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Reverse Mortgages and Foreclosures

By
Mortgage and Lending with Keller Williams Realty

Do you have a senior citizen client in foreclosure? Did you know that if your client is over 62, has sufficient equity, and lives in the home, they can obtain a Reverse Mortgage to cure that foreclosure?

It doesn't matter what the seniors FICO is or isn't. It doesn't matter what their income is or isn't. There is no income or credit qualification for this program. The only reason I would look at a client's credit report is to look for judgements or tax liens.

My first foreclosure file was something else. My client had so much deferred maintenanance it wasn't funny. Her FICO was below 500 and her income couldn't be documented as she worked taking care of other seniors as well as cleaning houses. We ended up curing her foreclosure, getting her house fixed up and getting some much needed cash in her pocket. The lack of stress in her voice was fantastic to hear.

I got into this business to help people number one and to make a living number two.

I am in the middle of another foreclosure file but that'll be the subject of another blog.

Hope you're having a wonderful day!

Catherine :-)

Ted Baker
Carmody and Associates LLC - Winter Haven, FL
MidFloridaMediation.com

Catherine - for the creative thinker presented with the right situation, the reverse mortgage can be an excellent solution.  I have heard all the complaints about fees and I understand that it is debt that has to be paid at some time - but for the senior who may not have adequate resources for retirement and is trying to stay in their family home (or downsize into a retirement house), it is a viable solution that uses the equity in the home to provide both cash flow (lump sum, monthly or combination) and relief from the monthly mortgage payment.  For seniors on a fixed income that are struggling to make ends meet, it can be a significant improvment in their quality of life.  And the negative amortization is guarenteed not to exceed the value of the home.  

You have the right attitude toward your clients and the reverse mortgage is the right financial solution for many of them.

Aug 26, 2007 12:27 AM
Patsy Ittner, Your Premier Broker Selling St. Augustine Real Estate
Little Fox Realty - Saint Augustine, FL
Catherine:  You are the kind of Realtor who makes me proud to be a Realtor.  I know about these mortgages, and they are a God-send for some.  May I say, YOU have the right attitude.
Aug 27, 2007 02:32 AM
Catherine Beers
Keller Williams Realty - Apple Valley, CA

Ted and Patsy,

Thank you so much for your feedback. Its always nice to get complimented by your peers. :-)

Catherine  

 

Aug 28, 2007 09:13 AM
Susan Peters
Dove Realty Inc. - Seattle, WA
The Better it Looks the Better it Sells

Hi Catherine,

I just completed my SRES designation and we had a mortgage broker make a presentation on reverse mortgages. It was really enlightening. For some of our clients it will be a life saver.

Aug 28, 2007 03:06 PM
Catherine Beers
Keller Williams Realty - Apple Valley, CA

Susan:

I agree, its an awesome program! There is nothing like making a difference in someone's life!

 

 

 

Aug 29, 2007 01:16 PM
Ronald Gillis
Southwest Florida Notaries (Mortgage Notary Signing Agent) - Port Charlotte, FL
CNSA Southwest Florida. Notaries, Port Charlotte, 941-7-NOTARY

Just as a point of clarification - the negative amortization CAN exceed the value of the home, BUT that is one of the reasons why mortgage insurance is required on reverse mortgages.  Although most do not get to the value of their home - statistically speaking that is, but if the loan value gets to 98% of the home value, HUD assumes the loan, and of course the mortgage insurance will also kick in the shortage of home value/loan balance once the loan is satisfied.  That is one of the reasons there are always two mortgages for HUD backed reverse mortgages.  The other big reason would be if the lender goes belly-up, they could immediately take over servicing the loan so the borrower is not stuck waiting weeks or even months to get money - if they are receiving payments, or have line of credit reverse mortgage.  One other important reason, it prevents heirs of the borrower from being burdened with a loan that exceeds the home value.  If you want to learn this, and LOTS more, check out & take the HUD training.  It is not requirement for loan signings, but it was interesting and very informative!

Signature

Aug 29, 2007 02:28 PM