There’s enough negative press out there about Reverse Mortgages, here’s some good news where a Reverse Mortgage Saves Senior from Foreclosure. One of the greatest features of a government insured HECM mortgage is its’ ability to help a senior save their home from the fate of foreclosure.
I recently had a customer who lost her husband to cancer. She also lost his income and was horrified to find out that their life insurance policy had been canceled. She was left in a situation where she was unable to pay her mortgage and other household expenses.
After countless attempts to modify her loan, she faced the fact that her home was in foreclosure and she was running out of options. Sure, she could have sold her house and relocated to a much lesser rental, but like most seniors, the thought of being forced to re-locate is terrifying.
Unlike most other loan programs, a reverse mortgage offers a solution that can turn these lemons into lemonade. The Reverse Mortgage the borrower qualified for was able to provide the following;
- Paid off the existing mortgage that was in foreclosure with a HECM reverse mortgage that doesn’t require any monthly payments
- Created an escrow account for future taxes and insurance payments
- Provided immediate cash at closing
- Set up an equity line of credit for future living needs
Of all the loans that I have done over my career, there is nothing more rewarding than helping a senior save their home and provide the financial freedom for retirement. This story highlighted some of the benefits of a reverse mortgage. Because of the unorthodox nature of the loan, many people have the opinion that there must be a catch. A reverse mortgage is a loan that is insured by the government to help seniors have a better life.
Like most products, it’s not for everyone. But for seniors that can’t afford their mortgage payment and don’t want to sell their home, a reverse mortgage can be a great tool. Visit us online at LocalReverse.com to learn more about Reverse Mortgages and about common FAQ's.