Reverse Mortgage Examples

I’ve done some extensive research online and made a couple calls with recent clients and seniors who have completed a recent reverse mortgage. I found these examples online; it is good to share examples so others can see the benefits of a reverse mortgage and how it might work in their specific situations.

Age - 72

Home value - $250,000.00

Equity - $210,000.00 with a mortgage balance of approx. $40,000.00

Problem - Sue lives alone and wants to stay in her home but is having difficulty meeting expenses. Her mortgage payment is $611.00 per month. With her Social Security income and pension she is still short $187.00 per month.

Solution - A tax free* reverse mortgage for $129,138.00 Taking a lump sum of $40,000.00 to pay off her existing mortgage and the balance in monthly payments of $561.00 After paying off the mortgage, Sue's monthly income rises to $1172.00 ($611.00 mortgage. payment plus $561.00 from the reverse mortgage).

Age - Bill is 82 and Mary is 80

Home value - $850,000.00

Equity - $850,000.00

Problem - Their income is sufficient to live as planned but they would like to assist with the college tuition for their two grand children.

Solution - A reverse mortgage credit line of up to $265,411.00 Then each grandparent can gift, each year, to each grandchild, the amount currently allowed by law*. Income from a reverse mortgage is currently tax free*. Call Toll-Free 1-877-476-9600 to speak with one of our Loan Specialist to find out more about reverse mortgages or to request more information. There is no obligation or cost for their services

Mortgage defaults up 180 percent: Homes in county lost to foreclosure rocket 987 percent in same per...

--------------------------------------------------------------------------------
Jul 26, 2007 - Knight Ridder Tribune Business News
Author(s): Mitch Deacon
--------------------------------------------------------------------------------

Jul. 26--VICTORVILLE -- Mortgage default notices in San Bernardino County surged 180 percent in the second quarter compared to the same time last year, while the number of homes lost to foreclosure rocketed 987 percent over the same peri d, a real estate information service reported.

From April to June, lenders sent homeowners statewide the highest number of notices of default in over a decade, according to DataQuick Information Services in La Jolla. San Bernardino County registered 5,141 notices of mortgage default in the second quarter, up from 1,839 a year earlier. Homes lost to foreclosure in the county totaled 1,489 in the second quarter, compared to 137 over the same period last year. The trend toward rising foreclosures will continue to accelerate in the Victor Valley, said Carolyn McNamara, a broker with the McNamara Group in Phelan specializing in foreclosures and repossessions.

"We have not seen the peak of foreclosure activity in the Victor Valley," McNamara said. "My office alone has received 18 foreclosures in the last two weeks, and I am just one of many agents that specializes in repossessions and foreclosures in the High Desert," she said. Analysts attributed the rise in foreclosures to stagnating home prices and sales resulting from a readjustment in the residential market following the homebuying frenzy of 2004 and 2005. "A lot of the loans that went bad last quarter were made at or just beyond the peak of the housing cycle between summer 2005 and summer 2006," said Marshall Prentice, president of DataQuick, in a written statement.

"Appreciation rates for most of that period were in the double digits and lenders let many households stretch their finances to the max and beyond. It's that pool of 'beyond' mortgages that the market is working its way through," Prentice said. For California homeowners behind on their mortgage payments, the median delinquency is five months before lenders initiate the default process. Statewide, the percentage of homeowners in default that are able to recover from the foreclosure process fell from 88 percent last year to 54.6 percent in the second quarter 2007. The are 8.4 million houses and condominiums in California, according to DataQuick.


© Copyright 2007 NetContent, Inc. Duplication and distribution restricted.

A SPECIAL ANNOUNCEMENT FROM THE RANCHO CUCAMONGA REDEVELOPMENT AGENCY

Reverse Mortgage Myths

The lender will own my home if I take out a Reverse Mortgage.
Not true. The homeowner retains title to their home throughout the life of the Reverse Mortgage.

My heirs will be responsible for repayment of the Reverse Mortgage.
Not True. The Reverse Mortgage is a non-recourse loan. The lender can only look for repayment from the sale of the property, although the repayment may be made from any other source and your heirs may keep the home. The lender cannot look to the estate for repayment of the loan.

Your home must be debt free to qualify for a Reverse Mortgage.
Not True. You may have a mortgage or other debt on your home. The mortgage or debt however, must be paid off first with the proceeds of the reverse mortgage.

Only those with excellent credit, income and/or health can qualify.
Not True. There are no credit, income or health requirements for a Reverse Mortgage. The only requirements are that you be at least 62 years of age, that the home be your primary residence and that you have equity in the home.

I will need to make monthly payments on the Reverse Mortgage.
Not True. The homeowner is only responsible for paying the taxes, insurance and upkeep of the home. As long as the home is your primary residence you will never have to make a payment.

Only the “cash poor” or desolate seniors can benefit from the Reverse Mortgage.
Not True. Even though some seniors may have a greater need than others for the cash or monthly income, the Reverse Mortgage can also be an excellent financial or estate planning tool.

Call Toll-Free 1-877-476-9600 to speak with one of our Loan Specialist to find out more about reverse mortgages or to request more information. There is no obligation or cost for their services.

Market Condition Report - July 2007

MARKET CONDITION REPORT

INLAND EMPIRE WEST
July 8, 2007
PROVIDED BY CHICAGO TITLE

The market stalls as demand declines and supply is relatively constant.

Price weakness looks inevitable as pending price is less than current closing price.

See all the details in the attached Market Condition Report (MCR) for the Inland Empire West area.

Selling 3 Times Is Not The Charm

Oh my gosh, it fell out of escrow a second time! Back on the market for the third time? As if once wasn’t enough?

That's the reality you’re hearing from a lot of sellers as this market cools off and the buyer’s lenders scrutinize the property values on the homes they are trying to buy with a giant magnifying glass.

Why three times, you ask? Take a look at this very real scenario . . .

A seller lists his home for sale higher than his agent recommends. The first time around the buyer and seller agreed upon a price. Of course it was more than the buyer wanted to pay and less than the seller wanted to accept, but a deal no less.

Read more>>

Don't Miss Out On What Rancho Cucamonga Has To Offer!

Living in Rancho Cucamonga is blast - but do you really know how much there is to do here? It's a good bet you'll find something new for you and your family to enjoy in the Rancho Funbook. Check out more here!