If you're over the age of sixty-two and facing a mortgage foreclosure, applying for one of the U.S. Department of Housing and Urban Development's (HUD) home equity conversion mortgages (HECM) may be the your ticket out of financial ruin. Once you're approved for one of the reverse mortgages, which are insured by the Federal Housing Administration (FHA), you can stop the foreclosure process and save your home.
To be eligible for a reverse mortgage, your home must be a single-family residence. An individual unit in a condominium complex is also eligible as long as the building does not include more than four residences. One other eligible property type is a FHA-approved mobile home.
When you obtain a reverse mortgage, your new home loan will pay off the loan that was in danger of default. No other payments on that old loan will be needed. Then, by obtaining a reverse mortgage loan, you are essentially deferring your mortgage payments for the rest of your life. You are never required to make a payment on a reverse mortgage. The reverse mortgage debt is settled when you are no longer using your home. At that point, the property is sold and the proceeds from the sale are used to pay off your reverse mortgage.
Funding your home with a reverse mortgage allows you to keep your home as long as you are living in it. Married borrowers can keep their home as long as one of them remains in the home. There is no expiration date on a reverse mortgage. Even if you have used all of the proceeds of the mortgage, you can continue to enjoy your house without worrying about how you're going to settle your debt.
Although you will not be making any mortgage payments during the life of your reverse mortgage, there are certain financial requirements that have to be met by the borrower. First, the borrower must maintain continuous insurance coverage on the home. This coverage may include premium mortgage insurance, as well as insurance that covers the house in the event of a fire or flood. In addition, the borrower must make all of the tax payments due on the property. Finally, the homeowner must keep the home in good repair.
Potential applicants in metro Detroit who are interested in receiving reverse mortgage information should contact us today. One of our representatives will be happy to answer all of your questions and get you started on the path to your reverse home mortgage. In no time, your foreclosure worries will be over and you can get back to enjoying life in your own home.
You can email us at GCCPropertySolutions@yahoo.com
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