baby boomers

Stopping a Foreclosure

Can a reverse loan be used to stop a foreclosure on a seniors property? Yes, it can but it must meet the other loan requirements per the lender.

Sadly, some senior homeowners have found themselves unable to keep up with their mortgage payments or property taxes because of unexpected events such as a health crisis or a major repair to their home and they end up falling behind on their payments, triggering a foreclosure.

If they are not too deep into the process and apply for a reverse loan, there is a good possibility that it can be stopped and they won’t lose their home.

Here is what a reverse mortgage lender will need in regards to the foreclosure from the potential borrower.

  •  Proof of foreclosure and the dates associated with it.
  •  A letter from the attorney handling the foreclosure confirming that the payoff is not a short pay.
  • Confirmation that the borrower is still occupying the property
  •  Confirmation that the borrower is still the legal, vested owner of the property.
  •  Confirmation that the Sheriff’s sale has not taken place, OR that the borrower is still within the redemption period AND vested in title.
  • The borrower must provide a letter of explanation describing what happened to them and what steps they took to avoid having a foreclosure.

Documentation must be provided by the borrower for the reason they fell into foreclosure, which could have been due to income loss, large and unexpected medical expenses or other viable reasons.

This is a very simple overview about using a reverse loan to stop a foreclosure that is in process, however there are additional qualifications regarding “residual” income , the amount that is “owed” and if there is enough remaining equity in the property to complete the transaction.

Please contact me for more details and/or a quote and I will answer any questions about the process and what you need to know.

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Shopping for Mortgages

This is the second part of any article that I wrote about locating information about Reverse loans without getting “slammed” by a bunch of irritating sales people.

Part II

Your loan will have to go through a processing procedure and under the best of circumstances it will take about 45 days or maybe less to complete (Assuming you have provided everything the Lender needs on your file), which “then” the interest rate is locked and the loan documents are ordered.

Meanwhile, the “cost of money” is fluctuating every day.

Just like the cost of that television you were interested in purchasing.

Let’s say someone told you that they could give you a traditional 30 Year Fixed rate at 3.250 % at zero points.

By the time you have sent in your personal documentation, signed a loan application and disclosures, the appraisal is completed and your loan has finished processing, that rate could cost more or maybe less, but most likely it won’t be the same as what you were told when you did your initial phone call weeks before.

I will be posting the next section of my article in a following post.

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Memories of a Grandmother and the Holidays

There is a lot of current news about Reverse loans and it’s all positive but I thought that given it’s Christmas and Hanukkah,  I would share a sweet memory about a Grandmother.

“I Wore My Grandmother’s Ring”

Written by Tami Podell

Assisted Living Connections – 818-357-1123

Yesterday, I wore my Grandmother’s ring. This may not seem very noteworthy. It’s a beautiful ring – old-fashioned, big and clunky.  I’m not a ring-wearer and for a wedding band, I normally wear a very light, slim band.

But on this day, I was inspired to wear Grandma’s ring because of memories that stirred within me while stirring my morning coffee.

When I was a child, rain or shine, we visited my Grandma Rosenbloom, my father’s mother. My father would be 94 years old today, and he and his brother were raised alone by my Grandma during the depression.

His mother was resourceful and taught her boys well, and he loved her and felt duty bound to her his entire life. Hence, the weekly Sunday visits to Grandma, who lived on Venice Beach in the Cadillac Hotel – a Senior Residence building of studio apartments.

Grandma was lucky to have a private bathroom and didn’t have to walk down the musty hallways to the communal bathroom.

This “hotel” had elevators reminiscent of old Alfred Hitchcock movies, and a
four story winding staircase with a very long drop down the center of the building, where my brothers and I used to look down and throw bits of paper or thread, watching the little bits take their long, floaty journey down the abyss.

My middle brother, Rick, would take me for walks to P.O.P ( I never knew that stood for Pacific Ocean Park ), an abandoned and spooky amusement park at that time.

We would cross the street to the newer apartment buildings, where there was a small convenience store in the lobby. My brother would buy me red  licorice or chocolates ( I loved the cherry-filled chocolates) and all of this was part of growing a very close bond as we grew up.

When we walked back to Grandma’s, I would lay down on her little single bed and fall asleep to the murmur of all the chatter and discussion going on in her small apartment.

I remember the warmth and fragrant smells of my father’s cooking onions and eggs to eat with bagels, lox and cream cheese.

When the dishes were all cleaned and dried and I had awoken, Grandma would put on her wool overcoat ( it could be August- it didn’t matter ), and come downstairs and outside to the beachfront boardwalk.

All the older people were sitting on benches wrapped in their coats, jackets and scarves while the young people whizzed past on their roller blades with thrumming music, drums and wearing bikinis ( this WAS the ‘60’s – the age of psychedelics.)

While I didn’t always look forward to going to Grandma’s… I didn’t enjoy those big, smoochy, lip-sticked kisses on my little face…. those days come back to me as happy memories.

