The Real Story…
News and commentary about the real estate market and related topics.
Dave Parrish, ABR®, CSP, GRI, ePRO®,REALTOR ®, RE/MAX MarketPlace
The opinions expressed here are my own and don’t necessarily represent those of RE/MAX International.
Reverse Mortgage Could be the Answer…
In today’s trying market, I often run in to folks who have worked all their lives that are now finding themselves unemployed, indebted from refinancing their home to pay for their children’s education or suffering from losses in their 401K facing dire times and even at risk of losing heir homes. While age discrimination may be illegal, finding new employment… especially employment even remotely close to their previous income level is nigh impossible to find.
Facing retirement that is now but a shadowy dream, their only half humorous cry is that they guess they’ll have to become a Wal-Mart Greeter… The big box stores can only help so many seniors. But maybe there is a chance for a rescue found in the possibility of a Reverse Mortgage.
Yes there are some concerns about this creative financial alternative… and no doubt there are scam artist out there ready to take advantage of folks. But don’t write this alternative off. Rather than lose your home in foreclosure, the Reverse Mortgage could be a tool to save their home and stop mortgage payments thus creating a situation for seniors to find a way out and a way toward the ability to survive the future.
Contrary to popular belief your home does not have to be paid for to use this vehicle. However, you must be at least 62 years of age and to protect the rights of both spouses it works best when both spouses are older than 62.
You do need to have sufficient equity in the home for a plan to work… but by all means don’t rule out this option for saving your home and making limited retirement funds stretch a bit further.
Your local real estate practitioner should be able to connect you with a reputable mortgage firm or lender experienced in this option including counseling regarding the long term and short term effects of this option.
May the Market be with you.
Aid Coming for Seniors Unable to Make Payments
A pilot program by the National Council on Aging sets out to help seniors who have reverse mortgages and who are struggling to pay property taxes and home owners’ insurance.
“While reverse mortgages can help seniors to stay at home, these funds may be depleted over time,” Barbara Stucki, vice president for home equity initiatives at NCOA, said in a public statement about the program. “With economic conditions putting pressure on many of these borrowers, we want to assess the services and supports to help them remedy their delinquencies and stay at home.” NCOA is collaborating with the U.S. Department of Housing and Urban Development the National Reverse Mortgage Lenders Association for the program.
The agencies will partner with senior service community partner agencies in Miami, Houston, Detroit, and Los Angeles to identify ways to assist seniors with reverse mortgages who are at risk for foreclosure.
The program will work with seniors in pursuing local tax relief options and identify other financial, legal, and housing solutions in helping to resolve delinquencies. The program will also help borrowers who need to move to a more affordable or supportive housing development, if necessary.
“This problem is primarily a result of a faltering economy — lowering home values and losses in retirement savings — and our members feel a strong responsibility to help guide those in need through this rough time,” says Peter Bell, the president of the National Reverse Mortgage Lenders Association.
