The recent bill that passed which raised the county limits of FHA loans also includes a provision allowing seniors, 62 and older to combine the purchase of a home with a reverse mortgage.
For those of you that do not know how it works, it goes like this:
Say a 70-year old buyer sold their previous home and has $100K to put down on a home. Let's say they are interested in a 200K property. They very well may qualify for a reverse mortgage which will alleviate any future mortgage payments. In some respects, it would be the equivalent of purchasing a home for 1/2 price. No more payments for the rest of their life! ( other than taxes and homeowners insurance)
Scenario #2-the same buyer doesn't really want to take on much of a mortgage so they are instead shopping for a $150K home in order to keep those payments low. Again, instead of financing anything, they could now qualify for a higher-priced home ($200K)-sounds better to you as an agent and in all reality, would probably make the client happier!
One more example- say the same buyer has the full amount to buy a $200K home;cash purchase. Why would they?? They can now put $100K down along with the reverse mortgage, and not make one mortgage payment! They then have $100K to do with as they please-put in the bank as a nice next egg, invest, buy long-term health care coverage, travel, etc. They can truly enjoy the golden years.
As with all of the examples above, they have alleviated the costs of 2 transactions which would save them 1000s of dollars.
I will say these transactions will not be simple but then again, neither are short sales or modifications and we've all become more familiar with them in recent months. It will be imperative that you do your homework and learn this program in order to accommodate your client. In addition, you must work with a lender that knows the program inside and out or the deal will surely fall through. Oh, by the way, many Reverse Mortgages are due to referrals so keep that in mind.
I have performed close to 200 Reverse Mortgage closings in the last 14 months. I will gladly help any of you that would like more information or assistance with clients that may be a fit for this program.
The recent bill that passed which raised the county limits of FHA loans also includes a provision allowing seniors, 62 and older to combine the purchase of a home with a reverse mortgage.
For those of you that do not know how it works, it goes like this:
Say a 70-year old buyer sold their previous home and has $100K to put down on a home. Let's say they are interested in a 200K property. They very well may qualify for a reverse mortgage which will alleviate any future mortgage payments. In some respects, it would be the equivalent of purchasing a home for 1/2 price. No more payments for the rest of their life! ( other than taxes and homeowners insurance)
Scenario #2-the same buyer doesn't really want to take on much of a mortgage so they are instead shopping for a $150K home in order to keep those payments low. Again, instead of financing anything, they could now qualify for a higher-priced home ($200K)-sounds better to you as an agent and in all reality, would probably make the client happier!
One more example- say the same buyer has the full amount to buy a $200K home;cash purchase. Why would they?? They can now put $100K down along with the reverse mortgage, and not make one mortgage payment! They then have $100K to do with as they please-put in the bank as a nice next egg, invest, buy long-term health care coverage, travel, etc. They can truly enjoy the golden years.
As with all of the examples above, they have alleviated the costs of 2 transactions which would save them 1000s of dollars.
I will say these transactions will not be simple but then again, neither are short sales or modifications and we've all become more familiar with them in recent months. It will be imperative that you do your homework and learn this program in order to accommodate your client. In addition, you must work with a lender that knows the program inside and out or the deal will surely fall through. Oh, by the way, many Reverse Mortgages are due to referrals so keep that in mind.
I have performed close to 200 Reverse Mortgage closings in the last 14 months. I will gladly help any of you that would like more information or assistance with clients that may be a fit for this program.
Can anyone explain the changes (in a nutshell) for fees that can be charged for Reverse Mortgage Counseling?
I am now hearing that HUD is "requiring" the fee to be paid up front?? I don't want to pass along incorrect information but I received it from a mortgage company today.
Does this apply to ALL counseling agencies or are there still agencies out there that are offering free of charge?
Not only that but I'm told the fee is up to $125.00-how is that based? Is this based on income level and if so, what are the limits, etc?
The conference call on December 3 at 2:00 p.m. EST will discuss the proposed uniform closing instructions that have been developed by ALTA, the Mortgage Bankers Association, and the American Escrow Association. The new instructions will improve efficiencies and lower costs to the industry and consumers by replacing countless sets of instructions with two standard sets. Comments on the instructions will be collected until early next year, after which they will go into effect. To register and learn more about the online workshop, "Introducing the New Proposed Uniform Closing Instructions," please go to www.campusmba.org or call (800) 348-8653. ]
An online workshop/ conference call will commence today, December 3 at 2:00 p.m. EST to discuss the proposed uniform closing instructions that have been developed by ALTA, the Mortgage Bankers Association, and the American Escrow Association. The new instructions are designed to improve efficiencies and lower costs to the industry and consumers by replacing countless sets of instructions with two standard sets.
