I was in foreclosure and got approved for a mortgage?
No way! That's impossible right? But it's true! I was drowning in debt, my medical bills were through the roof and my home was in the process of being foreclosed on. I didn't even have to prove income or have them run my credit report!
This is a real life scenario of a 78 year old widow with a home mortgage of 198,000 that was currently in foreclosure.
Her financial planner suggested that she contact Skyline Financial Corp. who offered her a reverse mortgage. Her home was worth 470,000 and we were able to approve her for a mortgage of 320,540.00. She used this new mortgage to pay off the old mortgage, cover the closing costs of 3,000 and deposit $119,000 in her bank to cover medical bills and have plenty for future living expenses.
A recent Wall Street Journal article reported that high levels of credit card debt and mounting health care bills have contributed to bankruptcies among 55+ year old which are at an all time high.
A reverse mortgage allows a borrower who is 62 years or older to draw a certain amount of equity out of their home. They have the choice to take it as a lump sum or as a line of credit with monthly installments to them. They do not have to make any monthly payments and they do not have to qualify with income or credit. This loan is based only on the borrower's age and equity in the home.
This is a great way to help someone who is facing losing their home, who couldn't get a home equity line of credit because they couldn't afford to pay it back. There are many people that are unaware this program even exists. It's our job to educate and help people that are in a bad situation, and this program could help change their life.