A Reverse Mortgage Can Halt Foreclosure

12/12/2007

posted by N. Sioris

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A reverse mortgage, as many consumers are finding out, has many uses and benefits. During these recent months of turmoil in the mortgage market and the decline in home values, some homeowners are literally saving their homes from foreclosure with the use of a reverse mortgage.

If a senior homeowner is having difficulty keeping up with their mortgage payments, but they have substantial equity in their home, they can take out a reverse mortgage to save their home from falling into foreclosure. The way it works in a situation like this is that the reverse mortgage replaces the original "forward" or conventional mortgage. The forward mortgage is paid off completely by the reverse mortgage. The reverse mortgage is now the first lien on the property, with the senior homeowner still on title to the property as the owner.

The difference however, is HUGE. The reverse mortgage requires no monthly mortgage payments as long as the senior(s) continue to live in the home as their primary residence. Effectively, the homeowner has realized an increase in their monthly income by the amount of their old mortgage payment. And, in some cases, even more, depending on how much excess equity is in the home beyond what was used to pay off the old mortgage. Most importantly, they have saved their home from foreclosure.

Because the reverse mortgage requires no monthly payment EVER, there will never be a danger of facing foreclosure again in the future. Additionally, there are no credit or income qualifications to be approved for a reverse mortgage. For your complimentary evaluation contact us today.