Klamath Falls Oregon: Reverse Mortgage and foreclosure:
There are three kinds of people when it comes to understanding the truth about Reverse Mortgage:
I will be the first to say that a Reverse Mortgage (or HECM) is not right for everyone you owe it to yourself and your clients if you are a trusted advisor to make sure that you belong to the first group. Starting in 2011 10,000 Baby Boomers are turning 62 everyday, if you are a trusted advisor chances are your client base in the 62+ demographic is rapidly growing. In a survey conducted in 2006 93% of Reverse Mortgage clients are satisfied!
One of the myths that I address regularly is: "If I get a Reverse Mortgage the bank will own my home and I will loose it to foreclosure".
Both are just that: a myth! The client does not give up title to the property the same as with a conventional loan so the "bank" doesn't own it. To address the second half of the question let me ask you one: There is not a montly principle and interest payment so how can the home end up in foreclosure???
It is true that some properties with a Reverse Mortgage end up in foreclosure so let's now learn how they got there. Would you have to pay property tax if you didn't have a loan on your property? Of course you would, so what would happen if you didn't pay your property tax? You would be in tax default and risk loosing your home right? It is the same with a Reverse Mortgage..NO DIFFERENCE! You are also required to keep the home insured and take reasonable care of the property but why wouldn't you want to do that? There are approximately 46,000 (as of July 2011) homeowners NATIONWIDE that are in foreclosure that have a Reverse mortgage.
How many properties are in foreclosure that have a traditional loan?
Their property is not in foreclosure because of the Reverse mortgage, but because the homeowner did not pay their property tax. This same property would likely be in foreclosure with out a Reverse mortgage because we all have to pay our property tax! Take the time to educate yourself for your clients sake about the TRUTH: it would be an injustice if you inadvertantly gave someone who trusts you false information about the program and they were unable to find the relief that they may need in the current economy. So how can you learn? Find someone that has been exclusively in the Reverse Mortgage space for 5 years or more and spend 30-45 minutes with them. Chances are that it will really open your eyes and you will find out why I have stayed in this business for so many years. Unlocking options that can help our Older American's is a mission that pays off in ways that a pay check can not compete with.
If you would like to learn more, please visit my website. I prefer to do business face to face so if you are accross the nation I would be happy to find someone for you that can serve your clients in the same manner.
Tomorrow I will discus the cost of getting a Reverse Mortgage.
I LOVE MY JOB!!
If anyone has a resource to share that has helped an Older American please share it with me!
Portland Oregon: Are Mom and Dad ok?
As you are traveling home for the Holiday's please have an honest conversation with your parent/s and find out how they are doing in this economy. A recent survey indicated that over 50% of our Older American's are living at or below the poverty level who were middle income wage earners. This goes on under our nose with out Mom or Dad complaining at all!
Most of us have been hit hard and Mom and Dad are probably on a fixed income whether they are in Portland Oregon or New York City. This is a generation that I call the silent sufferers. In the last 11 years I have had the priveldge of working with Older American's whose biggest fears are:
The last thing they want is to be a burden on their family and as a result most will not share honestly how the economy has effected them. All of us in the working class know that we have to work harder and many times make less money, but have you considered what it is like to not be able to work harder to make money. Fixed income is not a friendly place to be when your investment portfolio may be shrinking and you know that you can do nothing to replace it. Social Security income is what many are living on and as we age we generally need more medication to regulate our bodies. Perscription medication alone can take a big bite out of a fixed income. I have worked with clients that pay in excess of $1,200 every month! Are you sure that Mom and or Dad are taking their meds? They could be faced with either buying the food or their medications and they will NEVER tell you about it.
What can you do?
What questions should you ask?
Take the time to get educated yourself, with a little research on the internet you can find many programs that offer assistance at little or no charge. The greatest generation that ever lived needs our assistance now and we have to tools to be able to find them the assistance they deserve. Please share with me any information you have that can help our Older American's. I would be happy to share more on request!
Enjoy your Holiday's and Christmas Cheer and don't miss an opportunity to see if Mom and Dad need you! It's better to give than receive....
Portland Oregon Older American asks: "should I wait to sell my home until the values come back?"
That is a great question and one that most older American's not only in Portland Oregon, but all over the nation are asking. To answer your question let me ask you one: are you planning on buying another home with the proceeds of your current home?
If the answer to that is yes then I would say you need to talk to your local Portland Oregon Realtor now because there is no better time to buy since there are so many bargains out there. Remember that you will sell your home for less than you think it is worth, but you are also buying one for less than it's previous value as well. Keep in mind that many of the costs associated with buying and selling a home are tied to the appraised value or the sale contract price. Real Estate Sales commissions, Title Insurance, Origination fees, Mortgage Insurance Fees are all examples of costs that are associated with the sale and purchase of Real Estate.
Guess what, as soon as the value of your home goes up so does the value of the home that you want to purchase. My question to you is why would you want to wait?