This is an agreed upon draft which has been distributed for final comments to the settlement services industry. Send your comments to one of the website locations set up by the MBA, ALTA, OR AEA on or before January 30, 2008.
To download a set of the proposed instructions, click on the link below or call (800) 348-8653. ]
The conference call on December 3 at 2:00 p.m. EST will discuss the proposed uniform closing instructions that have been developed by ALTA, the Mortgage Bankers Association, and the American Escrow Association. The new instructions will improve efficiencies and lower costs to the industry and consumers by replacing countless sets of instructions with two standard sets. Comments on the instructions will be collected until early next year, after which they will go into effect. To register and learn more about the online workshop, "Introducing the New Proposed Uniform Closing Instructions," please go to www.campusmba.org or call (800) 348-8653. ]
An online workshop/ conference call will commence today, December 3 at 2:00 p.m. EST to discuss the proposed uniform closing instructions that have been developed by ALTA, the Mortgage Bankers Association, and the American Escrow Association. The new instructions are designed to improve efficiencies and lower costs to the industry and consumers by replacing countless sets of instructions with two standard sets.
This is an agreed upon draft which has been distributed for final comments to the settlement services industry. Send your comments to one of the website locations set up by the MBA, ALTA, OR AEA on or before January 30, 2008.
To download a set of the proposed instructions, click on the link below or call (800) 348-8653. ]
An online workshop/ conference call will commence today, December 3 at 2:00 p.m. EST to discuss the proposed uniform closing instructions that have been developed by ALTA, the Mortgage Bankers Association, and the American Escrow Association. The new instructions are designed to improve efficiencies and lower costs to the industry and consumers by replacing countless sets of instructions with two standard sets.
This is an agreed upon draft which has been distributed for final comments to the settlement services industry. Send your comments to one of the website locations set up by the MBA, ALTA, OR AEA on or before January 30, 2008.
To download a set of the proposed instructions, click on the link below or call (800) 348-8653. ]
http://abcnews.go.com/Nightline/story?id=3892797&page=1 Here is a story that hits a little too close to home. A Brandon, FL mortgage company along with Countrywide was the target of this Nightline feature story tonight, yet another sad story in the news regarding loans that most would agree shouldn't have taken place. Quoted as on the "fasttrack to foreclosure", this 79 year-old retired postal worker believes he was "swindled" into a 1% teaser rate that soon escalated to 8.75% before he made his first payment. The loan was transferred to Countrywide, whose stock plummeted to a closing rate of under $11.00 per share today. Now Countrywide gets to answer the majority of questions regarding this account as well as deal with the negative press.
One page of the document lists Jordan as retired, but elsewhere, it says he was earning $8,900 a month. When asked why he would sign documents that he hadn't "thoroughly" read, the borrower's attorney states the following: "They give these stacks of papers to a homeowner, in a closing that lasts about 45 minutes, and what they do is they sit there and say, 'This is what this page says, sign here,'" Faux said.
More bad news for Countrywide, in addition to the falling stock prices and 1000's of employees recently hitting the unemployment line-North Carolina treasurer Richard Moore is taking aim at Countrywide CEO Angelo Mozilo, who is now being informally investigated by the SEC for selling a half million shares of company stock while its value plummeted.
http://abcnews.go.com/Nightline/story?id=3892797&page=1 Here is a story that hits a little too close to home. A Brandon, FL mortgage company along with Countrywide was the target of this Nightline feature story tonight, yet another sad story in the news regarding loans that most would agree shouldn't have taken place. Quoted as on the "fasttrack to foreclosure", this 79 year-old retired postal worker believes he was "swindled" into a 1% teaser rate that soon escalated to 8.75% before he made his first payment. The loan was transferred to Countrywide, whose stock plummeted to a closing rate of under $11.00 per share today. Now Countrywide gets to answer the majority of questions regarding this account as well as deal with the negative press.
One page of the document lists Jordan as retired, but elsewhere, it says he was earning $8,900 a month. When asked why he would sign documents that he hadn't "thoroughly" read, the borrower's attorney states the following: "They give these stacks of papers to a homeowner, in a closing that lasts about 45 minutes, and what they do is they sit there and say, 'This is what this page says, sign here,'" Faux said.
More bad news for Countrywide, in addition to the falling stock prices and 1000's of employees recently hitting the unemployment line-North Carolina treasurer Richard Moore is taking aim at Countrywide CEO Angelo Mozilo, who is now being informally investigated by the SEC for selling a half million shares of company stock while its value plummeted.
I am wondering what the experience to date, has been with the authorization of EClosings/electronic signatures for loans in PA. I am curious as to if there has been much interest in PA to facilitate closings electronically and if so, have there been many glitches along the way? Is this something that is stipulated by the lender or something offered by title companies as an option?
A similar bill has passed in Florida and will go into effect January, 2008.
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