Avoid Foreclosure With Reverse Mortgages

Avoid Foreclosure using a Reverse Mortgage: Mrs. Smith has lived in her Philadelphia home for more than 30 years. She raised three children in the home, worked and payed property taxes. But the last few years for Mrs. Smith have been hard. Unable to keep up with property taxes, energy bills, and the high cost of medication she ended up in bankruptcy.

Mrs. Smith and many seniors like her are suffering silently and losing their homes to foreclosure because the do not realize that they can use the funds from a reverse mortgage to save the home. Here are 6 easy steps to getting a reverse mortgage and keeping your home from sheriff sale.

1. Find a HUD approved lender

The first step is to learn about reverse mortgages. They're unlike any other mortgage you've had before, but they can provide a lot of financial flexibility even while allowing you to live in and keep your home. Contact a HUD approved lender by finding one the old fashioned way, or by clicking here and taking 30 seconds to complete the online to have a lender contact you. The good thing about the form located at this site is that they only submit your request to a single lender.

2. Get Financial Counseling

To ensure that you understand the loan, independent third-party counseling is highly recommended (for some types of reverse mortgages, it's required). This is usually provided by a HUD-approved nonprofit agency, and often it can be done over the phone. The counselor will explain your options and your eligibility.

3. Apply for Your Reverse Mortgage

The HUD approved lender you contacted in step 1 will take care of this for you.

4. Loan Processing & Underwriting

As part of your loan application, I'll order title work and an appraisal for your home. In some cases, a home inspection may be required. When all the necessary information is gathered, your loan will be submitted for approval.

5. Loan Closing & Disbursement

Your loan will be scheduled for closing, and final figures will be prepared. You'll have three days after closing in which you can cancel the loan, if you wish. After that, you'll have access to the funds from your reverse mortgage, according to the disbursement option you selected.

6. Repayment

As long as your property remains your principal residence, you'll never have to make a monthly mortgage payment. Instead, you'll be able to access funds from your home through the payment option you selected.

The loan can be paid off by the borrower or the borrower's estate, typically with proceeds from the sale of the home (although a home sale is not required). The repayment option cannot exceed the home's market value.