property taxes

Home Savers Program

A very small loan program to assist seniors in their ability to pay for their homeowners insurance and property taxes, has become available in the Washington DC area.   Non payment of these obligations by seniors, even after they have done a Reverse loan as in some cases has caused a foreclosure on the senior’s property in the county  where they live.

The Reverse loan requires the borrower to continue to pay taxes, keep the home insured and well maintained.   But sometimes this can be difficult for some seniors, so a program such as this one this is described in the following article, could be very beneficial for the homeowner.

“Local Program Offers Default Relief for Reverse Mortgage Borrowers
Posted By Jason Oliva On November 12, 2013 @ 6:54 pm In Counseling,News,Reverse Mortgage | No Comments

A micro-loan program in Montgomery County near Washington, D.C., offers reverse mortgage borrowers default relief through the help of a local counseling agency, The Washington Post reported [1] this week.

Focused on assisting reverse mortgage borrowers in meeting their tax and insurance requirements, Asian American Homeownership Counseling’s (AAHC) Home Savers program [2] offers an interest-free micro-loan of up to $4,000 for eligible residents living in Montgomery County, Maryland.

AAHC is a nonprofit organization approved by the Department of Housing and Urban Development that serves homeowners as well as condominium owners.

Under the Home Savers program, the $4,000 micro-loan must be repaid within two years, though extensions could be obtained depending on a borrower’s financial situation.

Reverse mortgage borrowers are required to attend to financial education orientations, one of which regarding money management and the other focusing on “thoroughly understanding credit,” the article writes.

There is also an income restriction for Home Savers, as the program is designed for homeowners making less than Montgomery County’s median area income. For a family of four, the median income is $107,000 and $79,000 for a family of two.

AAHC intends to expand the reach of Home Savers to neighboring areas such as Prince George County and Washington, D.C. through the use of grants.”

Written by Jason Oliva

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Deferred Payment Loans

 The Los Angeles Times recently published an article about DPL’s that is interesting but not thorough in that it doesn’t explain the parameters and the  differences between the two loan programs.  If anyone is going to consider one over the other it is important to know how they compare to one another.   Here is what is important to know when researching the details of the two mortgages.

1.  DPL’S are usually offered by states or cities.

2. But how the funds are used from the loan are restricted.   Typically they can be used to pay taxes or special assessments, home repairs or energy efficient improvements and not for cost of living expenses.

3. The amount of the money will vary from state to state or city and it will be considerably less than a person could receive from a Reverse loan.

If a senior does not need additional money for living expenses and is comfortable with the amount the money that they receive through Social Security and possibly a pension but needs money for those situations that a DPL loan could provide, then it might be a good choice.   But in the end  a Reverse mortgage is far superior, more funds, flexibility and no restrictions on how the money can be spent.

L.A. Times on Reverse Mortgage Alternatives
May 2nd, 2011  |  by Elizabeth Ecker Published in News, Reverse Mortgage  |  4 Comments

The L.A. Times published an article this week covering some alternatives to taking out a reverse mortgage loan. The article, titled, “Elder homeowners might want to consider reverse mortgage alternatives,” offers options it calls alternatives to reverse mortgages including deferred payment loans (DPLs), property tax deferral (PTD) loans and Supplemental Security Income (SSI) benefits, and outlines several housing options.
The article doesn’t address pros and/or cons of reverse mortgages, instead it offers additional options.
“Reverse mortgages may very well be a good choice for some seniors who need to tap into equity they have in their homes,” the article states, before outlining the alternatives. “But there are other options elder owners might also want to consider.”
For DPLs, the L.A. Times writes, generally there are no origination fees and insurance premiums and closing costs are low, as are interest rates. As for a PTD loan, the article states, “Generally, it provides annual advances that can be used only to pay your property taxes or a portion thereof.

 But no repayment is required for as long as you live in the house.” They are only available in some areas, however. For SSI benefits, the article explains, seniors may be eligible if their liquid resources total less than $3,000 for a couple or $2,000 for an individual.
For those who don’t qualify for a reverse mortgage or for whom reverse mortgages proceeds are not sufficient, the article suggests three housing alternatives: accessory apartments, ECHO cottages and sharing arrangements.
Written by Elizabeth Ecker

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