HECM Reverse Mortgages Suffer Big Blow From HUD

9/23/2009

posted by N. Sioris

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HECM (Home Equity Conversion Mortgage) reverse mortgages have suffered a big blow by Congress and HUD this week. HECM loan limits will be slashed by 10%, effective October 1, 2009.

In the face of declining home values nationwide, decimated stock market portfolios, and the weakest economy since the Great Depression, HUD announced that they are cutting loan limits on all HECM reverse mortgages by 10%. The announcement was made September 23, 2009 in their mortgagee letter 2009-34.

This is highly disappointing news for senior homeowners that are barely eligible to qualify for HECM reverse mortgages, due to property values versus outstanding mortgage debt. If you happen to be one of those people that is boarder line on having sufficient equity in your home to qualify, it's quite possible that after October 1st, you will no longer be eligible for a HECM loan, unless you have the ability to contribute some of your own money to the closing.


Leaves Us Scratching Our Heads

It's puzzling to many of us, how Congress and HUD could embrace a 10% reduction in lending limits to senior citizens during such a vulnerable economic time. There is abundant evidence that many closed HECM reverse mortgages have rescued countless seniors from foreclosure and saved their homes through the use of HECM reverse mortgages.

This move, will no doubt be devastating for many senior homeowners that were in the process of considering a reverse mortgage loan, but simply had not made the commitment to act on it in time.

Combine the 10% reduction in lending limit with the expiration of the temporary HECM maximum loan amount of $625,500. reverting back to $417,000. at the end of this year, and once again, we are witnessing a perfect storm in the making.

If you need more information about how this effects your eligibility, please feel free to contact us today.

HECM Reverse Mortgages Could Be The Answer

9/08/2009

posted by N. Sioris

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During the past year vast amounts of wealth have vanished into thin air from many retired folks' nest eggs. As a result there is a greater demand for HECM reverse mortgages . It is estimated that trillions of dollars in retirement portfolios have evaporated over the last 18 to 24 months. This is undeniably, the worst economic collapse since the Great Depression.

As a result of the stunning loses experienced by many seniors all ready in retirement and relying on fixed incomes, it has been increasingly necessary for many retirees to take a serious look at tapping into home equity through the use of HECM (home equity conversion mortgage) reverse mortgages in order to replace lost dividend and investment portfolio income.

HECM reverse mortgages are government insured loans that allow seniors age 62 and older to receive monthly income based on the amount of equity in their homes. The current financial meltdown could be the reason that government reverse mortgage production has increased nearly 20 percent over the same period last year.

For older Americans who intend to stay in their homes long-term, HECM reverse mortgages could very well be the financial vehicle they need in order to sustain their cash flow during their retirement years.


Qualification Is Easy

This can be a very attractive choice because there is no repayment required on HECM reverse mortgages as long as the seniors remain in the home as their primary residence. There are also no income or credit qualifications in order to be eligible for a government reverse mortgage.

If you or a family member would like additional information about HECM reverse mortgages, please contact us by clicking below or call our office at: 1-888-269-1098

HECM Reverse Mortgages - Quick Overview

8/30/2009

posted by N. Sioris

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Although HECM (home equity conversion mortgage) reverse mortgages have been in existence for more than 20 years, the general public still finds them a bit mysterious. They actually are not that difficult to understand, once you start grasping the basic facts about how they actually work. Once you have an understanding of the basics, you will be able to determine whether HECM reverse mortgages are worth considering for your situation.


Facts At a Glance

*You retain title to your home. The bank does NOT own your home and
the bank does not get your home after you pass away. Your home remains part of your overall estate and can be passed to your heirs.

* The are NO monthly mortgage payments required.

* You do not have to repay the loan as long as you live in your home.

* The money you receive from your home is TAX-FREE.

* The money can be used for whatever you like...no restrictions.

* The money you receive does not affect your Social Security or Medicare benefits.

* HECM reverse mortgages are often times used to pay off an existing mortgage balance.

* Reverse mortgage loans can substantially improve the quality of your retirement life.

* You or your estate are never financially responsible if your home is worth less than the balance of your reverse mortgage at the time you permanently leave your home.

* HECM reverse mortgages are considered "non-recourse" loans, meaning that the home stands alone for the debt.

* You can buy a house with a reverse mortgage and never make a monthly mortgage payment on the new house as long as you live there.

* HECM reverse mortgages do not require credit, income, or medical qualifications.

* All owners on the title to the home must be a minimum of 62 years old.

* The home must be your primary residence.

* HECM reverse mortgages require substantial home equity, usually at least 40% or more.


Now that you have glanced over the basic facts, you may wish to find out if you qualify for one of the HECM reverse mortgages that are currently available. Just click the button below for your personalized reverse mortgage quote.

What Is A Reverse Mortgage - Video

7/21/2009

posted by N. Sioris

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What is a reverse mortgage loan? How can the money be used? How do I qualify for a reverse mortgage loan? Do I have to make payments on a reverse mortgage loan? Do I have to pay taxes on the money from a reverse mortgage loan?