HappySeniorHomeOwners Blog

MAJOR CHANGES TO REVERSE MORTGAGE PROGRAM 
VERY SOON

THESE CHANGES WILL NOT AFFECT LOANS ALREADY CLOSED OR IN PROCESS THAT CLOSE BY THE DATE DETERMINED BY HUD IN THE NEAR FUTURE.
 You are still on time to prevent these changes from affecting you if you have not applied for a Reverse Mortgage.

CHANGE 1 – VERY CERTAIN

After a Date, to be announced very soon by HUD, new applicants will have to go through “financial assessment”. This mean that FHA wants to be sure that they have the sufficient means to support themselves and still be able to pay for the Property Taxes, Insurance premiums  ( “property charges”) and the willingness to do so.

In the past, many Seniors, spent all the funds received from the Reverse Mortgage and stopped paying the “Property Charges” on their home.  

Since these two conditions are obligatory in order to maintain the mortgage on the home, failure to pay them has led to a default,  foreclosure and loss of some Senior’s homes.

Neither the Government nor the Lender want to see a Senior lose their home.

In order to determine the financial CAPABILITY, HUD wants to analyze: 1) INCOME: from valid sources (some exceptions may apply), investments and the proceeds received from the Reverse, etc.., 2) EXPENSES: such as utilities, and “Property Charges” of all properties owned, among others.

Also to be considered is your WILLINGNESS: Credit History and financial responsibility of the Senior. Some extenuating circumstances might be considered.

As of this date, there is No Credit and No Income qualification to get a Reverse Mortgage

The new guidelines might require, in some cases, that a “Set Aside” reserve be established to pay for future taxes, insurance premiums and property charges for a few years. This would reduce the amount that can be received from the Mortgage, but might prevent a foreclosure in the future. 

It could also be that the funds received might not be sufficient to pay off the present mortgage.

If you have any situation that might impede you from getting a Reverse Mortgage once the guidelines are implemented, you must act immediately! Learn your options, before it is too late. Call 786-262-6486 and let us help!

These measures will REDUCE the number of Seniors that could get a Reverse Mortgage. It will be beneficial to the ones that will be able to obtain them by increasing the possibility to stay in their home.

CHANGE 2 – MOST CERTAIN

EXTREMELY POSSIBLE REDUCTION IN THE AMOUNT YOU CAN GET FROM A REVERSE MORTGAGE:

Each October, for the past few years, HUD has reduced the amount that a borrower can receive from a Reverse Mortgage. It is usually announced in September. October is around the corner. The conditions exist for HUD to reduce the amount again. If you are thinking of getting a Reverse Mortgage, please don’t wait until it is too late.

CHANGE 3  – VERY POSSIBLE

VERY POSSIBLE REDUCTION OF THE MAXIMUM LOAN LIMIT FROM $625,500 TO $417,000 the Statutory Limit. Congress has extended this limit for several years, but it ends on December 3, 2014, unless Congress extends it, and there is no talk at this time of doing so. It does not affect any Reverse Mortgage already in effect before that date.

This would affect those owners whose properties are valued between $417,000 and $625,500 or more, as they would lose about 33% of the proceeds of a Reverse Mortgage.

Write Your Senators

Write Your Representative

If you or any one you know has been postponing getting a Reverse Mortgage, DON’T wait any longer. Call me today. 786-262-6486

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