Reverse Mortgages: A new weapon in the foreclosure battle

The spate of foreclosures, instead of being a short lived phenomena, will remain with us for the foreseeable future. The Sunday Business section of the New York Times featured the case of Mamie Ruth Palmer. This article is interesting for two points it makes. To wit: The bank agreed to reduce her balance and accept the proceeds from a reverse mortgage as payment in full. The plaintiff (bank) in these actions may not have standing (the right to sue) because as these loans get sold in the secondary market, assignments may be wanting.

Ms. Palmer suffered through 6 years of “foreclosure hell”. Her suffering through this foreclosure action just may have some redeeming value. She was fortunate because she was able find a lawyer that took her on as a client. The purpose of this particular post is not to look into the reason (s) the foreclosure happened. Our purview is not to look into why Ms. Palmer got stuck in her financial quagmire. By now all of us should know that there is plenty of blame to spread around for the mortgage debacle. Rather her case points up why reverse mortgages could be relied upon as an important financial tool.

It appears that courts around the country are looking at these foreclosure cases with a new set of eyes. No longer are they accepting the lender’s position. They are starting to look behind the facts to determine whether that lender has the right to bring the action at all.

When a loan gets sold in the secondary market, the loan must be assigned to the new lender/ investor. These assignments are often not drafted, or recorded. In New York, for example it was difficult to do consolidation extension and modification agreements because of issues with the assignments. Because lenders deal with pools of mortgages it is easy to see why assignments can be missed.

Accordingly, the reverse mortgage can perhaps be used as a bargaining tool whereby the existing mortgage balance gets reduced to an amount that can be satisfied with the use of a reverse mortgage.

vist: www.secureseniorliving.org , www.unitedlossmitigation.org

REVERSE MORTGAGES OFFER GREATER PROFITS FOR WALL STREET

The reverse mortgage industry is beginning to take on a Kafkaesque quality. On the one hand, you would think with the debacle in the sub-prime mortgage markets investors (Wall Street) would be savoring the succor of a safe, inoffensive mortgage product, like the reverse mortgage. By its terms, it does not contain the detritus that these alternative mortgage products had. Instead, the clerisy of Wall Street pundits, fearful of making another fatuous decision, have chosen to ignore the one sector of the mortgage market that they should be embracing.

Yet these pundits in essence say that "ALL MORTGAGE PRODUCTS ARE BAD". I urge those that have great vision, those who pride themselves on seeing what others can not see, to take another look at both sides of the reverse mortgage program- The HECM-government insured loan and the proprietary loan/"jumbo loan". These programs are safe and secure because no monthly mortgage payments are made, there is no income , assets and credit requirements, 50% or less LTV(depends on the program) is the norm and these loans have an average life of 7-10 years.

This country has 78 million baby boomers. The oldest become 62 this year. This means that each day for the next 20 years over 10,000 boomers a day will become 62. Today there is in excess of 4 trillion dollars of home equity that can be accessed. This will more than double in 10 years.

The National Reverse Mortgage Lenders Association, HUD and AARP and the passel of incredible caring folks that make up this great industry have worked hard to make this nascent industry the shinning light of the mortgage industry.

Accordingly, there are yet many reverse mortgage products to create, companies to develop and mergers to attract. The best part of it all, is that the more we as an industry can do, the better our clientele - our elders will fare.

Yes ,the reverse mortgage industry has much work to do. Let's stop painting w/ that broad brush and get to work. ALL MORTGAGES ARE NOT THE SAME.

for more information on a reverse mortgage, go to www.secureseniorliving.org

Why It Is A Good Time To Get A Reverse Mortgage

Contrary to what many people believe, it is a great time to consider getting happily involved with a reverse mortgage.

Often you hear property values are going down. "I will not get as much as I hoped, if I get a reverse mortgage today".

Often one hears that an adjustable rate reverse mortgage is no different than a subprime or alt-a loan. An adjustable rate reverse mortgage loan is light years better than the aforementioned mortgages. Those that seek to conflate the Alt-a and subprime mess with reverse mortgages clearly lack an understanding of the issues.

So let's dissect the component parts of a reverse mortgage and compare it to those mortgages that caused the melt down in the mortgage industry. I will debunk "the home values are going down so it is not a good time to get a reverse mortgage" issue later in this article.

There is no income, asset or credit requirements with a reverse mortgage. The ability to make monthly mortgage payments to the lender is a non issue because this is NOT REQUIRED with a reverse mortgage.

