There has been some concern by the Senior community that Reverse Mortgages are in trouble along with the rest of the Mortgage industry. With the huge issues facing all of us at this time, some Seniors and their families are worried that a Reverse loan isn’t safe and won’t considering using one at this time to help with financial problems.
Other than the decline in the property values across the country, the Reverse Mortgage industry is a safety zone for Seniors who are struggling in these very difficult economic times. But if a Senior is considering using the funds from a Reverse Mortgage to retire an existing loan, there might be a problem.
And that would be the appraised value of the property. If the mortgage to be paid off is particularly large and depending on the age of the borrower(s), there’s a possibility that a Reverse loan cannot be done if there is not enough equity.
The need and value of the Reverse loan is more important than ever, given that the Senior community is trying to exist on a fixed income, which is certainly not enough these days, to cover the costs of living. If you think that things are tough for you, consider what it must be like to be a Senior trying to stretch their dollars every month, eating less and in some cases, not able to afford their medical prescriptions.
And if a Senior has a mortgage payment to make, sometimes they just can’t do it and they find themselves in foreclosure. Even more of them are going into bankruptcy, as they are trying to live off of credit cards and when the money is used up, they of course can’t make the payments that are owed.
The bleeding can be stopped by using a Reverse Mortgage and so can a foreclosure. It’s ridiculous and appalling that a Senior should have to lose their home and dignity when the answer is right at hand.
As you said it, reverse mortgage might be life saving, it might not; it all depends on the equity. But there’s no harm in trying, right? One can check on his own case during a counseling session where more definite answer can be given.