Economic troubles don't affect reverse mortgages / LJWorld.com

Archive for Saturday, October 4, 2008

October 4, 2008

Getting a conventional mortgage is more difficult if you don't have a high credit rating or an adequate down payment.

But credit ratings and down payments are not issues if you are interested in getting a reverse mortgage. Problems that have beset the mortgage market are not affecting reverse mortgages, lenders said.

"If you are old enough and you have equity in your house, you get the loan," said Deborah Decker, vice president of Hilco Mortgage Corp. in Lawrence.

A reverse mortgage is a loan against your home that you don't have to pay back for as long as you live there or until you die. Then the house has to be sold. To qualify you have to be at least 62 years old.

The reverse mortgage is used by senior citizens to get extra money. There are several ways of receiving the money if you are approved. The owner doesn't turn over the home's title to the lender.

There appears to be a growing interest in reverse mortgages because older Americans are facing increasing prescription drug costs and higher taxes, Decker said.

"What was a livable monthly stipend from retirement or Social Security no longer covers everything," she said. "People are living longer and need more money."

Decker thinks many senior citizens don't know about the availability of reverse mortgages.

Discussion

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4 October 2008
at 6:11 a.m.

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merrill (Anonymous) says…

Warning: Do Not Apply For A Reverse Mortgage With A Lender Without First Knowing All The Facts & Options. The Reverse Helpline Is A Free Public Service For Seniors & Family Of Seniors. Before You Apply With A Lender It Is Very Important To Find Out Key Facts Such As:* How Much Money You Qualify To Receive* What Fees Are Allowed By Law* a us hud Insured Reverse Mortgage vs. A Non US HUD Insured Reverse Mortgage * Most Importantly The New Improved Reverse Mortgage Benefits For Seniors That Congress Just Passed. Call The Reverse Helpline At 800-400-6789 24 Hours A Day 7 Days A Week To Find Out All The Inside Information About Reverse Mortgages Before You Apply.*HUD Reverse Mortgages Are A Federally Insured Program For Senior Homeowners 62 Years Of Age Or Older Only.Here Are The Major Benefits:Find Out About The Much Improved Benefits Of Reverse Mortgages For Seniors Just Passed By the United States Congress Get All The Facts On US HUD Insured vs Non HUD Reverse Mortgages Get Cash Out Or Just Stop Current Mortgage Payment No Monthly Payments While You Permanently Live In Your Home You Must Be 62 Or Older Stops Foreclosure Or Late Payments Easy To Qualify For Safe HUD Reverse Mortgages For All 50 States Get Referred To A HUD Approved Reverse Mortgage Lender That Specializes In Your AreaFor Complete Information On Reverse Mortgages, Click Here: http://www.reversehelpline.us/home.html
4 October 2008
at 8:17 a.m.

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50YearResident (Anonymous) says…

Reverse Mortgage holders are already getting screwed it can't get any worse.
4 October 2008
at 8:38 a.m.

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onrywmn (Anonymous) says…

I can not recommend getting a reverse mortgage. I helped my 82 year old mother in June, 2003 in obtaining one because I thought it was a good deal for her. First, they had to inspect her house, and the house had to be repaired up to their standards, which was very expensive, many thousands of dollars.The money spent on fixing up the house went on her reverse mortgage. After paying off her bills and getting some things she needed, she has a big balance due on her death or if she moves out. The neighbor next door that lived in an identical house and built the same year, had her house foreclosed and moved out two years ago. Her house was sold way below the value, so now my mother's house is worth less. As the executrix of my mother's estate, I do not think there will be any equity in her house left with the interest charged plus what she owes if she has to move out. That means she will once again be in financial straits, but this time she will have to worry about paying rent too.
4 October 2008
at 10:27 a.m.

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justtemp (Anonymous) says…

Mr. Belt, why would you write an 'article' about reverse mortgages with only a mortgage broker as a source? Perhaps you could have consulted/quoted consumer advocates or others with different perspectives. The piece reads like an ad from the mortgage industry.
4 October 2008
at 4:18 p.m.

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ASBESTOS (Anonymous) says…

Sloppy “journalism”, sloppy reporting. The banks having tight credit and a shortage in capital are going to make anyone getting a mortgage, reverse or otherwise very difficult on those receiving the mortgage or loan.Clueless, and screy that we have this level of “intellect” in our “watchdogs”. Truley stuptifying.This is nothing more than a advertisment of the reverse mortgage banks and isstitutions.Very sorry.\Print a retraction.
5 October 2008
at 10:42 p.m.

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OrangeCat5 (Anonymous) says…

Sloppy journalism and sloppy reporting indeed. The Hilco v.p. is Deborah Becker. LJW, that's a 'b', as in 'boy'. Geez.
5 October 2008
at 10:56 p.m.

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merrill (Anonymous) says…

After reviewing online information AARP among others suggest this is considered expensive money. AARP does suggest taking time to review all options.

6 October 2008
at 8:57 a.m.

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none2 (Anonymous) says…

People who sell seniors on the idea of reverse mortgages should be sent to prison. Why do we let people prey on seniors?Plus it is age discrimination. Lets make them lower the age to 30, and see how THEY like the arrangement. My father had thought about this too. It turns out that they can also evict you if they think you are not up to keeping the property in tip top shape. After all it is THERE property, you are just living on the premise.