Some of the Alt-a and subprime mortgages had such loose underwriting guidelines that it appeared that there was no income, asset or credit requirements either. However, the borrower had to make monthly mortgage payments to the lender. AND because interest rates adjusted at a point in time, this affected the amount of the monthly mortgage payments that the borrower had to make. Because the borrower was qualified on the lower teaser rate, (that was the only way they could meet the loose underwriting guidelines) they did not have the money to continue to make mortgage payments at the higher rate.

Let me repeat: MONTHLY MORTGAGE PAYMENTS ARE NOT REQUIRED TO BE MADE TO THE REVERSE MORTGAGE LENDER. IN FACT, IT IS THE LENDER THAT MAKES PAYMENTS TO THE BORROWER PURSUANT TO THE BORROWERS' WISHES.

The "value" argument as above noted, is a false argument as well for those homes that are valued above the FHA limit for their community. Those homes that have a value above the FHA limit (in their county) will receive the maximum dollar benefits even though the home has lost some of its value. The reason is that the decreased home value remains above FHA's magic number.

Also it is important to know that reverse mortgage note rates are currently in 3% plus range. The recent Federal Reserve action is partly responsible for these low rates.

Because of the money flocking into the bond market, the yields on the bonds are also at a low level. These yields help determine the benefit amounts. These yields are currently below the FHA floor. This means that benefit amounts are being maximized.

So it is a wonderful time to be CONSIDERING a reverse mortgage. Low interest rates, value's often still remain above, at or just below FHA's limits, and these loans are safe and secure because you do not have to make monthly mortgage payments.

for more information on a reverse mortgage, visit: www.secureseniorliving.org or for fha loans: www.fhastreamlineonline.com

THE REVERSE MORTGAGE "MISCONCEPTION PROBLEM

Many reverse mortgage “experts” will tell you that the amount of people obtaining reverse mortgages will continue to grow at an extraordinary pace. Conflating the industry’s claim of 100 per cent growth in prior years, with the fact that the oldest baby boomers will reach their 62nd birthday at a rate of 10,000 per day, provides all the proof needed to suggest that this industry will continue to enjoy exponential future growth. Those of us that love this industry must continue to fight this complacency to think this way.

It is time to wake up somnambulant reverse mortgage companies that believe incredible growth will continue as a matter of right. The sophomoric reasons proffered ignore the "misconception" barrier that needs to be overcome. Those of us that love this industry must continue to support and get involved with the colossal efforts of the NRMLA (National Reverse Mortgage Lenders Association - the industry trade group).

It has been 19 years since the first FHA/HECM reverse mortgage closed. Yet there still remains an aggregation of misconceptions that continue to be repeated as if they were concrete facts. I have heard these statements from clients, prospective clients, family members and professionals. The power of the internet provides the Petri dish for spreading & cultivating these falsehoods.

As a student of this loan program, I confess that I am dismayed by this constant stream of misconceptions that, like the proverbial stop sign, halts seniors dead in their tracks. Sadly it is often this program that provides the solution (too often ignored) that solves the seniors’ problems.

All of us in this industry must work together to give our elders the best information available. This means telling the client who has better options, to pursue those options. It means telling the client that you do not know the answer, instead of making one up. It means abiding by the industry’s code of conduct. It means caring a lot about honesty and integrity. And it means challenging yourself each and every day to be a little bit smarter and better than you were the day before. This partly means being an ambassador for the industry. If you haven’t published an article-start writing. If you do not have public speaking experience, do it. A Chinese proverb says, “The best time to plant a tree was 20 years ago. The second best time is TODAY”.

For all your reverse mortgage information, go to www.secureseniorliving.org

A message from a Las Vegas, Nevada Home Loan Consultant

As a Mortgage Home Loan Consultant in Las Vegas, Nevada, I understand that our market has plenty of bumps and bruises. I firmly believe that the Las Vegas Market will soon rebound and continue to be a city that the rest of the country uses as a benchmark. When that time comes I will still be originating home loans ethically and with integrity! Las Vegas, NV has many advantages that a majority of the country could only hope for. As a long time resident of Henderson, NV since 1996 I have seen Las Vegas grow leaps and bounds over the last 11 years and will continue to serve the Las Vegas valley.

The current trend in Las Vegas and the entire country seems to be moving back to government loans. Specifically, FHA Loans and VA Loans . It is important that any lender that you are dealing with is approved to these type of loans. I have several years experience in the FHA and VA arena and can help guide you through successfully.

A majority of the Mortgage Loans I close come from past client referrals. I treat each client with respect, honesty and integrity. When they walk away from a Mortgage Loan transaction, they walk away confident and informed about their Las Vegas or Henderson home loan! I will work hard for you from mortgage loan quote, to pre-approval , to Online Mortgage Application or In-Person Application, to Underwriting Approval to attending your first BBQ!

