with ALL mortgages or liens, YOU own your home, and YOU continue to own YOUR home, and you can make any improvements and upgrades you want (as long as you adhere to your local building codes). If you know of someone considering a Reverse … (4 comments)
reverse mortgages: If you get a Reverse Mortgage, how long will you keep it?
- 11/02/07 04:17 AM
Recently, I saw a statistic published by HUD, stating that over half of all HECM Mortgages (the most popular and common Reverse Mortgage) were not kept for six years. And many were only kept for three to four years. One thing to consider about this if you are considering a Reverse Mortgage. While I am a big proponent of these, to keep it for such a short period of time, makes your APR (the cost to you in an annual term) often extremely high in the teens as far as percent (15-20%) or even in the 20%'s. This is as high, if not … (3 comments)
reverse mortgages: Only use HUD approved lender/brokers for Reverse Mortgages
- 09/27/07 02:58 PM
I just heard of a company in Austin TX, that at best is doing questionable things, and is being sued for fraud. A Reverse Mortgage 'consultant agency' advised a senior homeowner to contract with a company to do repairs on his home, and then gave the impression that he could likely get a Reverse Mortgage for him once his home was in better repair. The man has since died, and the family states the contractor was never given permission to start work, although that company claims they did receive permission. Now they are suing to get reimbursed for work done. Obviously, that … (3 comments)
reverse mortgages: Countrywide plans to add 2,000 sales jobs this year & offer 50 Year sub-prime loans
- 09/27/07 02:13 PM
I must say, I just saw the news (Reuters, reporting) about Countrywide CEO Angelo Mozilo stating Countrywide is planning on adding 2000 jobs AND rolling out 50-year sub-prime loans as well as Reverse Mortgage products. The Reverse Mortgage products, I can see somewhat, but it would almost seem that should only be done by a business with plenty of working capital, because it will in most cases be several years before they get their money returned. And 50-year sub-prime products??? Am I missing something here, isn't this the same Countrywide that has been saying they are practically on the verge of bankruptcy … (18 comments)
reverse mortgages: Are Reverse Mortgages a part of Predatory Lending?
- 09/27/07 02:24 AM
I saw a blog this morning, outside of AR, where the blogger felt Reverse Mortgages are predatory lending, and contributing to the economies problems, down the road anyway. Obviously, from my previous posts, you should be aware that I feel Reverse Mortgages are a great thing. Now, I would say they are not for everyone. But they can help a senior tremendously! The blogger also felt in a few years, many with Reverse Mortgages would blow the money that they get from the Reverse Mortgage, and the homeowner (& heirs) would be left with nothing and the inability to continue to pay their … (7 comments)
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Ronald Gillis
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Are you considering a reverse mortgage to get some much needed cash in these trying economic time? If yes, you need to make sure you are fully aware of all the reverse mortgage pros and cons. Although many that get a reverse mortgage, are getting it to help get through some tough financial times, it can be used by people with many different incomes or assets! But it is important to know exactly what you will be getting when you apply for a reverse mortgage.
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