QUESTIONS?

CALL US: 703-319-2198


Home Equity at Risk!

Published on Nov 11, 2014 | Short Sales forgiven mortgage debt solutions for underwater properties HECM Reverse Mortgage foreclosure

During the brunt of the recent mortgage crisis, when lenders nationwide faced unprecedented levels of mortgage loan delinquency in short periods of time, it was common to see delinquent mortgages sit with no adverse lender action.  The lenders did not have the time to focus on accelerating these loans and often let them sit with the equity cushion to protect their interest.

Today, however, the lending environment has changed again.  No longer will a lender allow a loan to pass the 120 day default mark and do nothing.  Lenders are aggressively accelerating these loans and pushing them through the foreclosure process.  This is even the case with people in default that have significant home equity.  If your lender is owed only 20% of the home value, as was recently the case with a 68 year old client of ours, all of your home equity is at risk and you shouldn’t assume otherwise. We should all be aware that you can lose it all with no legal recourse.

I bring this up because I believe it is important to be aware of the rights of lenders to protect their interests.  For a bank or a lender it is all about money and there is no emotion.  If you or someone you know is in this position you should immediately open up a dialog with the lender.  Be proactive and do whatever you need to do to keep your loan from being accelerated into foreclosure.

Alternatively, if you are older and retired and in this precarious position you can also utilize a Reverse Mortgage to buy out the delinquent or defaulted mortgage to protect your home equity and avoid further risk.  If you are not eligible for a Reverse Mortgage then it is in your best interest to communicate with your lender immediately and/or contact a realtor to sell your property before the lender legally moves to protect their interest and wipes out your hard earned home equity.

A Reverse Mortgage, a loan modification, or an outright property sale are all options to protect your home equity in the face of financial difficulties.
 

George H. Omilan

President-CEO

NMLS# 873983

Questions/Comments encouraged

 

Recent Posts

Blog Tags

Reverse Mortgage HECM Reverse Mortgage Retirement Planning supplemental retirement income Seniors Retirement security Financial Planning Short Sales Age in Place Traditional Mortgage Home Care Government insured mortgage lifetime income with a Reverse Retirement income insecurity HECM for Purchase solutions for underwater properties home equity access Long Term Care Jumbo Reverse Mortgage reverse credit line Social Security Financial Assessments Annuity forgiven mortgage debt mortgage Inflation Eligibility for Reverse Mortgage Specialized Forward Mortgages Mortgage Loan Process mortgage debt forgiveness act foreclosure cashflow Debt Mitigation FHA 55+ Loan modification Investor Loans Real Estate Investment Loans self-employed borrower VA LOAN private label reverse mortgage Non QM HUD Reverse to Purchase Mortgage Housing Market investor financing No Doc Investor Loans Real Estate Market VA Low Score Jefferson Mortgage Group bank statement loan Interest Rates QM HECM Changes High-Value Homes LESA Mortgage Rates Medicare Sandwich Generation Lending Limit increase DSCR 2025 changes Hard Money Loan mortgage debt relief act Mortgage Deliquency Non-recourse loan modify your loan with your lender Business Cash-flow Fiscal Cliff HECM to Purchase Senior Advocate mortgage debt Low Credit Score Reverse Mortgage Eligibility manual underwrite Fed Real Estate Economy 2023 changes growth factor downsizing HELOC Construction Loan Trump Principal Limit Factor success story Debt Treasury Commercial Real Estate 2021 Changes FINRA Housing Prices Property-based loan occupancy requirements Asset Qualifer ATR Rule assisted living LLC Asset Based Mortgage Seller Contribution Jumbo Reverse Second Trust Blanket Loan Diversification Estate Plan Senior Care Rentership Credit Score down to 500 Second Trust Gray Divorce Jumbo Mortgage Loan bankruptcy MIP Unrestricted Approval Second Trust Prequalification Non-Qualifying Loan