Greg Plum's (gplum) Blog

Top 10 Reasons Realtors Need to Know About Reverse Mortgages

Greg Plum (Academy Mortgage, LLC) — Tue, 21 Oct 2008 02:27:43 -0700

1. Seniors can use this product to help their kids with a down payment to purchase a new home. 2. With the proceeds from a Reverse Mortgage senior homeowners can help children afford house payments by extinguishing their debts. 3. Seniors can use this program to buy a home more suitable to their changing needs or even buy a vacation home. 4. Professionalism - it's an easy solution for a senior who doesn't qualify to sell and downsize. At the same time, it creates trust and builds a future listing while expanding your referral base; all by helping seniors do what's best for them. 5. Reverse Mortgages can help homeowners afford home improvements that will increase a home's value when you prepare to list the property. 6. The money helps seniors maintain pride of ownership and obtain the highest value in the future. 7. It offers a new marketing opportunity; contact current and past clients making them aware of Reverse Mortgages, how the process works for senior homeowners and what it can do for them and their family. 8. It's a financing tool. (Eliminates financing contingencies) 9. The Reverse Mortgage gives more purchasing options to your senior clients - Baby Boomers will begin to qualify in 2008. 10. In today's market, it's something positive to talk about! Greg Plum is a reverse mortgage specialist with over 10 years' mortgage experience. Academy Mortgage has been assisting seniors with their reverse mortgage needs for 18 years. For more information, contact Greg at gplum@academyloans.com or 1-877-240-7020.

Types of Homes that Qualify for a Reverse Mortgage

Greg Plum (Academy Mortgage, LLC) — Wed, 27 Feb 2008 13:47:46 -0800

While typically a reverse mortgage is done on a single-family detached residence, several other property types may be eligible. This little known fact can allow many more senior homeowners to reap the benefits of a reverse mortgage.The important thing to remember is that no matter what type of property, in nearly every case it must be the primary residence of the borrower(s). For example, townhomes (attached units) often qualify for FHA HECM financing. In many instances, condominiums are eligible for FHA reverse mortgage financing, provided they meet certain criteria.Two-to-four unit properties are allowed under the FHA HECM program if they meet zoning regulations and at least one unit is occupied by the borrower(s).Manufactured housing and modular homes can secure reverse mortgages, providing they meet the criteria set by FHA and of course, are the primary residence of the borrower(s).Even a mobile home could possibly qualify, although the borrower must own the land (no lot leases allowed) in addition to meeting other criteria established by FHA.On a case by case basis, some proprietary products (those where the lender sets the rules) a second home (not an investment property) may qualify, but the lender will set the parameters for that type of home.Be sure to check with your reverse mortgage consultant during your initial conversation to assure that your property qualifies for reverse mortgage financing - most do, some don't and it's crucial to know if your property is acceptable security for reverse financing.For more information, visit this California Reverse Mortgage Lender or www.areversemortgagelender.com or call 877-240-7020.

How Can Reverse Mortgage Proceeds be Used?

Greg Plum (Academy Mortgage, LLC) — Mon, 18 Feb 2008 14:25:51 -0800

In a few words... Any Way You Want! However, let's explore the ways that the funds can be taken, since that impacts the cash available and thus spending choices. Lump Sum: The first choice is to take all the available funds at once. This is the option chosen when there the mortgage amount owed on the property is close to the amount of reverse proceeds available. For many folks, just paying off that existing mortgage and putting that monthly mortgage payment back in their pocket is a life changing thing.Line of Credit: The second option is a line of credit that remains within the reverse mortgage. This line is accessible any time the borrower needs it and in any amount. A significant benefit to the FHA HECM reverse mortgage is that the line of credit contains a "growth" factor. Simply put, the unused portion of the line of credit grows- that's right- it actually increases each year. Think of it as a growing nest egg for future needs.Monthly Draw: The third way to take reverse mortgage funds is by way of a monthly draw. Each month, a predetermined amount is disbursed to the borrower(s) as long as one of them lives in the home as the primary residence. This is called "tenure". The borrower(s) may also opt for a "term" amount. Let's say that the senior only plans to live in the home for 10 years. The funds are calculated so that at the end of 10 years, the disbursements will stop. Remember, just because the funds stop, the borrower does not need to vacate the home. It is still the residence and can continue to be occupied.To top this all off, the funds can be taken in any combination of the above: small lump sum combined with line of credit, monthly amount combined with small lump sum, etc. And even better, at the borrower(s) request, the plan can be changed. Clearly the reverse mortgage is set up to allow the senior to have both the benefit of the funds and control of their distribution.For more information on the California Reverse Mortgage Lender, Academy Mortgage, contact gplum@academyloans.com, or 877-240-7020.

Change is in the Wind for Reverse Mortgage Borrowers!

