Sat 1st Nov 2008, 21:50
I am not able to pay for mortgage
I am 63 years old woman. Unfortunately I am not able to pay for mortgage and other living expanse. I looked into a reverse mortgage solution. Does It really help?
Sat 1st Nov 2008, 22:38
Hey, Claracitta, welcome to BAF.
I do not know anything about Reverse Mortgages, so I am unable to help you out directly, but, I will quiz my contacts and see what I can learn for you.
Sun 2nd Nov 2008, 03:03
Hi Claracitta, welcome. I'm sorry to hear that and would like to try help you best I can.
I'm no expert on reverse mortgages but I know that you do need to be extra careful as there's a lot of scams out there. I'd suggest you look at trusted sites for seniors like the AARP site. They have a whole section devoted to the subject.
You may also be interested in this USAToday article about what to look for.
Have you been in touch with your mortgage lender at all to explain the situation? It's important you let them know. I've worked in banking and I can tell you it happens every day. They'll do very best to come to a realistic arrangement with you if you just get in touch.
It may be better to see what they can offer before going down the road of a reverse mortgage. Sometimes it's a payment freeze for a certain amount of time or reduced payments. Please don't wait until it's overwhelming and you're way behind. The sooner, the better.
If you're a church member (or even if you're not), you can consider contacting your local pastor - churches are often willing to help out those in need but again can only do so if you tell them. You can arrange to speak to them in confidence.
Good luck, Claracitta.
Sun 2nd Nov 2008, 14:11
Welcome to the Business Advice Forum Claracitta. Sorry to hear of your situation.
Kay's advice on the subject of reverse mortgages is really a good one. First thing to remember is that there are a lot of unscrupulous people out there who would still like to take advantage of other people even if they're already having difficulties. So it would be good to look out for scams.
I'm also not familiar with reverse mortgage so I did some reading on it. I'll describe the pros and cons below.
- If you don't have other significant assets, then you can resort to reverse mortgage
- You will still be living in your house and don't have to sell it
- Interest rate is usually higher by 1.5 to 2% than traditional mortgage
- Origination fee which will be the greater of $2000 or 2% of the maximum qualifying amount
- Very unlikely of keeping the house in the family
Sun 2nd Nov 2008, 18:35
Welcome to Business Advice Forum Claracitta and thanks for posting your question.
It's probably not much consolation but you are far from being alone, with this problem. Due to the economic downturn there are millions of people, not just in the US but all over the world, in the same situation as yourself.
I agree with the suggestion that you should speak to your mortgage lender. They want to work and co-operate with their borrowers, to help them get through these situations to the benefit of them and you.
Are you currently in employment?
Have you considered ways that you might increase your income, eg by working some overtime, or getting a part-time job?
Have you got skills or experience that you could use to earn some additional money?
What about making some income from your house, could you bring in a lodger and rent out a room? Obviously you need to be careful regarding your security.
Could you rent out a garage or even a parking space?
If you tell us a little more about your circumstances we should be able to offer you some more suggestions.
Please do reply back to update us on how it is working out for you.
We all wish you the very best of luck and hope it works out for you.
Fri 10th May 2013, 11:59
A reverse mortgage could be good idea for seniors who are 62 of age and over,if you own your home outright,but don’t have much cash-flow.But before taking it advised to meet a reverse mortgage expert.He will help you in taking decision as to whether a reverse mortgage product is right for you and will meet your specific needs.
Last edited by reversemort; Fri 10th May 2013 at 12:03.
Reason: small correction