Juhani Tontti asked:




The biggest figures came from California, Florida and Arizona. The senior American, who cannot pay their mortgage loan payments, the special loan called a reverse mortgage can offer a great help, because by taking a reverse mortgage loan, they can avoid the monthly payments of the loan.

1. When The Foreclosure Threatens, Act Quickly.

The home foreclosure is a very serious thing. It will drop the credit score by 250 or 300 points for 10 years. Additionally a senior will lose the home. So there is so much on stake. If the reason, why a senior cannot pay the mortgage loan, which has been taken against the home equity, is the lack of the monthly cash, the reverse mortgage loan offers a real help.

If the mortgage loan payments are 3 months behind, you really must act quickly and take contact with your lender. When the initiative comes from the borrower and he has a suggestion, how he is going to solve the financial problem, the lender will do his best to avoid the foreclosure process.

The idea is to pay away the usual mortgage loan with the reverse mortgage and in this way to avoid paying the monthly back payments. If this is enough to carry a senior over his financial troubles, then it is worth taking the reverse loan.

2. Who Can Qualify?

The idea is to take the reverse loan against the equity of the home. So there must be enough equity left. This means, that the credit score nor the income level of a senior has no meaning, they are not even asked. The only requirements are, that a senior is at least 62 and the owner of the home, where he has equity left.

3. What Is The Real Help?

The real help to a senior is, that with the reverse loan he can turn a part of the home equity into cash money and in this way to avoid losing his home and a good credit information. When he has paid the mortgage loan for years, it is fair to use a part of it to save his rest life. And he will stay as an owner.

4. How Many Borrowers Are Allowed?

A couple or maximum three persons are accepted as the borrowers. They have not to be relatives to each other, but all borrowers must be the owners of the home and to use it as their permanent home. Of course all must fulfil the qualifications, i.e. to be American and at least 62.

5. From Where Can A Senior Get Help.

The U.S.Government has organized this in a great way. There are lots of federal counselors all over the country. These counselors are not in the payrolls of the lenders, but they are independent and thus free to give guidance to seniors.

Raul

webmaster home asked:


These days its fact that its not hard to get home loans. Either its home equity loan or its mortgage loan and availability of easy home equity loans is in full bloom. These loans are uncomplicated, tenable, easily available, very flexible and tailor-made for homeowners. The best part about all this is that almost every loan lending or financial institution offers them.

Most home buyers have to borrow money in order to purchase their home. Few have enough money sitting in the bank, or in other easily saleable assets, to pay the entire cost of the home at once. (Even those few who do have enough money usually find it financially advantageous – perhaps for extra tax relief — to borrow some of the money.) The home loans they receive is called a mortgage. Generally, a mortgage is a loan of money to the home owner secured by a “lien” on the real estate.

Own house is the dream of every person. For a middle class person, it is considered as a life time achievement as it requires quite a huge amount of money. Banks play a pivotal role in fulfilling this basic need. The products they offer and the services they provide are of immense use to people who intend to have their own house. For a safe and beneficial home loan, proper awareness over the products, policies, terms and conditions of the bank is most important as ignorance may result in more payments to the bank in terms of principal and interest components.

A mortgage is a security document that allows the borrower to keep title of the property while using the property as security or collateral for a loan. The lender then places a lien on the property in the event the owner does not pay the agreed payment. When the borrower pays off the loan, the lender gives the borrower a satisfaction of mortgage that removes the lien from the property. About half the states in the U.S. use mortgage foreclosure as the means of satisfying the loan balance.

Mortgage allows investors to pool money in a trust to lend to individuals and companies. They secure their borrowing by a mortgage over residential or commercial properties. The trust collects the interest paid on these loans and then distributes the interest, less charges, as income to investors.

Borrowers should bear in mind that there are two different kinds of mortgage points-discount points and origination points-and that lenders do not all charge the same amount for these different types of points. Discount points refer to an amount of money paid to a lender to obtain a loan at a specific interest rate. These points are like pre-paid interest on a loan that a borrower takes out for a new home, with each point equalling to 1% of the total principal amount of the loan. Origination points are used to pay for the costs of obtaining the loan in the first place. They are much less popular than discount points, as they do not provide borrowers with any valuable benefits and are not tax deductible. Borrowers are therefore better off trying to get a loan that does not require them to acquire these kinds of points.



CHUCK