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

Book Clubs and 401k's

Recently a realtor I work with invited me to speak at a book club she has been a part of for many years.

“Speak about what?” I wondered at first as I have never been in a book club.

Turns out there were two seniors in this group that wanted to learn more about Reverse Mortgages in a one on one setting.

I have been involved in a few larger workshops as a presenter to an audience of 30 or more people. Those types of presentations are great for the masses, but I think one on one or small group settings are the best.

Smaller groups don’t need power point projectors. No microphones. No stadium seating. Just me, front and center in the living room, explaining all aspects of a reverse mortgage.

Reverse Mortgages are getting more attention every day. There’s many reasons senior citizens are considering them today. Take this evening at the book club for example:

• Helen is in her 80’s and made her last payment of a 30-year mortgage only sixty days ago. Now she is looking at her possible options to use the homes equity in her favor. Her main excitement being there is no monthly payment to repay, as she is on a fixed income.
  
• Patti on the other hand owns a condo with plenty of equity. Her concern was that her retirement is tied up in their stock accounts. With Wall Street in such turmoil, and with her recent losses in her portfolio, she is debating what to do? Sit still? Pull her money out at a loss and pay tax penalties?
  A great option for her could be a Reverse Mortgage. She can create a credit line and only draw on its funds when needed.

Remember the “The Big 3” advantages of a Reverse Mortgage.

1. No Credit Score Requirements
   
2. No Income Requirements.
   
3. No repayment of the loan till the borrower leaves the primary residence.

Call me today if you would like a one on one to discuss Reverse Mortgages. Either in my office or in your living room.

Bryan Husen

Social Security will increase in 2009

Today I was reading that Social Security benefits will increase 5.8% effective this January. This is the largest increase for benefits in 27 years. Over 55 million seniors will see an average increase of $63 dollars a month. Not a huge amount, but I am sure every little bit will help. This is tough times for seniors. Retirees with fixed incomes have seen a 51% drop in buying power since 2000 with the near doubling in prices for home heating oil and gasoline, and more than double the cost of such staple foods as eggs and potatoes. This month AARP is reporting that nearly 60% of its members are having a hard time paying for basic groceries and medicine.

With these and many other issues seniors are facing financially, it doesn’t surprise me that more Reverse Mortgages are being written every year. This financing is becoming a common solution to free up income and create a more comfortable lifestyle for seniors.

Let me list 6 Great Benefits to a Reverse Mortgage that help you enjoy a more comfortable retirement in your own home:

• Independence - You continue to own and live in your own home


• Liquidity - Receive monthly payments instead of making them


• Simplicity - No income, credit or employment requirements needed to qualify


• Choice - You may receive funds as a lump sum, in monthly instalments, as a line of credit, or as an up-front sum plus monthly allotments


• Security - Does not affect Social Security, pension or Medicare benefits


• Ownership - Your heirs can keep the property once the Reverse Mortgage is paid in full

Every month I am seeing more interest in this this safe and insured program. Please contact me today to receive a brochure or DVD that will explain in great detail and help you to understand the benifits of a Reverse Mortgage.

-Bryan Husen

Seniors and Politics

I listen to talk radio when I am in my car. I like the callers and radio hosts opposing views and this year I have really enjoyed following the presidential race. It has been anything but boring. Now less than 45 days from electing a new president, things are really heating up.

Today I was listening to a national radio show, and they kept commenting on how the “Youth of America” is really going to make a difference in this year’s election. I hear this often. I am sure that younger voters are making a difference in this year’s election, but I came into the office wondering what impact older voters will have. Seniors. The baby boomers. What is the turn out like for them? What are the key issues driving this demographic to vote? I looked online to answer these questions and I am very surprised at some of the facts I found.


This year they are predicting a record turnout of more than 135 million voters in the U.S. presidential contest. Seniors are still going to make up an astounding percentage of the voters in this country. Did you know that Senior Citizens are are the most reliable group to vote in American elections?

In fact, the nonpartisan Center for the Study of the American Electorate at American University in Washington, said seniors vote at a rate of about 60 percent more than young people and about 10 percentage points higher than the national average.

Seniors are the only group in America that has been increasing its rate of voter turnout, especially in the 75-and-older range where modern medicine is keeping people alive longer.

What are the key issues that are bringing seniors to the polls? Many of them are listed in a great movement titled "Divided We Fail" which is supported by the AARP.

The concerns of seniors today are:

• Social Security
• Health care
• Prescription drugs affordability
• the Economy

In my opinion, the economy will take center stage on this upcoming vote. The current crises in the housing and financial industries and their effect on the nation's economy is of particular concern to mature Americans who, according to AARP The Magazine, own three fourths of all financial assets in the United States and account for almost half — $2.1 trillion a year — of consumer spending. These numbers cause me to think that while the youth is an important demographic in this election, the candidates best not discount the seniors of America.

The 55-plus age bracket make up 39 percent of all 135 million registered voters and 46 percent of the 90 million of those likely to go to the polls (based on Census Bureau figures from the past two elections).

What will influence your decision vote most this November 5th? What issues do you feel most passionate about?

If you are not registered to vote, be sure to do so. For more information on registration to vote, follow this link. VOTE 2008

Questions Reverse Mortgages or any other related topics, please contact me today.

Three misconceptions many seniors have regarding Reverse Mortgages.

The phone rang today and on the other end was Donna, a very angry woman. She had received some marketing materials regarding Reverse Mortgages. Donna called to tell why these were such horrible loans, and that mortgage consultants like me shouldn't be writing them!