And after my Grandmother’s passing, I somehow always felt like her spirit was especially watching out for me.

As a grown-up, I believe that this may really be true. Grandma never really shared her “Spirituality” with me, but from my older brother, I know that it was there – privately – just like mine.  And I believe it makes a difference and is transmitted – the prayers reaching through generations.

My husband and I have joked about our lack of religious upbringing, he kidding around about how there was a ham at one end and a challah at the other end of the table during the Passover Seder.  My retort, “at least you had a Passover Seder.”

But now, being connected to my roots is one of the most important aspects of my life. And I believe it may have happened because of my Grandma’s private prayers.

I feel like I am strengthened by the hardships and resilience of both my immediate ancestors, as well as, my very distant ancestors.

One example of growth through adversity would be the story of my father  looking for food and finding empty cupboards as a child.

Yet on Fridays, he was always sent down to the butcher to get two chickens – one whole chicken each for himself and his brother for their special Friday night dinner.

(As for my “distant ancestors”, our forefathers and foremothers for all their lives had challenges that developed and demonstrated their character. Hopefully, they have passed along their ‘spiritual DNA.”  )

I could go on and on, but in short, these memories bring to mind how important it is that in this fast-paced world, where we live in a society where everything is disposable and/or becomes obsolete, it is important to stay connected to our parents and grandparents.

We are all connected and each of us is a link from the past to the future.  Rich traditions and rituals like Sunday visits to ‘Grandma on the beach’ create an anchor rooted in feeling loved and protected, and that provides us with the strength and faith to move forward and believe in ourselves to face the challenges in life.

It gives us the endurance to pass this sort of unselfish commitment to our children and hopefully to our grandchildren as well.

This is family, and this is what builds up a society.

So, posthumously, “ Thanks Dad for always making us go visit Grandma every Sunday.”

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Reverse Loans for Retirement

Well, this is the direction the FHA loan is going as America is staring at a huge domestic crisis, as to how to take care of the aging Baby Boomers.

Most don’t have enough money to retire and live on for the rest of their lives and with the recent positive changes in the FHA HECM Reverse mortgage, it will provide them an additional option to preserve the funds that they do have in any portfolio.

This is the most regulated loan in the Lending industry.   Safe, affordable and a realistic option to fund one’s longevity.

Here is the remainder of the article.

New Study Underscores Retirees’ Need for Non-Traditional Funding Sources
Posted By Jason Oliva On June 7, 2016 @ 5:32 pm In News,Retirement,Reverse Mortgage

“Such reluctance can be largely attributed to a lack of education on how to strategically leverage home equity in a retirement income plan, coupled with a lack of understanding for the new consumer protections that have been enacted in recent years.

Of a total of 1,003 people between ages 55-75, roughly 70% failed a retirement income literacy quiz on reverse mortgages administered by The American College earlier this year. While more than half of these retirees and pre-retirees (56%) said they haven’t considered home equity use in retirement, far less (14%) admitted they have considered the idea of using a reverse mortgage to support their retirement.

Despite these attitudes, as longevity is expected to increase, more seniors may find themselves with insufficient savings to sustain their financial needs in retirement. This presents a plausible scenario that could lead to increased demand for reverse mortgages in the future, but it all starts with education.”

If you would like an honest and detailed presentation of the facts about Reverse loans, please contact me.

I will meet with anyone living in the Southern California region.

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Will I Outlive My Retirement Money?

Well, many Americans are very concerned about this probability because they simply don’t have a retirement plan or never bothered to set one up for themselves and now they are facing a scary future where they may not have enough money to sustain their lives.

The 2016 study that was done by the Harris Pole for Northwestern Mutual took a very serious look at the pending domestic crisis America is facing and not surprisingly, those who are approaching retirement   ( If they can retire) and those that have already retired, are worried about running out of money.

In a previous post, I shared the first part of an article that discusses this study and due to it’s length I will share part of it in this post, with the rest of it to follow.

New Study Underscores Retirees’ Need for Non-Traditional Funding Sources
Posted By Jason Oliva On June 7, 2016 @ 5:32 pm In News,Retirement,Reverse Mortgage

“Life expediencies continue to climb and that’s a good thing, however, Americans are increasingly less confident that their savings will last through retirement. Roughly two-thirds of survey respondents believe there is a chance they will outlive their savings, with 34% of this bunch saying the likelihood of this happening is 51% or better.

“The prospect of an extended retirement in an environment of diminishing safety nets makes it even more essential that your financial plan is flexible enough to stretch as long as needed,” said Rebekah Barsch, vice president of planning for Northwester Mutual, in a written statement.

The 2016 study results not only highlight the vast unpreparedness of American adults, but also underscores the need to look beyond traditional funding streams like Social Security to bolster retirement savings.”

Of course, as a Reverse Loan Consultant I know how valuable the FHA loan program is for preserving wealth and providing emotional security, but that is another topic.

People need to simply become educated about their benefits and why they should consider using them as part of a retirement plan.

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