Greg Plum (Academy Mortgage, LLC) — Mon, 28 Jan 2008 13:29:14 -0800

Just in case you have not heard, the reverse mortgage industry is up for a facelift. Some potential new enhancements include increasing the lending limit and reducing the origination fees seniors are required to pay to take advantage of this unique tool that only they are able to access. Seniors may even be able to use an FHA HECM for the purchase of a home! Keep an eye on these changes or contact me for more information. We are Academy mortgage, a california reverse mortgage lender focusing on helping those who may need it most.

Reverse Mortgage Help

Greg Plum (Academy Mortgage, LLC) — Sun, 23 Dec 2007 15:29:48 -0800

Hello, All!This is the first group that I have joined in Active Rain. I selected this one as it appeared to be more for sharing intelligence, rather than sales people selling to sales people! I have been involved with reverse mortgages for 3 years now. This doesnt make me the ultimate expert, but I do have a jump on many others who are just now seeing how important this tool can be to the right consumer. Please feel free to contact me should you want any information on how reverse mortgages work. I am happy to oblige!Happy Holidays!Greg Plum, Reverse Mortgage SpecialistAcademy Mortgage, gplum@academyloans.com, 877-240-7020

Reverse Mortgage FAQ

Greg Plum (Academy Mortgage, LLC) — Sun, 23 Dec 2007 15:14:20 -0800

For more information:gplum@academyloans.comwww.acaliforniareversemortgagelender.comwww.areversemortgagelender.com877-240-7020 What are the Benefits of a Reverse Mortgage? There are several benefits associated with the reverse mortgage. First, there are no income or credit requirements when qualifying for this loan. Second, the money received from this loan is not taxable as income¹. Third, the borrower has no repayment obligations until the property is no longer his residence. Thus, the borrower may live in the property until his death without ever making a payment back on the loan. Another significant benefit of this loan is the security of knowing that reverse mortgages are fully insured under the federal government's Federal Housing Administration's mortgage insurance program. ¹ Consult your tax advisorHow Will a Reverse Mortgage Affect My Social Security Benefits?Reverse mortgage payments do not affect Social Security or Medicare benefits because those benefits are not based on the assets of the borrower. However in certain programs, beneficiaries must keep their liquid assets under certain limits. Generally, if the proceeds from the reverse mortgage are not spent in the month received, then these funds are considered part of the liquid assets and may adversely affect eligibility for SSI and other programs. Therefore, a borrower who also receives SSI or participates in other income or need based programs should never draw more money than the borrower actually needs to spend that month. Regulations for state-administered programs such as Medicaid and food stamps all have different eligibility requirements. Accordingly, it is suggested that the borrower consult their attorney, financial advisor, or a benefits specialist at the local area Agency on Aging or the local offices for these programs to determine how reverse mortgage payments may affect the borrower's particular situation. What are the "Out of Pocket" Costs?Typically there is only one, an application fee that usually includes the cost of an appraisal and a credit report. (Other loan costs may be financed with your Reverse Mortgage.) Will the Borrower be Taxed on the Proceeds from the Reverse Mortgage? No, the borrower will not be taxed on the principle received from the reverse mortgage because this is a loan and therefore is not taxable as income. What Types of Payment Plans are Available? A borrower may choose among the following payment options:1. The Monthly Payment option allows the borrower to choose to receive (a) (the Tenure Plan) monthly payments of a certain calculated amount over the borrower's lifetime or (b) (the Term Plan) a certain amount that is chosen by the borrower over a term of years until the funds are exhausted. This monthly payment option enables the borrower to supplement his income with payments on the first of each month for either as long as the borrower resides in the home or until the funds are exhausted. Thus, even if the borrower has used all the available funds, the loan does not become due until the borrower no longer lives in the property as his principle residence. 2. The Lump Sum Payment option allows the borrower to take all of the available funds at the time of settlement. Again, the loan does not become payable until the borrower no longer resides in the property as his principle residence. 3. The Line of Credit option places the reverse mortgage proceeds in an account that is available to the borrower whenever a need arises. The borrower determines when and how much money is to be withdrawn from the account. This enables the borrower to control the accrual of interest because interest is charged only on the money the borrower has taken. Additionally, the funds that remain in the Line of Credit will continue to grow, making more funds available to draw on at a later time. Regardless of the payment option chosen, the borrower may use the available funds for any reason, whatsoever. It should also be noted that each individual case is different. A great feature of the reverse mortgage is that the borrower may combine any or all of these options in order to customize a payment plan that will meet the borrower's unique financial situation.Can the Senior be Forced to Sell or Vacate the Home if the Money Owed on the Loan Exceeds the Value of the Home? A reverse mortgage borrower has three (3) responsibilities:1. Occupy the property as his/her primary residence; 2. Keep homeowner's insurance on the property throughout the life of the loan; and 3. Pay all real estate property taxes and other property assessments throughout the life of the loan. In general, as long as the borrower can satisfy these requirements, the borrower will NEVER be forced to sell or vacate the property. Accordingly, even if the mortgage balance exceeds the property value, or if the borrower has exhausted all of the available funds, the borrower can NEVER be forced to sell the home.Additionally, when the loan does finally become due, the reverse mortgage lender is only secured to the real property. Thus, the lender can only look to the value of the real estate for repayment of the reverse mortgage and not any other asset in the borrower's estate. Furthermore, neither the borrower nor the borrower's estate will be subject to any claim that may arise if the value of the property is less than the payoff of the reverse mortgage. FHA mortgage insurance will cover any balance due the lender.How Does a Reverse Mortgage Differ from a Home Equity Loan? While both reverse mortgages and home equity loans enable senior homeowners to turn the equity in their home into spendable dollars, there are important differences between these two types of mortgages. First, home equity loans require regular monthly payments in order to repay the loan. These payments begin as soon as the loan is settled. In contrast, a reverse mortgage does not have to be repaid as long as the home remains the senior's primary residence. In other words, the loan becomes due only when the senior no longer occupies the property.Second, home equity loans are based on the borrower's income and credit history. A home equity loan borrower may be required to requalify for the home equity loan each year. If the borrower does not qualify, than the lender may require that the loan be paid in full immediately. However, income and credit are not obstacles for seniors who want a reverse mortgage because there are absolutely no income or credit requirements to qualify. It should also be noted that there are no requalification requirements.Will the Borrower's Heirs Owe Anything to the Lender Upon the Death of the Borrower? Upon death, the loan balance becomes due and payable. The estate may repay the loan by either selling the home or by refinancing the mortgage. If the loan exceeds the value of the property, the estate will owe no more than the value of the property. No additional financial claims may be made against the heirs or the estate. In a worse case scenario, nothing more than the value of the real estate is ever at risk to the borrower's heirs because of a reverse mortgage. Will Reverse Mortgage Payments Affect Social Security, Medicare, Supplemental Security Income (SSI) or Medicaid Benefits? Reverse mortgage payments do not affect Social Security or Medicare benefits because those benefits are not based on the assets of the borrower. However in certain programs, beneficiaries must keep their liquid assets under certain limits. Generally, if the proceeds from the reverse mortgage are not spent in the month received, then these funds are considered part of the liquid assets and may adversely affect eligibility for SSI and other programs. Therefore, a borrower who also receives SSI or participates in other income or need based programs should never draw more money than the borrower actually needs to spend that month. Regulations for state-administered programs such as Medicaid and food stamps all have different eligibility requirements. Accordingly, it is suggested that the borrower consult their attorney, financial advisor, or a benefits specialist at the local area Agency on Aging or the local offices for these programs to determine how reverse mortgage payments may affect the borrower's particular situation.

