real estate

September 5, 2018 Buying a Home, Reverse Mortgages No Comments

Realtors Increase Their Sales

Well, actually they “could be increasing their sales” if they understood how a senior client could use funds from a reverse loan to purchase a home.

Although the HECM for Purchase has been available for several years, it seems that most Realtors are unaware of it and or they don’t understand reverse mortgages and how they can benefit their senior clients and their own business.

Apparently, some who do know about it, are apprehensive about this mortgage financing option and because of that, they are not considering it’s use for their older clients. And that is because they are unfamiliar with the loan, the benefits and in general how it functions.

They are doing a disservice to their senior clients and themselves because they could receive two commissions. One for the Listing their client’s home and one for selling them their new property.

Generally, the client will sell their current residence and purchase another home using the funds from the sale of their home for the new purchase, typically about 50% for a down payment.

And if they are buying new construction they can apply for their reverse loan prior to the authorities issuing a Certificate of Occupancy, that can speed up the loan process rather than waiting for the Certificate to be issued and then applying for their loan.

It’s an ideal option for seniors to buy as they don’t have to qualify on Debt to Income rations or FICO scores, have no mortgage payments and own the property as the Title will record in their name or Trust.

And overall, it’s a much less stressful experience compared to applying for traditional mortgage financing and can be accomplished quicker as well, taking away much of the anxiety associated with purchasing a home.

And when they pass away, the property will go to their estate and designated heirs, not the Lender.

In conclusion, more Realtors should learn about how to increase their own sales and help their senior clients into properties that better suit their needs as they age.

August 28, 2011 Reverse Mortgages No Comments

HUD Lending Limits and 2012

Here is the remaining part of the article that discusses the continuation of the current HUD Lending Limits and their extension through 2012. This is certainly very good news for the Real Estate market and any first time home buyers who would like to apply for an FHA loan. Plus it is HUD Kespecially good news for seniors who will be able to take advantage of the higher limits when apply for a Reverse mortgage.

“The loan limits for the HECM program were raised from $417,000 to $625,500 in February 2009 and were extended last year. They were previously scheduled to expire on October 1.

Many in the reverse mortgage industry have speculated as to the negative impact a return to the previous, lower loan limit would have in areas with high-valued homes.

The loan limits could still change at the end of the calendar year 2011. Prior to the emergency loan limits, HUD would routinely adjust loan limits on a calendar basis.

“The only reason we adjusted our loan limits [last week] is because of a statutory expiration date at the end of the fiscal year,” said Brian Sullivan, HUD spokesperson in an email to RMD.””

View ML 2011-29.

Written by Elizabeth Ecker

March 31, 2011 Reverse Mortgages No Comments

Real Estate Values Continue to Decline

I am going to share a report from Clear Capital that was recently published about the difficulties the housing market continues to experience. And it seems that what is partially responsible for the continuing trend, is due to the West Coast’s inability to see any kind of recovery.

For seniors who may have a mortgage on their property and may be considering applying for a Reverse loan, I would encourge them not to wait any longer. If they continue to lose equity they may find themselves unable to qualify for a Reverse loan and will have to continue making their mortgage payment each month and wait for housing values to increase sometime in the future.

Here is the article in it’s entirety:

U.S. Home Prices Continue Slight Decline as West Region Drags Nation Down According to the Clear Capital™ HDI Market Report
“While national home prices have appreciated 4.2% since early 2009, the West region is poised to double dip by the end of Q1 2011 if trends continue.
TRUCKEE, CA – March 10, 2011 – Clear Capital (www.clearcapital.com) released its monthly Home Data Index™ (HDI) Market Report, and reports a quarter-over-quarter national price change of -1.4 percent.

The HDI Market Report provides the most current (through February 2011), granular and relevant analysis of how local markets performed compared to the national trend in home prices.

Report highlights include:
· National home prices continue to drift downward, largely due to the West’s quarter-over-quarter declines (-4.5%) that could lead the region into double dip territory as soon as next month.
· National home prices are up 4.2% from two years ago, yet the gains of other positive market indicators have yet to extend to the greater housing market.

“Despite distressed inventory pressure and traditional winter inactivity, current trends are continuing to show a softening of price declines,” said Dr. Alex Villacorta, director of research and analytics at Clear Capital.

“The 3.9 percent quarterly decline we observed in December has given way to moderating declines with the national price index now down only 1.4 percent, suggesting a leveling of prices is on track for spring.”
“From a larger perspective, prices are still up 4.2 percent off of the absolute lows of the housing crash, a sign that long term gains can be realized amidst the volatile behavior of the last two years,” added Villacorta. “Yet, when comparing this growth to other economic indicators over the same time period, it is clear that the housing market still has a long way to go toward a sustained recovery.”

Clear Capital – Elizabeth Ecker