Hello, I’m Mark Daly a loan originator(NMLS#317641) LocalReverse.com by Group One Mortgage. Recently I had a customer who was faced with foreclosure. She had lost her husband to cancer, she also lost his income and was horrified to find out that their life insurance policy had been canceled. She was left in a situation where she was unable to pay her mortgage and other expenses.
After countless attempts to modify her loan, she had faced the fact that her home was in foreclosure. But due to her age, available home equity and other qualifying factors, she was actually eligible for a reverse mortgage. The reverse mortgage could convert the equity in the home to pay off her original mortgage instead of selling and renting! The reverse mortgage I was able to design provide the following;
- Paid off the existing mortgage that was in foreclosure with a HECM reverse mortgage that doesn’t require any monthly payments
- Created an escrow account for future taxes and insurance payments
- Provided immediate cash at closing
- Set up an equity line of credit for future living needs
Of all the loans that I have done over my career, there is nothing more rewarding than helping a senior stay in their home. When used correctly a Reverse Mortgage can be a great tool to access the equity your home during retirement, especially in cases when homeownership is at risk..