Special offer

The New Reverse Mortgage

By
Real Estate Agent with Seven Gables Real Estate

Recently my mother Jinny, who lives in New York, brought up the subject of a Reverse Mortgage.  Like many seniors today she is faced with rising costs of living, while her income has remained fixed and her investments have declined in value.  However, Mom does have a lot of equity in her home.

 We all remember just a few short years ago, "Reverse Mortgages" were something to be evaded at all costs-like a dirty word.  With Seven Gables new relationship with Bank of America, I called Jim Schwegman to explain to me how reverse mortgages work and I found out that times have changed.  Jim explained that a Reverse Mortgage is a home equity loan that allows you to access a portion of the equity in your home without having to make monthly payments.  You always retain title to your home and this program is fully insured by HUD (Housing and Urban Development).

Requirements:   Each homeowner must be 62+ with enough equity in their home. Unlike some equity loans, there are no income or credit scores to qualify. 

Proceeds can be used for any purpose: 

  • Paying off a current loan
  • Paying off debt,
  • Medical bills,
  • Home improvements
  • Or even, Purchasing a new home!
  • Down-sizing from a Larger home to a smaller one

 If you feel this type of loan could help you, or someone you know, let me introduce you to Jim Schwegman from Bank of America who is offering this program to qualifying Seniors. 

Call or email us if you would be interested in attending a seminar, or in having a private consultation, at no charge to you! 

Posted by

Richard Shuman
The Only B.S. I Have is from the University of Massachusetts - Lake Mary, FL
Real Estate Broker - Orlando Area - Love Referrals

 

thanks for sharing the info

 

Aug 06, 2010 10:28 AM
Melissa Towbin
Real Estate One, LLC - Henderson, NV

Interesting.  My parents did a R.M. and HUD/Wells holds title to the home.  Also, where homes are so under water how are they working around that?  Las Vegas is an example, they are buried even if they owe nothing.  The values are not there.  The program seems to work with age vs value, there is some equation.  HUD will have a nightmare with these homes going back to them.  Hope mortgage insurance is still around for awhile, they will need it here.  I hear you can short sale a R.M., the bank give a total 5%, includes sellers costs.

Aug 06, 2010 10:29 AM
Rosalinda Morgan
Brookville, NY
"The Rose Lady"

I heard the upfront interest and other costs are pretty hefty and that's the reason some seniors are avoiding it.   

Aug 06, 2010 10:35 AM
Patrick White
Home Driven Realty, Inc - Baldwin, NY
Driven to bring New Yorkers home

Hi Lesslie,

Thanks for the post. Have a great day.

Aug 06, 2010 11:15 AM