Reverse Mortgage Comes to the Rescue With Forward Thinking Solutions

Reverse-MortgageIn the present scenario with runaway inflation rates and increasing inability to pay off debts, people find it more and more difficult to lift themselves out of financial doldrums, a fact that has put the mortgaglending industry in dire straits. Reverse mortgage is a very special product that has come to the rescue of many, especially the aged, and has helped them lead a life of dignity and self dependence in their twilight years. A Reverse Mortgage is a loan against your home that requires no repayment for as long as you live there. One who qualifies for a reverse Mortgage must be a homeowner with the legal rights of the property in his name and necessarily above 65 years.

The benefits of Reverse Mortgage are many and are specially calculated to help persons who are leading a retired life. They may not have an additional source of income except for probably the ownership of a luxurious home. One may have put one’s life’s earnings into that property, which with the help of Reverse Mortgage can be turned into a winning card that pulls one out of a financial crisis. At times one may no have children to leave the home to, nor anyone to repay the money that one has borrowed.

Avail a Mortgage Rescue Scheme

If your home is at stake due to financial crunches, there is hope in the form of mortgage rescue scheme. It can help you save the home and avoid foreclosure. Your struggle to save the home ends here as this scheme offers help with the mortgage payments. This is a government-sponsored program and is aimed at helping people in the UK. It protects the vulnerable members of society by providing direct financial help. UK mortgage help is for your welfare; with this plan, you do not risk losing the home.

mortgage-rescueBefore you think of approaching the government for UK mortgage rescue, it is essential to approach your lender. Typically, you can explain the situation to your lender and seek help. This help could be in the form of loan modification where the interest rates are reduced so that the monthly payment is also reduced. Another option would be to extend the term of your loan. You could also seek for an extension period, known as forbearance period, where you do not have to pay the monthly installments for a specific period. This allows you to organize your finances. These are some options that you must consider before seeking a mortgage rescue scheme from the government.

If your lender is not willing to look into the matter, you can approach UK mortgage rescue. But, there are some qualifying factors which you must clear to avail this plan. Here are the qualifying factors.

Check if You Qualify: No other home: When you apply for mortgage rescue, you will qualify for it only if you have one home. If you own a second home or a holiday home in the UK or abroad, you will not be eligible for this benefit. Market value: The market value of your home should be lower than the level set by the region. Check with your council for the level set in your area. Moreover, the outstanding balance on your mortgage loan should not be more than 120 percent of your home’s market value. Income: In order to qualify for mortgage rescue scheme, your total family income should be less than 60,000 Euros per annum.

If you qualify these factors, you can approach the financial advisors of your local council. They will inspect your home and conduct an appraisal. They will in turn approach a Registered Social Landlord to provide specific and practical help. The mortgage rescue scheme has two programs – Government mortgage to rent program and shared equity program. Both these programs are explained herewith in detail.

Government Mortgage to Rent Program: Under this program, the government assigns Registered Social Landlord to buy the property from the homeowner and rents it back to them for an amount they can afford. The homeowner no longer owns the property, but can continue to live in it. Shared Equity Program: This program is not so drastic. It lowers the mortgage amount to match the income of homeowner. The government assigns a Registered Social Landlord to grant the homeowners a loan that is used to reduce mortgage payments. This mortgage rescue scheme in the UK can help you in difficult times. It can save your home from going into foreclosure. If you have been struggling with finances, approach the government soon.

Making Money with Reverse Mortgages

By now you’ve heard that the reverse mortgage niche is one of the fastest growing segments of the mortgage industry that we have ever seen. Are you thinking about getting into this niche and capturing the avalanche of business that will surely come your way? If so, congratulations, it’s going to be a great ride. Imagine a product that not only will boost your production but will help the seniors in your community as well.

home-mortgage1It’s been called the “tsunami niche” and I think that’s an apt description of the evolution of the reverse mortgage. Even though the first reverse in our country was done back in 1961, the groundswell of interest on the part of the consumer was slow in coming. But, boy, it is here now. What factors have come together to create this environment for the perfect storm? There are several: First of all, let’s take a look at the senior population in our country today. Many of our retired folks are living on fixed incomes, having difficulty making ends meet- just paying their regular monthly bills- no luxuries. As much as 90% of all seniors today rely to some extent on Social Security just to meet their monthly obligations. With average life span approaching 77 years, living longer is certainly going to require more money than many folks had planned on.

Second, many seniors today are living off their credit cards- I read an article recently that revealed that credit card debt for those on the 65-69 age group is up 217% over the last 10 years. In addition, bankruptcy filings by seniors are on the rise.

Next, the Baby Boomers (all 77 million of them) are expected to put a further strain on already stretched programs like Medicare. In addition, changes in Medicaid laws will more than likely disqualify many people in the next several years. And many of these boomers (born 1946-1964) have not saved nearly enough for retirement. Where does that leave us? There is a significant disconnect between what people had planned for their retirement to look like, and the reality for many of our seniors. Reduced or eliminated pensions, medical bills, prescription medicines, increases real estate taxes…these are just a few of the items impacting our older adults. However, with all the varied backgrounds and individual situations, there is one thing that many have in common…the vast majority of senior citizens are homeowners. Recent statistics show that seniors own in excess of $4.0 trillion worth of real estate.

And that, folks, is where you as the reverse mortgage expert in your area can come to the rescue. We are talking about a product that can literally change someone’s life. When you attend a reverse mortgage closing (which I recommend you do) you can just see the relief on the faces of your clients and the tension just melting away. How many times in your career can you walk away from a closing knowing that you have done such a positive thing for your client (and earned a commission at the same time)?

Think you can’t possibly do this? You’ve never worked with senior clients before? You don’t know where to find them? Of course you can do this- just look around- seniors are everywhere! They are the fastest growing demographic group in our country- and this trend is sure to continue for years to come. Where do you live and work- big city, small town, rural area…no matter…there are senior homeowners in your community and they are looking for a reverse mortgage expert. Imagine for a minute what it would feel like to have the client chasing you…you are suddenly in demand. Think I’m kidding? One Reverse Mortgage Success member in Texas ran a small ad on his local radio station just to see what the response would be. He called me to say that he had to hire another FULL TIME loan originator just to handle the reverse mortgage inquiries. That is just how it happens with reverse mortgages…seniors are looking for someone to give them this information. Why shouldn’t you be a part of this tidal wave of growth? Recent estimates state that we have market penetration of less than 1-1/2%. What are you waiting for? In many areas, there is still little to no competition. And since there are no income or credit requirements to qualify, this program is the perfect solution for many seniors with impaired credit or those living on a fixed income.

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