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Stop Foreclosure with a Reverse Mortgage

By
Mortgage and Lending with SMP Mortgage, Inc NMLS ID #276668

If you are age 62 or over, and are having trouble making your mortgage payments, you may want to consider a reverse mortgage as a way out.

The proceeds from a reverse mortgage can be used to pay off the current lender, allowing you to stay in your home and never have another mortgage payment. My post on reverse mortgage basics will give you some information on how a reverse mortgage works.

Investigate your options with a reverse mortgage as soon as possible. Once your mortgage is in default, interest, attorney and other fees add up quickly, making the payoff amount several thousand dollars higher.

In order to use a reverse mortgage to prevent foreclosure, you will need to have a decent amount of equity in your home. With a reverse mortgage, you are eligible for a benefit amount of anywhere from 60-80% or so of the appraised property value. The older you are, the more $$ you will be eligible for.

Use this reverse mortgage calculator to see what you may qualify for. Remember, reverse mortgages do not have income or credit score requirements for qualification.

If the reverse mortgage calculator shows that you do not qualify for enough money to pay off your mortgage, speak with a mortgage professional anyhow. Lenders prefer to avoid foreclosure...the process is very expensive for them. It may be possible that your mortgage professional will be able to negotiate with the lender to accept a payoff that is less than the loan balance due.



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South Florida Mortgage Lady is a mortgage broker in Boca Raton, Florida. She works with an FHA approved mortgage company, and has completed many reverse mortgage transactions.
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Call Cheryl Hale today to work with her in reaching your real estate goals: 734-404-2413

Matthew J Blum - (retired from the business)
Palm Beach Gardens, FL

Cheryl, Great post with really good advice.  I think the most important thing is for people to consult their Licensed FULL-TIME Mortgage Professional before getting into panic mode.

Dec 29, 2007 12:56 AM
Cheryl Hale
SMP Mortgage, Inc - Plymouth, MI
Mortgage Loan Originator NMLS#276668

Matt,

Thanks!  You are so right..this industry has no room for fly by nights. And consumers should ask for advice at the first sign of trouble.  There are a lot of options available and a licensed professional can provide the guidance they need.

Dec 29, 2007 01:10 AM
Katerina Gasset
The Gasset Group & Get It Done For Me Virtual Services - Provo, UT
Amplify Your Real Estate & Life Dreams!
Cheryl- Reverse mortgages are such a great option for the over 62 set! Thanks for getting this out there! Katerina
Jan 04, 2008 02:46 AM
Kate Bourland
Marketing with Kate - Redding, CA
Onlilne Marketing Mobile Marketing
Now this is creative, I suggest posting this into the creative financing forum.  Great Post
Jan 04, 2008 02:48 AM
Cheryl Hale
SMP Mortgage, Inc - Plymouth, MI
Mortgage Loan Originator NMLS#276668

Katerina: Thanks!  I am trying to get the word out.  I think there are a lot of seniors out there who refinanced into ARM's and are struggling now.  I don't think too many are aware of this option.

Kate: Thanks for commenting.  I am going to take your suggestion and post this to the creative financing forum - great idea! I want to get the word out as much as possible.

Jan 04, 2008 05:29 AM
Mark and Tana Hunt
Team Price Real Estate/Dan Price Broker - Austin, TX
Born and raised in Austin, WE KNOW THIS PLACE!
My parents did a reverse mortgage about 3 years ago and it was THE BEST thing they have ever done...
Jan 04, 2008 03:08 PM
Cheryl Hale
SMP Mortgage, Inc - Plymouth, MI
Mortgage Loan Originator NMLS#276668

Tana,

Thanks for sharing that.  I still run in to a lot of people who have negative perceptions of a reverse mortgage. They really do make sense for seniors who are struggling to pay the bills every month.

Jan 05, 2008 03:08 AM
Mark and Tana Hunt
Team Price Real Estate/Dan Price Broker - Austin, TX
Born and raised in Austin, WE KNOW THIS PLACE!
Yes they do!  I have tried to get in to the whole Reverse Mortgage Groove but I can't find anyone who needs a closer here in Austin for them.  I just would like to be a part in helping people out.  My parents don't know what they would have done without it.  At first they were all worried about how I would fee if they didn't leave me the house and I was like, ARE YOU KIDDING? Do it! I would rather have them here, with me, happy with less stress than having a house when they are gone...
Jan 05, 2008 06:21 AM
Cheryl Hale
SMP Mortgage, Inc - Plymouth, MI
Mortgage Loan Originator NMLS#276668

Tana,

Thanks so much for your input. I am working with a lady now who is in deep credit card debt, and a reverse mortgage will be a huge benefit for her.  But. she is so worried about leaving something to her heirs!! I understand that's important, but it's also important for her at 70 years old to be able to relax and enjoy her life without struggling.. she was considering a bankruptcy..there is no reason for her to do that.

Jan 05, 2008 06:55 AM
Endea Thibodeaux
Lanham, MD
Solar Energy Consultant, CDPE, CLHMS
Good post!  You need to use all the options you have available these days!
Jan 22, 2008 01:24 PM
Cheryl Hale
SMP Mortgage, Inc - Plymouth, MI
Mortgage Loan Originator NMLS#276668

Endea,

Thanks..these folks need to know that they have options available.  If they have equity, a reverse mortgage probably doesn't even cross their mind.  They just think they can't refinance because their credit has been damaged from the delinquent mortgage. And why incur new debt that they can't afford??

Jan 23, 2008 11:09 AM