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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