I was in foreclosure and got approved for a mortgage?

By
Real Estate Mortgage Broker with Southern California Mortgage Professional NMLS #254430

I was in foreclosure and got approved for a mortgage?

No way! That's impossible right?  But it's true!  I was drowning in debt, my medical bills were through the roof and my home was in the process of being foreclosed on.  I didn't even have to prove income or have them run my credit report!

 

This is a real life scenario of a 78 year old widow with a home mortgage of 198,000 that was currently in foreclosure.

 

Her financial planner suggested that she contact Skyline Financial Corp. who offered her a reverse mortgage.  Her home was worth 470,000 and we were able to approve her for a mortgage of 320,540.00.  She used this new mortgage to pay off the old mortgage, cover the closing costs of 3,000 and deposit $119,000 in her bank to cover medical bills and have plenty for future living expenses.

 

A recent Wall Street Journal article reported that high levels of credit card debt and mounting health care bills have contributed to bankruptcies among 55+ year old which are at an all time high.

 

A reverse mortgage allows a  borrower who is 62 years or older to draw a certain amount of equity out of their home.  They have the choice to take it as a lump sum or as a line of credit with monthly installments to them.  They do not have to make any monthly payments and they do not have to qualify with income or credit.  This loan is based only on the borrower's age and equity in the home.

 

This is a great way to help someone who is facing losing their home, who couldn't get a home equity line of credit because they couldn't afford to pay it back.  There are many people that are unaware this program even exists.  It's our job to educate and help people that are in a bad situation, and this program could help change their life.

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Re-Bloggged 3 times:

Re-Blogged By Re-Blogged At
  1. John Axt 10/19/2010 10:57 AM
  2. Daniel H. Fisher 09/03/2011 09:22 PM
  3. Donald Reich 09/03/2011 09:32 PM
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Topic:
Real Estate General Information
Location:
California Los Angeles County Santa Clarita
Groups:
Everything California
FHA 203-k and FHA 203-k Streamline Loan Group
LA Connection
Posts to Localism
Tags:
reverse mortgage
reverse mortgage valencia
reverse mortgages valencia
reverse mortgage los angeles
reverse mortgage california
reverse

Comments 38 New Comment

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Ambassador
436,448
Paul McFadden
Mortgage Loan Officer, Bellevue Washington Home Lo
Alaska USA Federal Credit Union

Colleen: That's a great story. I don't do reverse mortgages here but pass those off to one of my colleagues. It is true. Reverse mortgages can be a house-saver! Thanks for the post!

October 19, 2010 01:17 PM
Rainmaker
476,413
Robert L. Brown
Grand Rapids Real Estate Bellabay Realty, West Michigan
www.mrbrownsellsgr.com

Did she pay cash for the house with the equity from her present home?

October 19, 2010 04:30 PM
Rainer
223,661
Donald Reich
Prudential Centennial

WOW!!!! This is news to me, and can really be a lifesaver to older homeowners in financial difficulty. Thanks for sharing with us, I will certainly pass this along to others!

September 03, 2011 09:27 PM
Rainmaker
565,341
Hella Mitschke Rothwell
Hawaii & California Real Estate Broker
(808) 226-1095 or (831) 626-4000

Colleen: It worked out for this lady who would have lost everthing. But my worry is for those who don't need a reverse mortgage YET. Since the mortgage is tied to an appraisal, and all appraisals are LOW in this market, they might be going into it at the wrong time. A client of mine did it at the height of the market and got a reverse loan of $850,000. If she did it now, it would only be about $450,000. See what I mean? Maybe the banks are winning one more time.

September 03, 2011 09:42 PM
Rainer
201,577
Mary Macy
Top Agents Atlanta Metro
Top Agents Atlanta Metro

Coleen, I agree with Hella, if a senior really does not need a reverse mortgage, this is the right step, if they don't and can wait for hyperinflation which will certainly be here before we all know it, that is the right thing to do.

September 03, 2011 10:14 PM
Anonymous
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Rainmaker
23,330

Colleen Craig

Socal Mortgage Pro
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