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