Los Angeles reverse loans

Home Equity

I just read the following stunning statement about how much American seniors have in home equity.  It is an enormous figure and seems to be growing upwards every quarter, and is now at $7.54 trillion dollars.

But many seniors still have a mortgage on their property and have to make mortgage payments and its become extensively more difficult in the last few months due to Covid-19 and how it has impacted millions of Americans and their savings and retirement funds.

Many American homeowners who are unemployed due to the Pandemic are extremely concerned about making their mortgage payments and have entered into forbearance plans with their Lenders.  Their payments will be deferred for a period of time, but depending upon the terms of the agreement, the homeowner might be faced with a balloon payment.

If they don’t have funds, to begin with, how are they going to pay whatever the amount is when it becomes due in a few months?


But if the homeowner is a senior, they can use a reverse loan, pay off the mortgage they have, and not have any more monthly payments.   The Title stays in their name, no prepayment penalties and when they pass away, their home goes to their estate.

This is one of those times when it is seriously advantageous to be a senior in America.  A  reverse mortgage can help mitigate market risks and provide some financial security to them during this very difficult time in our country.

And it is a very intelligent solution to eliminating money insecurities.

Continue Reading

Covid-19 and Seniors at Risk

It has been a while since I have written anything in my blog, because like everyone else, my life was turned upside down with the pandemic and it’s destructive swath across the world, taking lives, ruining economies, creating fear, anxiety, and uncertainty.

Anyone who had a 401-K, some sort of a retirement plan or at the least, a savings account have seen them dashed, drained away and depleted within days and the Stock Market will continue to reel in uncertainty for most likely, a very long time.

Eventually, we will get through this terrible time, but if you are a senior, you may not have the ability to wait it out until the markets recover and are very worried about running out of money.  I am here to say, that this is the one time a senior has an advantage over younger people because they have an option that younger people don’t have.

If a senior age 62 or older, lives in their home  (even if they have a mortgage on it), they could apply for a reverse loan.   However, too many are afraid of them because they think the Lender will end up owning their home  (false),  they have to still make payments (false), there is “fine print” to trick them (false) and they are “too good to be true”.  (False again.)

  • The FHA HECM is the most regulated mortgage in the lending industry, to protect seniors from financial abuse.
  • Anyone who wants to apply for a reverse loan must complete telephone counseling with a HUD-approved Counseling Agency.
  • There are no mortgage payments, however, the borrower must continue to pay property taxes, Homeowner insurance and keep their home in good repair.
  • There are no restrictions on how the borrower uses their funds, except they are discouraged from buying annuities or other investment products.
  • They can remain in their home for their entire lives and leave it to their estate.

The reverse loan industry is seeing an increase in loan applications at this time because obviously money from a reverse loan will give them the safety and security they need and take away the fear and anxiety about running out of money.

The loan is safe, well-regulated and an ideal solution for all senior home-owners to consider right now.   From the time the HUD Counseling is completed, the loan processing time takes about 45 days, however, it might begin to take longer with the increase in applications.

Although I am located in California, anyone who reads this may contact me if you have questions.   I can point you in the right direction for a reverse loan consultant in your state.

Don’t hesitate.  If you have a home or Condo and you are old enough, you have this opportunity for financial security.  Look into a reverse mortgage.  Now.

Continue Reading

Reverse Loans Are Confusing

Generally, in spite of the articles and television commercials about reverse loans, I have found that many people are still quite confused about reverse mortgages and do not understand that they are just like a regular home loan, with the exception there are no mortgage payments to be made by the borrower.

And what I find very surprising is how many professionals, such as traditional Loan Officers, Bankers, CPA’s, Estate Planning attornies and Financial Advisors are very uninformed, and are not qualified to provide their clients with accurate information if their client asks them about it.

This is unfortunate because quite often seniors are relying on them for professional advice and sometimes the professional simply gets it “wrong” and ends up possibly giving them very bad advice.

For a senior who is attempting to learn about the loan and whether or not it should be considered as a possible source of additional funds, it leaves them without too many reliable sources of correct information.  I quite often suggest that they utilize the counseling that is provided by HUD-approved Counseling agencies throughout the country and sometimes it can be done in person.

http://See what my clients are saying about me

Part of my consulting service provides them with several National agencies and 10 that are within California.   They can call any one of them and set up a counseling appointment that can be done over the telephone and learn about reverse loans.

The Counselor provides accurate information and answers the individual’s questions or concerns about them.   At the end of the session, the Counselor will mail a HUD Counseling Certificate that is viable for 6 months.

If the seniors decide to apply for a reverse mortgage, they will give a copy of the Certificate to the Loan Officer to verify that they have been counseled.   This is a HUD regulation and provides a layer of safety for seniors and no one can apply for the loan without having received the counseling.

Speaking with a HUD-approved counselor is a great resource to get questions answered and not end up having a salesperson from a Lender calling them constantly and pressuring them to apply for the loan.

In closing, if anyone who is reading this and would like to have a copy of the Counseling list, just send me an email requesting it and I will provide it to you.

And I will not pester you to apply for the loan.



Continue Reading
Reverse Loan Consultant