My Home Loan commitment to you and the entire Las Vegas Valley:

It is important to me that every person I work with know they can expect the following:

1. Excellent Customer Service - Purchasing a Las Vegas or Henderson home is the single largest investment most people will ever make. It is important that everyone involved knows where we are at in the process at all times.
2. Accessibility - I want you to know what's going on with your home loan! My direct line is accesible to people so that they can get their questions answered!
3. Flexibility/Perseverance - I WILL find the best loan program for you and I rarely accept no for an answer when dealing with Las Vegas mortgage lenders.
4. Honesty/Integrity - I will NEVER promise a mortgage loan program that cannot be delivered! In every home loan scenario you will have knowledge of each and every item that may affect you.
5. No Surprises! - For you as a homeowner, potential homeowner or your new home buyer. You will not be surprised one week from the mortgage or transaction closing! If I have knowledge of something, so do you!

As a Henderson, Summerlin, and Las Vegas, Home Loan Consultant, I handle all types of loans: Conventional, Jumbo, Non-Prime, FHA, and VA, as well as every type of loan program.

Please visit the site to learn more about buying a home, refinancing your current mortgage, and the loan process. Call me today for your fast Las Vegas, Nevada Mortgage Quote.

The bottom line is:

I get the job done!

Las Vegas FHA Loans and VA Loans:

Las Vegas FHA Loans

There are many good reasons to choose an FHA loan, especially if one or more of the following apply to you:

• You're a first-time homebuyer (You don't have to be)
• You don't have a lot of money to put down on a house
• You want to keep your monthly payments as low as possible
• You're worried about your monthly payments going up
• You're worried about qualifying for a loan
• You don't have perfect credit
• You're worried about what will happen if you fall behind on your payments
• You need to refinance but you owe MORE than you home is worth

Want to know more about Las Vegas FHA Loans? Visit my FHA Loan Home Page

at www.fhastreamlineonline.com

www.fhastreamlineonline.com

or for

Las Vegas VA Loans

go to www.vastreamlineonline.com

The VA Zero Down Home Loan is one of the best kept secrets in lending. In the past, many 100% Financing options have over shadowed this home loan but recently we have seen a tremendous resurgence especially in the Henderson and Las Vegas, NV area. This loan is quite simple to understand and qualify for.

• No Down Payment
• No Income limit
• The Loan is Guaranteed by the Government (This is the banks reassurance that in case of default they may still be able to recoup their money)
• No upfront or monthly Mortgage Insurance
• This loan may be assumed by a qualifying person

Want to know more about Las Vegas VA Loans? Visit my VA Home Page at

www.vastreamlineonline.com

www.vastreamlineonline.com

www.vastreamlineonline.com

Refinance VA Loans in Las Vegas

I have always been a big fan of VA Loans. In the Las Vegas area, VA Loans have become extremely popular for many reasons. First, the VA has not instituted a 5% Soft Market Policy in Distressed markets. What that means is that it is becoming increasingly more difficult to buy a home with no money down. Unfortunately, Fannie Mae AND Freddie Mac have put Las Vegas into this category.

However, with your VA Loan benefit you can still use a purchase a property with NO Down Payment. This is exciting for the Men and Women that have served our country.

So many people know about buying a home with your VA Benefit BUT most people don't know that they can refinance their home into a VA Loan weather or not their current loan is through the VA. Some outstanding key options for a VA Refinance are:

• 100% Rate and Term Refinance available if you currently have a Non VA Loan
• 90% Cash Out Refinance Available
• Interest Rate Reduction Refinance Loan (IRRRL) available that will lower the rate of your current VA Loan with very little qualifying

I have been a huge advocate of government loans for Las Vegas properties in recent months. If you have any questions please feel free to contact us as www.vastreamlineonline.com.

www.vastreamlineonline.com
www.vastreamlineonline.com
www.vastreamlineonline.com
www.vastreamlineonline.com
www.vastreamlineonline.com

Removing MIP from FHA loans

Removing MIP from FHA Loans is one of the happiest moments for most borrowers in FHA Loans. However, I am continually asked by loan officers how and when these payments end. The misunderstanding of this is almost pandemic.

Mortgage Insurance Premiums on FHA Loans are not the same as Private Mortgage Insurance on conventional loans. Additionally, they differ in how and when they are removed from the loan. For those of you that have questions about how and when MIP does come off FHA Loans, please CLICK HERE to get more information.