April 17, 2014

Reverse Mortgages – A Visual Explanation

Reverse mortgages have been receiving a lot of bad press lately due to multiple news reports on elderly citizens with reverse mortgages being foreclosed out of their homes. This situation was noted in a post done earlier this year in which the details of the pitfalls of reverse mortgages were examined. The nonstop ads on [...]

How Much Money Can I Get From A Reverse Mortgage? A Step By Step Procedure

new-home

We have previously discussed the merits and potential drawbacks of the reverse mortgage program.  The reverse mortgage is officially known as the Home Equity Conversion Mortgage or HECM.  A reverse mortgage is obtained through the FHA and is a relatively small part of their lending business.  While the FHA will receive almost two million routine [...]

Regulators Warn Elderly To Be Aware Of Reverse Mortgage Scams

home

Unfortunately for all of us, there are numerous individuals and companies operating as financial predators against homeowners.  Even worse, many criminals operating financial scams prey upon the elderly who are least able to defend themselves against deceptive offers and high pressured sales tactics. The Federal Deposit Insurance Corporation (FDIC) has issued a warning in their [...]

FHA Tightens Guidelines On Broken Reverse Mortgage Program, Major Lenders Exit The Business

courtesy: consumer-action.org

Reverse mortgages, which have been available to elderly borrowers for over two decades, will become more difficult to obtain in the future.  Major reverse mortgage lenders have abandoned the product and the FHA has indicated that they will tighten underwriting guidelines due to the large number of reverse mortgage defaults. Last year, two of the [...]

Banks Exit FHA Reverse Mortgage Program As Defaults And Losses Skyrocket

The FHA’s reverse mortgage program, known as the Home Equity Conversion Program, (HECM) has been very popular with retired borrowers.  The program allows homeowners 62 years of age or older to withdraw some of the equity from their homes without having to make a mortgage payment.  The money obtained under the HECM can be in [...]