Author Archives

Protecting Your Home from Reverse Mortgage Foreclosure Threat

May 10, 2023     2 comments

Dear ARLO, I just returned from the hospital, where my uncle was transported by his neighbor, thinking he was having a heart attack.  My uncle said he almost passed out after receiving a letter from his reverse mortgage lender threatening to foreclose. I was told he may be discharged tomorrow, but I need to quickly step in to help him,...
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Are reverse mortgages FDIC-insured, and do banking failures affect them?

March 20, 2023     no comments

This will be welcoming news if you are worried about reverse mortgages being non-FDIC insured. Fortunately for reverse mortgage borrowers, reverse mortgages are not FDIC-insured and, therefore, are not endangered by all the turmoil with banks at this time. The U.S. Department of Housing and Urban Development (HUD) guarantees the reverse mortgage. Specifically, HUD guarantees that the borrower can access...
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Reverse Mortgages Are No Longer a “Last Resort”

January 18, 2023     2 comments

I've been told to wait on taking a reverse mortgage as a last resort.  Why? Let me start by saying that we are a reverse mortgage lender who will be the first to tell you that reverse mortgages are not for everyone.  But that's true of any financial product, and no loan is perfect for everyone. A reverse mortgage can...
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What is AARP’s Role in Reverse Mortgages?

November 29, 2022     21 comments

The American Association of Retired Persons (AARP) is a large, independent, nonprofit organization dedicated to helping people aged 50 and above achieve financial independence. While the organization, which serves 37 million older Americans and counting, doesn't offer reverse mortgage products directly, it does weigh in on them in some significant ways. Here's where AARP comes into play for retirees who...
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Why Higher Rates Can Make the Best Time for Reverse Mortgages

October 26, 2022     no comments

Why would someone use a reverse mortgage while rates are up?! Due to inflation, interest rates have been climbing since early this year and borrowers receive less money on the loan at today’s rates than they did even a year ago.  However, it may still make sense for seniors to consider a reverse mortgage over moving, and here’s why.  Senior equity...
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Reverse Mortgage Servicing: Setting the Record Straight.

September 28, 2022     38 comments

[arlo_toc] Understanding Reverse Mortgage Servicing Reverse mortgage servicing is a vital yet often misunderstood part of the loan process. While borrowers focus on securing their loan, many don’t realize that servicing plays a long-term role in managing their reverse mortgage. A reverse mortgage moves through several stages: it starts with origination, proceeds to closing, and then enters the servicing phase—where...
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How a Reverse Mortgage Deed in Lieu of Foreclosure Works

September 19, 2022     76 comments

My mom procured a reverse mortgage when property values were high. She can no longer live alone in the home and has vacated it; we cannot sell it because the home has devalued in accordance with the failed economy. The family is attempting to process, through an attorney, a Deed in Lieu of Foreclosure, but the loan has been transferred...
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Reverse Mortgage Expected Rate is Key to the Principal Limit

September 12, 2022     6 comments

Many homeowners understand that when they qualify for a reverse mortgage, they're eligible for a loan amount that's a percentage of their home's value or the HUD Lending limit, whichever is lower.  This amount, commonly known as the 'Principal Limit,' is a key factor in reverse mortgages. Yet, the 'Expected Rate' is a lesser-known aspect that significantly impacts the available...
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2022 Reverse Mortgage Limits Raise to Record $970,800!

September 9, 2022     6 comments

BREAKING: 2023 Reverse Mortgage Limits Reach All-Time High $1,089,300! HUD just announced their high-cost limits for Alaska and Hawaii. Based on the fact that the Home Equity Conversion Mortgage (HECM) limits normally follow these States, we can safely guess that the HUD HECM limit for 2022 will also jump to $970,800 for all new applicants as of January 1,...
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Reverse Mortgage Manufactured Home Requirements (2025)

September 6, 2022     64 comments

If you're the owner of a manufactured home and you're wondering about your eligibility for a reverse mortgage, here's the short answer: you may be eligible.  Now for the longer answer. As with any prospective borrower, you must be 62 or older, legally own the home, be your primary residence, and be eligible for participation in Federal Housing Administration programs....
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