By Dan Pena

In today's environment many senior citizens have to reach deep into their retirement accounts to pay for unexpected   bills such as medical expenses, insurance or home repairs. We are also seeing many of our seniors having to take funds from their retirement accounts to pay for everyday living expenses as their monthly income isn't enough to cover their monthly expenses.  And what about those seniors who may not have retirement accounts to fall back on? My goal with this article is to provide helpful information on REVERSE MORTGAGES.

First I would like to share with you a summarized definition of a Reverse Mortgage.

"A reverse mortgage enables older homeowners (62+) to access and convert part of the equity in their primary home into tax-free cash* without having to sell their home, give up title, or take on a new monthly mortgage payment. The reverse mortgage is aptly named because the payment stream is "reversed." Instead of making monthly payments to a lender, as with a regular mortgage, a borrower with enough equity can very often receive a monthly payment from the lender"

Who may benefit from a reverse mortgage?

A person that is dealing with unexpected hardships including medical expenses, needed home repairs, rising costs of insurance or family emergencies.

A person who has damaged credit or insufficient income to qualify for a conventional home equity loan or a convention loan to refinance their home.

A person who may want to help their family with such things as buying a home or helping with a grandchild's college education.

A person that may be on a fixed income and is having trouble making ends meet month to month.

A person who has the necessary equity in their home but may have gotten behind on their house payments and now may be facing foreclosure.

The examples listed above are only a few of the many situations in which a REVERSE MORTGAGE could be a valuable and helpful resource.

IN MOST CASES A PERSONS INCOME OR CREDIT SCORE WILL NOT AFFECT THEIR ABILITY TO QUALIFY FOR A REVERSE MORTGAGE LOAN.  

Please feel free to call me if you would like more information on Reverse Mortgages or to see if a REVERSE MORTGAGE could help someone you know.

Dan Pena is a Reverse Mortgage Loan specialist with Arbor Mortgage Group and can be reached at 541-977-7944

NMLS# 202226  OR License # ML-4421   

*Consult a tax advisory if you have questions                            

Standing Up for Reverse Mortgages & Honest Lenders

by DAN PENA of Bend

Reference CBN (Cascade Buisness News) article on Abuses Appear in Reverse Mortgage Market.This artilce was written as a responce to that article about Reverse Mortgages and the loan officers who have abused them.

I have been a lender in Central Oregon for the last 20 years. I have worked with many borrowers over that time period from first time buyers to multimillion dollar buyers. I am older than most lenders now and have experienced just about everything,

I was not a subprime lender, but I know many borrowers who purchased more than what they could afford using subprime loans. Just as in anything you can find the bad apples, even in the publication busi­ness. I pride myself on being a good apple and have been the lender to some Central Oregonians for a Reverse Mortgage.

I agree with the article (in a recent Cas­cade Business News), there probably are some crooks out there but I want to stand up for the honest lender and the Reverse Mortgage product. What would you do if your only income was $1,000 a month from social security, you have owned your home for 12 years but little by little you can no longer earn supplemental income and your home is in need of re­pairs......you have no family members that can help you, you are only able to get a little assistance from help resources, you want to stay living in your home and even though you didn't want to you tried to sell it last year and all you got were in­sulting offers?   You probably can't go to the bank and get a second mortgage just for repairing your home, BECAUSE SORRY YOU DON'T QUALIFY!

I was able to help that couple but only af­ter meeting with them four or five times to make sure there were no other alternatives, they also were required to meet with a HUD Counselor before I could do anything that would cost them a penny. They had been paying $625 per month for their house pay­ment and these people were current with their mortgage when I met them.

They struggled monthly and had very little money left after the 15^th of the month. I am proud to have been their lender but I am more proud of them and how hard they worked to survive. They didn't buy a house to flip with no money down, they didn't refinance every two years and get cash out, they bought a home that they wanted to live in and enjoy the rest of their lives.  This couple didn't want to call me but they did, and they did get a Reverse Mortgage as that is what saved them and now they can live in their home for the rest of their lives.

Yes the loan was expensive but not be­cause of the lenders fees, it has more to do with the fees FHA charged. I look forward to getting a call monthly from this couple and if I don't hear from them I call them, yes I got paid for doing the loan (about $1,400) but that was nothing compared to the sat­isfaction I got from helping this couple.

I agree not all lenders are good lenders but I want to stand up for the ones that are good.

Dan Pena is a senior loan consultant and can be reached at 541-977-7944.

Fannie has tightened up it's DU guidelines, now has information on underwriting with past foreclosure or Deed in Lieu's

Starting December 12,2009 Fannie Mae's DU underwriting will make some of the following changes

Total expense revised to 45% with flexibilities offered up to 50%

Minimum credit scores 620 with the exception of DU Refi plus.

Foreclosures must have been at least 5 years ago some other requirements if 5-7 years old. Minimum down payment 10% ,minimum credit score 680. Second home or investment properties are not permitted.

Deed-In-Lieu. If less than 4 years loan case will recieve Refer or Caution/IV recommendation. Max LTV 90% if Deed in Lieu actions were more than 4 years but with in 7 years.

All information is contained on the Fannie Mae site News dated September 22,2009

At least we have some direction

Why do we need Reverse Mortgages ? I just found out, we need them for the couple I met about two months ago when I received a call from a lady that had just spent the last week studying all the information she could about Reverse Mortgages. It was like "Cash Cab" she would ask the questions and I would give her hopefully the correct answer which I was rewarded with knowledge credits. This couple asked all the right questions and really needed some help, they said they did not have gas money until the beginning of the month and would very much like to make an appointment to meet with me but could not until after they received their monthly check in about two weeks. I needed some time to compose myself as talking with them helped me realize that they didn't have any excess funds to treat themselves to a burger and fries , something I took for granted.

Why do we need Reverse Mortgages? This couple as it turns out lived on a fixed income (Social Security) that was less than $1,000 per month and had a house payment in excess of $650.......and they were current on their payments. Like any of us I didn't want them to have to wait or spend their gas on coming to me and made an appointment to visit them, it was a great day for me when I met them as they truly didn't think there was a light at the end of their tunnel and they were hoping I would be that light. Little did they know they were my light in my tunnel, In today's challenging market we all look forward to a new loan but this wasn't just a new loan it was an experience, it felt like finding a waded up $100 bill in my favorite jeans but even better.

Why do we need Reverse Mortgages?, Yesterday was a GREAT DAY, they signed their doc's on their Reverse Mortgage and next month they will get to keep their Social Security check and get an additional check from their Reverse Mortgage......Today they called to thank me for what I get paid to do and said yesterday on their way home they stopped for a burger and fries, but like I said this was not a new loan it was an experience, I look forward in taking them up on sharing a beer with them someday soon, I look forward to seeing them one of these days having a burger and fries, I look forward knowing that every month for the next 15 years they will be getting a direct deposit into their account. Dear Mr. and Mrs. P, thank you for helping me  and I really look forward to the beer and burgers.

Why do we need Reverse Mortgages? I hope you find the answer to this as I have.

Bendinfo.com

  An empty wallet does not mean you don't have friends                                                                     

Bend Oregon is still open for business, contrary to what many others are thinking Bend Oregon still is on the map and Open for business. Like many other cities Bend has taken a hit that hurt, Bend for many years had the OPEN sign on 24 hours per day and all of us enjoyed the  benefits, more restaurants,new stores,rising equity in our homes..... 

Bend was a high roller and being a high roller you also are subject to greater risks. The risks came through like a freight train and the train was rather long. I have lived in Bend for 20+ years and rode the wave up and have stayed to ride the wave down. Bend will not recover quickly but we will recover and will hopefully be a better place. Even with the current economic conditions Bend has a lot to offer

Bend Oregon is still open for business, after all if you enjoy

• the outdoors,
• mountain views,
• clean air,
• drinking cool clean water,
• rafting,
• golfing,
• mountain biking,
• fishing,
• snow skiing,
• wake boarding,
• hiking,
• rock climbing
• River trail walks
• A Pet parade
• Music in the park
• Brew Pubs

yes you can do all of that and more sometimes in the same day, Bend Oregon's Open for Business sign may have a few burnt out bulbs but we are working on fixing them as...

Bend Orgeon is still open for business and I am staying

some helpful links........BendInfo.com, Visit Bend, Bend Nights