Reverse Mortgage Success Story... Another use for this Financial Tool.

I am often asked why seniors would put a Reverse Mortgage against a home that they have spent years paying off, or perhaps they own free and clear.

There is really many reasons a senior may want or need to take out a Reverse Mortgage.

What I most often explain is that a Reverse Mortgage is merely a “Financial Tool” for senior citizens… a tool that can be used for many different purposes. Yet it is not necessarily a tool that is for everyone.

I’ve decided to post “Reverse Mortgage Success Stories” on my site from time to time.

Almost every HECM (Home Equity Conversion Mortgage) that I have closed with a senior citizen, has had a unique reason for taking a Reverse Mortgage against their home. I think over time you will see the many reasons a Reverse Mortgage is a great tool for a homeowners 62 and over.

Just this week I closed a Reverse Mortgage for a great woman named Barbra. She lives just south of Portland. Barbra is in her early 70’s and lives in a home her late husband built over 30 years ago.

Barbra still works everyday for the families sewing business. She has been a seamstress for over 40 years. She works because she loves what she does, but she also needs the added income for her outgoing debts.

Barbra has owned the home free and clear in the past. A few years ago she took out a loan to do some remodeling and other home improvement items. She had a total mortgage payment of $1,300 a month.

With the equity Barbra had in her home, combined with her age, we were able to close a Reverse Mortgage for her in less than 3 weeks. She no longer has a mortgage payment worry about paying, and she opted to take a generous lump sum payment for the remaining balance allowed to her.

Now Barbra doesn’t need to work for the income to cover her old mortgage, but she can work merely because she wants too. Personally I think Barbra will take much more time off to enjoy her grandchildren and only sew for hobby. We’ll see.

I have really enjoyed working with Barbra. I am glad I was able to help her. I have made great friends while specializing in this program.

If you want to know more about this program for you or someone you know, please don’t hesitate to contact me. I can provide you with literature or even a snapshot of what a Reverse Mortgage may be able to do for you. Of course there is never an obligation to see what you may qualify for.

Contact me anytime, and thanks for reading ~Bryan

email: Bhusen@sunsetmortgageco.com

How a Reverse Mortgage stopped a Foreclosure.

I have seen many reasons for a senior to take out a Reverse Mortgage over the past years.

One example has been to simply eliminate the current monthly mortgage payments against the home.

One client last summer tapped into a large amount of equity to pursue a design/invention he has patented. (He needed funds to finish the project).

I recently did a reverse mortgage for seniors in a triplex, that wanted the additional monthly tenure payments for traveling.
This type of financing has many options for a senior to help them financially.

This month I helped close a Reverse Mortgage for a family that I think is worth mentioning. A married senior couple in their Vancouver Washington home was on track to pay off their 30 year mortgage. Unfortunately they found themselves in a situation where they have now taken on the responsibility of raising their grandchildren. Expenses had gotten out of control, and they became default on their mortgage. Due to strict lending guidelines, and limited income since they are both retired, a typical refinance to avoid foreclosure wasn’t possible.

I am happy to share that a Reverse Mortgage was able to solve their financial situation. We were able to satisfy the past due balance with the homes lender, and avoid the home from being sold on the courthouse steps. Now there is Reverse Mortgage in place and no worries of a mortgage payment again. It feels great to have been able to help this family facing a possible foreclosure and ultimately losing their home.

Remember, Credit Scores and Income is not factors in a Reverse Mortgage. This loan is a great tool and qualification is based on Age and Equity of your property.

Please feel free to call or email me anytime to see if this loan could be a good option for you.

Bryan Husen email: Bhusen@sunsetmortgageco.com

Direct at 503-594-1131

Reverse Mortgages are not 'Clunky' by any means.

Today on CNN Money there is a video piece on Reverse Mortgages. This interview was featured in Revell on Retirement.

This short video simply confirms what I have been seeing for quite sometime:

Seniors are using the equity in their home to assist financially in their retirement years.

Alicia Munnell is Director for the Center of Retirement Research at Boston College. In this interview she speaks candidly about the troubles retirees are facing today. Included was:

• The future of Social Security will provide relatively less than it does today.
• Recent events have shown that 401k plans can be decimated as people are reaching retirement.

Alicia goes on to say in her interview that she feels more people will be forced to tap into their homes equity and that the best way to do so is through a Reverse Mortgage.

I like the interview with Alicia and I agree with her key points of the advantages of this program, but I have to disagree with her describing the Reverse Mortgage of today as being 'Clunky'. She uses the term 'Clunky' because she feels these loans are still need some perfection. Alicia's opinion is that these loans are expensive, that there are limits to how much the senior can access, and dislikes the regular monthly payments (servicing charges). It is also mentioned that not a lot of banks do Reverse Mortgages, and that she hopes there becomes a more streamline system for them.

I have to kindly disagree on most of her 'Clunky' concerns in several points:

1. The reverse mortgage is expensive in comparison to a conventional mortgage. Alicia didnt note that the concern for excessive fees has been addressed and safegaurds are in place. In fact, the Fedearl housing bill from last summer addresses this and even put limits into place on what the loan officer is allowed to charge. This was a great benifit to protect the senior borrower.

2. Lending limits are also not so 'clunky' these days. In a recent blog post I explained the increase in the lending limits by more that $365,000 so that the owner of a high value property can access more of their equity. I have several borrowers since this new limit has gone into effect that have taken advantage of the additional cash now available to them.

3. I think the monthly fee Alicia is referencing is reasonable. Most of the banks that I work with, and there actually is many to choose from, charge a monthly service fee ($25-$35 a month) for the monthly statements the borrower receives and to manage the Credit Line many opt to take out.

4. In regards to streamlining the process, I know it couldn’t be any easier to take out a Reverse Mortgage today. Most of my conventional loans are being completed in 30-45 days where as a Reverse Mortgage can be completed in less than 3 weeks. This is because the banks I use to write this program specialize in Reverse Mortgages and nothing else. My average Reverse Mortgage is completed in 3 weeks or less. It doesnt get much more streamlined than that!

To view this interview in its entirty, please click here. Revell on Retirement Interview

If you are over 62 years of age, and looking for a smart way to tap into your equity, contact me today. A Reverse Mortgage may be a great options for you.

Thanks for visiting... Bryan Husen

Reverse Mortgage Loan Limits Rise By More Than $365,000.

Seniors with large homes who have been waiting for higher loan limits will be pleased to know that the Congress has effectively doubled the FHA loan limit, meaning that far-larger FHA reverse mortgages (HECMs) are now available.

The old FHA loan limit was $362,790 in the lower 48 states. The stimulus package passed by Congress and signed by President Obama increases the FHA mortgage limit to as much as $729,750 for single-family homes in “high-cost” areas. Since an estimated 90 percent of all reverse mortgages are insured under the FHA HECM program, this means that vastly-larger loans will be available through reverse mortgage financing under the new standard.

This is great news for many of my Reverse Mortgage clients that have homes of high value that had decided to wait on the program because they could not access as much of their equity as they wanted.

Example from this week of how this lending limit has helped:

I have a borrower that owns a home with no mortgage in Sandy OR. The home is worth over $600,000, and with the old lending limits he was only able to access $295,000. Now, with the new lending limits his available funds have increased by almost $100,000. The lending limit increase is a great benefit from the new stimulus package.

Be sure to contact me today if you would like to see how a Reverse Mortgage can benefit you at BHusen@Sunsetmortgageco.com.