Affordable Home Programs

Hi N.,

Avoid the reverse mortgages. There is too much fine print. They may not all be bad but I went to an estate sale where I thought the lady had died and she hadn't. She had a stroke and was going to be in rehab at a local nursing home for 4-6 months. She wasn't terribly old so she could have come home. The fine print in her mortgage said you had to live in your home.....vacating it for that length of time was abandoning it and the bank took it.

Please be careful. I've seen some honest folks out there selling these things because they have no idea about all the fine print.

God bless,

M.

We just got done re-financing our home with the affordable "homesaver" program. They extended our loan back to the 30 years but the payments are so much lower it is incredible. And Affordable!

Hello,
I agree with the other comment. Reverse mortgage is more like a big scam.
Google homeowner assistance program. From what I understand you need to be current on your mortgage to be able to apply. Her mortgage lender should be able to direct her to the right place. They might have a 'hardship link' on their website.
As for the government program, if you do qualify, the approval can take up to a year and will mess up your credit score, but if approved the monthly pay will be much more reasonable.
Also when talking to the bank do your home work or values of properties in the area. They rather work a deal with home owners than doing foreclosure in an area where house prices dropped a lot and they will sit on the property.
Good luck!

Hello,
We applied back in December. Finally, in February, we received our package requesting documentation. After submitting all documents, I called every week. I am so glad I did.As I was informed they sent out another request for different documents, which we never received. I was able to fax this and was told that it was okay to call every week, if I wished. Needless to say, I have called every week and our request is still with the Underwriter.I was told their decision could take anywhere from 30-45 days for a response. I am hoping that we are one of the blessed ones who will not have to wait one year and face additional nightmares in this process. Hang in there as I was told there are many Home Retention programs out there not just one.

It is unfortunate your father didn't have the insurance on the house that would pay it off in the event of his passing but you can 't live life in reverse.

Any kind of refinancing she would be able to get would more than likely extend the time period of the loan to 30 or 40 years and/or change the interest rate (great for the mortgage company but not necessarily for your mom in the long run). You have to weigh the costs. They will factor in her age and life expectancy into this equation.

Would it be possible, practical, and or feesible for her to share the space with another woman around her age? Does she have any friends she could or would roommate with? Then she would have company or companionship and help with her mortgage. Perhaps she may also consider renting out her space to someone who needs space for an in home daycare. She wouldn't have to work at that business just lend some of her common space such as livingroom, bathroom, outdoor space and kitchen for use. She could use the extra income to help pay the mortgage.

If she is able to get the refinancing and even if she can't it would be in everyone's best interest to try to get the insurance that pays it off in the event of death. Makes for one less headache and if you choose to sell it, you have more leverage to get rid of it quickly if it comes to that.

I just love to think outside the box to see what else can be done outside of extending debt. I hope this helps.