Facing a Reverse Mortgage Foreclosure? Here Are Your Options.

May 28, 2023     no comments

Hello Arlo, My mother passed away a year ago. She had taken a reverse mortgage on her home. We later discovered that my mother had not been paying her property taxes, and her home had now been foreclosed. Will they auction the home off? And exactly where do the proceeds of the auction go? If the home sells in auction for more than the reverse mortgage amount. Then where does the rest of the money go? My mother's home is valued at approximately $250.000. I'm not sure, but I think... Read Full Article

What Suze Orman Says About Reverse Mortgages (2011-Present)

May 23, 2023     no comments

Personal finance experts often address reverse mortgage questions and concerns from the general public, which typically involves a discussion of the pros and cons around these financial products. Suze Orman, known for years of experience providing personal financial expertise, including hosting the Suze Orman Show on CNBC for over a decade, has often answered questions and provided her opinions on reverse mortgages.  Orman, who in addition to her time on CNBC, has written 10 New York Times personal finance bestsellers and has appeared frequently as a guest on television shows, today hosts the Suze Orman... Read Full Article

HUD Can Help Seniors by Raising the Reverse Mortgage Floor Back to 5%

May 20, 2023     1 comment

HUD has always been about serving the underserved. They even issued a Strategic Plan in March of 2022 outlining 5 areas they would concentrate on helping serve the community. You can find that plan online here. What you cannot find anywhere in that 82-page plan is a mention of senior homeowners who have been decimated by high-interest rates and HUD cutbacks in the Home Equity Conversion Mortgage (HECM) reverse mortgage program since 2009 when HUD first started seeing problems with the HECM reverse mortgage program due in part to a... Read Full Article

Warning: Reverse Mortgage Downsides & Disadvantages

May 20, 2023     23 comments

A reverse mortgage is a loan, and as with any loan, there are benefits, and there can be downsides. Here, we will address some of the pros and cons of reverse mortgages for qualifying individuals aged 62 and older. The reverse mortgage is a home loan that allows qualifying borrowers to borrow against their home equity. Most reverse mortgages are Home Equity Conversion Mortgages, meaning the Federal Housing Administration insures the loan, providing some guarantees to both the lender and homeowner.  First, the Upsides:  A reverse mortgage can offer many benefits to... Read Full Article

10 Best Reverse Mortgage Lenders of 2023 (Compare Rating & Reviews)

May 20, 2023     32 comments

A reverse mortgage can add stability to your retirement years when used correctly. Selecting the right reverse mortgage lender to originate your loan is essential. We created this guide to provide insight into how HECM lenders are rated and how reviews are collected across the web (independent and sponsored review sites). 5 helpful tips when selecting a reverse mortgage lender: #1.  Get your reverse mortgage from a lender looking out for YOUR best interests. Many people are convinced that they need... Read Full Article

The Complete Guide to Understanding Reverse Mortgages

May 16, 2023     75 comments

Reading time: 25 min What is a Reverse Mortgage? A reverse mortgage is a loan. It is not a government grant. You are not selling your home to the bank and are still on title to the property. Just like any other loan, you are still responsible for the payment of your taxes and insurance, but unlike other loans, with a reverse mortgage, borrowers are not required to make regular payments of principal and interest or interest only for as long as you live in the home as your primary... Read Full Article

Protecting Your Home from Reverse Mortgage Foreclosure Threat

May 10, 2023     no 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, a retired veteran.  Before wasting your time, I read some comments on this site and found a few similar ones, but I need clarification, so I am asking for help... Read Full Article

How a Reverse Mortgage Works: Explained in Simple Terms!

April 24, 2023     64 comments

A reverse mortgage is a loan that allows seniors to borrow against the equity in their home without making monthly mortgage payments. The most common type of reverse mortgage is the Home Equity Conversion Mortgage (HECM), a program insured by the Federal Housing Administration since 1988. The amount of funds available from a reverse mortgage is based on the age of the youngest borrower, home value, and current interest rates. Funds received are tax-free and may be used for virtually anything. You may take funds in a lump sum, a line of credit, monthly... Read Full Article

Top Banks Offering Reverse Mortgages in 2023

April 24, 2023     15 comments

When getting a reverse mortgage, you may start by wondering which type of lender to work with, specifically, which banks offer reverse mortgages. Perhaps you used a national or regional bank for a mortgage loan in the past, as many of the big banks provide mortgage lending services. It's possible you worked with a non-bank mortgage lender, as these companies are also active in the mortgage lending space.  Many banks offer reverse mortgages, although most major national banks, such as Wells Fargo, Chase, and Bank of America, do not offer them.... Read Full Article

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 the full line of credit. Rates had been creeping up quickly in recent weeks, driving borrowers’ available funds on reverse mortgages down. Still, when Signature Bank... Read Full Article