Reverse Mortgages in Several Additional States

Greg Plum (Academy Mortgage, LLC) — Sun, 23 Dec 2007 14:49:41 -0800

Academy Mortgage is a reverse mortgage lender that assists reverse mortgage candidates in the following states: Colorado, Arizona (AZ-BK090611), California, Tennessee, Kentucky, Florida, New Jersey, Maryland, Delaware, Pennsylvania, District of Columbia, Virginia, North Carolina, and South Carolina. If we can be of any assistance, even to just explain the basics of a reverse mortgage, please call me on 877-240-7020.

Reverse Mortgages in Several Additional States

Greg Plum (Academy Mortgage, LLC) — Sun, 23 Dec 2007 14:48:56 -0800

Reverse Mortgages in Several Additional States

Greg Plum (Academy Mortgage, LLC) — Sun, 23 Dec 2007 14:48:46 -0800

Reverse Mortgage Lender Comes to Delaware

Greg Plum (Academy Mortgage, LLC) — Tue, 20 Nov 2007 14:55:50 -0800

Academy Mortgage, LLC, one of the country's top reverse mortgage lenders comes to Delaware. Headquartered in Maryland and licensed in 12 states across the country, we provide a local presence with a highly personalized level of service often overlooked by larger lenders. If you or your clients are interested in more information on the benefits of a reverse mortgage, please visit www.areversemortgagelender.com or call 800-355-1211. Ask for Greg.

Are Reverse Mortgages for Everyone?

Greg Plum (Academy Mortgage, LLC) — Sat, 17 Nov 2007 23:39:17 -0800

Of course not! Just because you may meet the minimum age requirement of 62 years of age, that does not mean that a reverse mortgage is right for you. One of the first questions my clients ask me is "what's the catch"? Well, there is no "catch", but there are factors to consider. These include cost of obtaining a reverse mortgage, and how it will affect your overall financial picture. The only way to answer the question if it is right for you, you simply must speak with a qualified reverse mortgage specialist. For more information, please visit my site, http://www.acaliforniareversemortgagelender.com/ or call 1-800-355-1211.