I’ve never entirely understood what a reverse mortgage
is, have you? I know that they’re meant for people over 62, but I’m not sure
why someone would want to have one. What’s the point of them? And is there such
a thing as reverse mortgage foreclosure? According to an article referred to me
by Credit-yogi.com, a reverse mortgage allows folks older than 62 to borrow
money against their homes’ value which they don’t have to pay back. The point
is to give these people some money to have fun with or fix the roof with or
what have you. Sounds reasonable to me, but can a reverse mortgage be
foreclosed on? Yes, it can be. As with a regular mortgage, a reverse mortgage
has fees. Origination fees and loan servicing
costs are just two of them; talk with your lender about others that are
attached to your reverse mortgage. You also need to know if your mortgage has a
fixed or variable interest rate; if it’s variable, the nice payment now could
increase as rates change. Know, too, that the principal and interest on your reverse
mortgage increase as you borrow more against your house’s value. This can make
your payment go up over time.
A truthful, upfront lender will tell you that a reverse
mortgage can be foreclosed on if you can’t keep up with the monthly fees and
interest rates. I guess in that way, a reverse mortgage isn’t so different from
a regular one. Unfortunately, late payments on your mortgage and foreclosures
often go hand-in-hand. Banks and other financial institutions don’t like
foreclosing because it costs them money, but they also cannot let a homeowner
live in a house he isn’t able to pay for. Only after sending a Notice of
Default can a lender begin the foreclosure process. There are, however, ways to
get a loan to stop foreclosure before it is completed. Apply for a refinance
loan of for loan modification through your lender. These can be done in-house
if your bank has such a program. Another possible solution to the question “how
can you stop foreclosure” is to turn to the government. The Obama administration
developed the HAMP and HARP plans to help troubled homeowners keep their homes.
Apply for these federal aids through your credit union or other financial
institution.
If you’d like more information on the topic of
foreclosure prevention, contact a well-established consumer resource website
such as http://www.credit-yogi.com/foreclosure/mortgage-foreclosure-facts.php. These fine folks have the power of over 260,000
professionals schooled in issues of finance and law behind them and can of
exceptional assistance to anyone seeking answers in these areas. Give them a
call at 866-964-9644. You’ll thank yourself for it.
