Reverse Mortgage Could Stop Foreclosure For Tennessee Woman

5/21/2009

posted by N. Sioris

Stumble It!

A 73 year old Tennessee woman is trying to stop the foreclosure of her home with a reverse mortgage. She has been approved for the reverse mortgage, but when her home was appraised, the value of her home was not sufficient enough for the reverse mortgage to entirely payoff her existing mortgage.

Many folks have been able to successfully prevent home foreclosure by using a reverse mortgage, which allows them to payoff the full balance owed on their homes and then live mortgage free for as long as they remain in the home.

The caveat, however, is that the appraised value of the home is the most important component to determine how much money a senior is allowed to borrower from a reverse mortgage. In the case of Lorraine Zickefoose from Alcoa Tennessee, her homes' value was not high enough to completely satisfy her current "forward" mortgage balance.

She is now facing eminent foreclosure unless she can come up with the difference between the amount of money she can get from the reverse mortgage and the loan balance on her current mortgage. As you can see from the video clip linked below, her church and community are rallying around her to try to raise the necessary funds in order for her to save her home from foreclosure.

Even though Lorraine's story is not finished yet, it is clear that without a reverse mortgage she would have had no hope of saving her home from foreclosure. Now with the help of her community and the proceeds from the reverse mortgage, she has a shot at saving her home and being able to live mortgage free for the rest of her life.

Watch her story here: