Many senior borrowers got caught up in risky loans such as Option Arms.  Many had no idea what they were getting into.  As their loans "reset" and their values fall, they are in a world of hurt.  I talk to seniors every week who simply can no longer make their mortgage payments.  Some I can help, some I can't.  It is heart-breaking to tell a senior that their lien is so high that not even a reverse mortgage can help them.

However, there are some creative solutions that MIGHT help.  I always ask the borrower if they have family members who might be able to refi their own home or take out a HELOC.  Add those funds to the reverse mortgage funds and we are often able to pay off the risky loan the senior is in.

Here is an example:  Let's say the senior has a loan balance of $220,000 but the reverse mortgage will only cover $200,000 of that amount.  Where do they get the additional $20K to pay off their existing lien?  If the family member can help in any way by refinancing THEIR home, the senior makes the monthly payment.  This new payment will be a LOT smaller than the one they were having difficulty making.  This one solution could save a senior's home!

Of course, not everyone has a family member willing and/or able to help in this way.  Those are the sad cases....My goal is to find as many seniors as possible with risky loans that will reset on them and help them with a reverse mortgage BEFORE the loan balance is so high nothing can be done.

Let's get the word out!

Sylvia J. Williams

reversecoach@yahoo.com