After I listened to her, I asked her if she could list for me the main reasons she thinks a reverse mortgage is so bad? This is what she said:

"Reverse mortgages are just programs that cause retired people to lose their homes. If the families can’t afford to pay the bank, then they stick the burden on their kids to pay for it. Reverse Mortgages also effect your social security checks, and for many people, that's the only source of income they have."

She listed three main misconceptions and assumptions that many make about these programs. Honestly, she couldn't be any further from the truth. This is how I explained the few points she made.

"Reverse mortgages cause retired people to lose their homes."
This is the most common myth currently out there about reverse mortgages, and it could not be more false! People say this because they are thinking about the concept of collateral. Collateral is something that applies to mortgages and home equity loans, but it does not apply to reverse mortgages in the conventional sense because reverse mortgages do not have monthly payments. The money that is loaned to you in a reverse mortgage is recouped when you pass away or sell your home; a reverse mortgage lender will never force you to sell your home while you are still living in it in order to get their money back.

"If the families cant afford to pay the bank, then they stick the burden on their kids to pay for it."
Once again, it is very much untrue. As mentioned above, the money is lent to you because of the large equity that you have in your house. The debt is never called in until you either pass away or sell your house and because you are using the money from your home to pay back the debt after your need for the home is gone, there is no way that the debt would be passed on and forced to be paid by your children.

"Reverse Mortgages also effect your social security checks." Social security benefits are based on the contributions you’ve made over your lifetime into the social security fund and therefore there is no way they can possibly go down based on the reverse mortgage should you choose to take it out. Even if you currently happen to be on an income tested benefit, the reverse mortgage is a loan. It is not income and therefore can not affect your benefit in any negative way.

The phone call didn't end with Donna asking me to take an application for her own reverse mortgage, but it did end with me getting her address to mail her some factual brochures, truthfully explaining the benefits of a Reverse Mortgage. (She didn't have a DVD player or I would of sent her a DVD too.)

These programs are great for the homeowner that is retired, happy with their lifestyle and location, but would like to use the equity in there home to have more disposable income every month.

Please contact me today if you too would like more information. There is no obligation to see what you may qualify for.

Seniors and their RVs

I took off from work early last week. I decided to go camping in the Columbia River Gorge with my little trailer. Everyone knows I love to spend the weekends camping in my little fiberglass trailer.

The reason I left town early was because I knew I was going to be going to a first come, first serve campground. I figured if I arrived a day before the weekend I'd beat all the city campers for a good spot.

Boy was I surprised. I showed up and there were tons of people already there. What I found interesting was the majority of them were Seniors. All in different types of RVs touring the states.

I met a couple from California, Arizona, even saw one vehicle from Wisconsin. I was very envious.

Two of the campsites I visited with last weekend were very enjoyable to talk too. Both told me that part of their retirement involves touring the United States 4-6 months of the year. How great is that? I know when I get to retirement age I want to do the same sort of thing. Not sure if it will be in the same little trailer, but I know that's what I want to be doing.

If you are looking for a great place in the Gorge to camp or take your RV, visit the Viento State Park. Nice thing about this park is its less than 10 miles from shopping and dining in Hood River. Its truly a great place to get away and relax but not too far into the sticks.

Are you retired and own an RV, but a tight budget makes it hard to use it as much as you would like?

If thats the case, then please Contact Me for some possible options to make those dreams of hitting the open road become a reality.

Housing Bailout good for Reverse Mortgages??

The housing market was the leading story in all media outlets for the past week. The main focus was the nations foreclosure rates and the strength of the banks that hold the mortgages for these homes. The housing bill (HR 3221) that was passed draws most attention to the emergency funds for Fannie Mae and Freddie Mac.

But there is some GREAT news to bill HR 3221 regarding Reverse Mortgages. The bill addresses two aspects of reverse mortgages that have sometimes made them unattractive to potential borrowers:

1. Fees. Most borrowers pay hefty upfront fees for a reverse mortgage, which reduces the amount of money available to borrow. There are many stories of unethical companies taking advantage of homeowners with this loan program.

Now... this housing bill limits origination fees for federally insured reverse mortgages to 2% for up to $200,000 of a home's value, plus 1% for the amount that exceeds $200,000. This is a great way to keep mortgages companies in check! I hate stories of people being taken advantage of.

2. Loan limits. The size of a reverse mortgage is based on the borrower's age, current interest rates and the home's value. In the past, however, the maximum home value for a federally insured reverse mortgage was capped at $200,160 to $362,790, depending on where the homeowner lived.

Now... loans limits will go to $417,000, and that the high cost area adjustments to a max of $625,500 will take effect on January 1. This is great news because it will free up more money for seniors taking out a lump sum of funds, or setting up monthly installments.

A few other points to address in the new bill regarding Reverse Mortgages are:

• Home Purchase products will become available
• Requirements on counseling protocols and quality of such counseling.

This new bill is great news for seniors wanting to secure a reverse mortgage today. Its a great day also for loan originators like myself, because it will weed out unethical loan officers and their companies, and gives us more freedom with higher loan amounts to work with homeowners who may of otherwise not have been in the right equity position to take advantage of such a great program. I think now, more than ever, seniors and their families can have confidence in a reverse mortgage, and the doors it can open for a senior financially.

Be sure to call me anytime to discuss the new changes to this program, or any other questions you may have.