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How the Government Can Improve the HECM Reverse Mortgage Program Without Changing It
The current version of the government insured Reverse Mortgage is much more restrictive than in the past with regards to how much equity is available to homeowners. The latest changes that were enacted last October were directed at saving the government money from loan losses on property sales. The real underlying problem has been longevity and how to forecast it while still offering a generous program to meet the needs of retirees and seniors. After all, these two groups need a flexible means of tapping into their piggy banks to supplement retirement and they aren’t li...
May 8th, 2018 | Non-recourse loan, Reverse Mortgage, Retirement Planning, HECM Reverse Mortgage, How the Government Can Improve the HECM Reverse Mortgage Program Without Changing It
Reverse Mortgages and Social Security
Recently, there has been a lot of hype over the suggested strategy to utilize a government insured Reverse Mortgage to provide for more benefits over a lifetime with Social Security. I do not claim to know the exact reasoning or motivation behind the adverse claims made by the Consumer Financial Protection Board (CFPB) regarding this issue, but the agency feels that using a Reverse to maximize Social Security benefits is too expensive. I feel that this is a bit of a myopic view given the broad practical applications of the program but would certainly agree if this was the only...
December 12th, 2017 | Social Security, Reverse Mortgage, Retirement Planning, HECM Reverse Mortgage, supplemental retirement income, Reverse Mortgages and Social Security
Understanding Reverse Mortgage Requirements for Occupancy
There are two separate and distinct occupancy requirements for a HECM Reverse Mortgage that often get confused depending on whether you are applying for a new loan or you already have an existing reverse mortgage.The first is general occupancy requirement at application when applying for a new reverse mortgage. The program is only available for a homeowner’s primary residence. There are many items that are required to verify occupancy, such as, voter registration, driver’s licenses, federal tax filings, utility bills, credit reports, etc. It is important to note that th...
October 17th, 2017 | Reverse Mortgage, Retirement Planning, Seniors, HECM Reverse Mortgage, supplemental retirement income, occupancy requirements, Understanding Reverse Mortgage Requirements for Occupancy
Cash-strapped seniors: Weigh reverse-mortgage pros, cons
This is a great article illustrating many aspects of how a Reverse Mortgage can be a terrific retirement tool as long as you are not flagrant with your money. If you use it for financial balance and create cash flow for monthly living expenses so you can live more comfortably within your means, then it can help provide a nice path to a more secure retirement. There are also tremendous benefits, not mentioned, that will protect your spouse after your passing and many aspects of the non-recourse loan that will insulate your heirs and your estate from losses on the home should outlive your ...
April 21st, 2017 | Seniors, Retirement Planning, HECM Reverse Mortgage, Reverse Mortgage, Retirement security, Cash-strapped seniors: Weigh reverse-mortgage pros, cons
The Unexpected Risk of a Forward Mortgage for Retirees - Eliminate Risk with a Reverse Mortgage
Many retirees and seniors have forward mortgages and traditional home equity lines. All forward mortgage instruments require monthly payments. As we know, if you do not pay your monthly payments after a short period of time the lenders will initiate foreclosure and auction your property to satisfy their liens. This is standard practice with most loans being accelerated after non-payment within a 90-120 day period. The definition of acceleration, as it pertains to mortgage loans, simply means that all forward payments over the course of the term are now due. If acc...
March 7th, 2017 | Reverse Mortgage, HECM Reverse Mortgage, Home Care, Retirement Planning, The Unexpected Risk of a Forward Mortgage for Retirees - Eliminate Risk with a Reverse Mortgage
Leverage in Downsizing
As we enter the New Year, planning is on the minds of most people, especially those that are retired or considering retirement. A popular decision that often yields a big payoff is the downsizing your home for retirement. There comes a point where the large home may no longer make sense given all the unneeded space, rising real estate taxes, and general costs. There are two effective ways to downsize a home.The first is the traditional binary approach. This entails selling your current larger home and taking the net proceeds and plowing them into a smaller home that is ...
January 6th, 2017 | Retirement Planning, Reverse Mortgage, HECM for Purchase, Seniors, Age in Place, downsizing, Leverage in Downsizing
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