The same pricipal is true for those of you thinking about getting a Reverse Mortgage. If you wait for the value in your home to go up you may very well be facing higher interest rates which means that you won't qualify for any more money that you would today because a large percent will not go in your pocket but to interest. If you plan on setting up an emergency line of credit then I have even better news for you. You can lock in the current value of your home to protect it against any further losses that Portland Oregon and the rest of the nation have experienced, and the portion of your line of credit that you haven't used gains in value. Yes that's right it grows over time. Check out my webistie calculator and look at the amortization schedule and you will see it for yourself. As always, I am available (NO PRESSURE), to answer any of your Reverse Mortgage questions. Unlike a Home Equity Line Of Credit, your home can provide you with anEmergency Line of Credit that will not be frozen by the bank even if your home looses value and even better yet when you do use it you will not have to make a payment!
Isn't it time you stop taking money out of what's left of your portfolio account and let your Portland Oregon home get you through the economic plague that we are all faced with? If you are looking to downsize or upsize please do that before you get a Reverse Mortgage and consult with your trusted Real Estate advisors.
It pays to get your advice from those that work in the Portland Oregon market everyday and not rely on the negative nay sayers. Take action and educate yourself with the facts. Call your Real Estate agent, your accountant and your Reverse Mortgage Specialist and find out what your options are. It's time to start sleeping better at night!!
Portland Oregon Reverse Mortgage Question:
My question today comes from Mr. Yanes who is a 65 year old living in Portland Oregon. His daughter told him that he might be able to use a Reverse Mortgage on his primary residence to purchase a Condo in Arizona so that he can get out of the cold and spend the winters with her and his grandchildren. Mr. Yanes wants to know "what is the catch?"
Mr Yanes' daughter is correct, he can pull equity out of his primary residence and use the money for whatever he chooses. At 65 years young depending on which pricing option he chooses at the interest rates on December 1, 2011 he can get anywhere from $177,621 to $212,906 out of the equity he still has in his home that has a current market value of $350,000. He can choose from fixed interest, adjustable interest, we even have a "HECM SAVER" program that has less costs involved and will help him retain some equity in the home. One of our programs has no origination and mortgage insurance premium that can save him substantially. The costs associated are financed in the loan and range anywhere from $3,000 to $!5,000 again depending on the option that meets his needs. I have posted information from my website or you can call me direct so that I can give you all of the details. (The catch or downside of Reverse Mortgage is that you are using equity out of your home) Please let me educate you on your options.
I am happy to say that Mr. Yanes can enjoy that second home that he thought the negative economy had taken away from him.
Here is to you Mr. Yanes and your savvy daughter!!! 
Portland Oregon Older American's and Reverse Mortgage to secure Retirement nest egg
Have you been considering downsizing because your Accountant or Financial Planner informed you that you can no longer afford your home? Or are you worried about not having an emergency nest egg in your Retirement?
Today I will share with one option that you may not have explored yet, or may not know the truth about. New Purchase money made available to Older American's in Portland Oregon that are 62 or older. Yes, you can downsize or up-size to meet your current needs without a monthly mortgage payment.
Today 10,000 people will turn 62 and the vast majority have lost their nest egg because of reasons beyond their control. In a recent poll 88% of voters are worried about "being able to maintain a comfortable standard of living through out retirement".
Mr. and Mrs. Cozby left their annual meeting with their Financial Planner in Portland Oregon devastated because they were informed that their best option was to sell their home of 35 years and either downsize or consider renting. Their Financial Planner suggested they explore their options with a HECM (Home Equity Conversion Mortgage). After meeting with Mr. and Mrs. Cozby I showed them an option that their trusted adviser agreed with.
Their current home was valued at $400,000 according to the current market conditions. However,with the help of their Realtor they found a single story home in a safe community that fit their needs and was easier to maintain that was on the market for $250,000. Based on the age of the youngest borrower of 72 the Cozby's could purchase the new home with a down-payment of $85,520 together with the FHA HECM purchase money of $161,480 to purchase the home and have no monthly mortgage. Since the Cozby's did not have a mortgage balance on their departing home they were able to put $314,480 away for an emergency nest egg. They hold the title to the home they purchased, the new home will allow them to age in place and they created an emergency nest egg that they did not have before.
Sell departing home: $400,000
Deposit$ 314,480 into an account as an emergency nest egg
Purchased new home for $250,000 (capitalizing on the down market)
HECM Purchase money $161,480
Down Payment for departing home: $85,520
Total Purchase price of new home $250,000
NO MONTHLY PAYMENT and $314,480 in the bank.
The Cozby's chose a fixed rate product that accumulates interest at 5.06 with a Total Annual Loan Cost Rate of 2.874 if they live in the home for 13 years with zero appreciation rate. These charges typically include principal, interest, closing costs, mortgage insurance premiums, annuity costs and servicing costs (but not disposition cost when you sell the home.
In future blogs I will share a story of another client who used their existing equity to purchase a second home closer to the Children and Grandchildren and spend the winter in a warmer climate.
How much do you need to put down to purchase your new primary residence? Visit my website for a free calculator! Since the program is age based the older you are the more you qualify for.
As a Home Equity Expert I have been helping Older American's get more out of their retirement for 11 years. I love my job!
Please call me for a no obligation free consultation at 541-891-5706.
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Purchase money expert for Older American's utilizing the FHA insured HECM program to help you list and sell more property. If you have Older American's that would like to purchase real estate for any
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