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Reverse Mortgage Blog

Foresclosures

August 4, 2022

A recent survey of residential Loan Servicers has found that 9 out of 10 expect to see an increase in foreclosures of homes within the next 12 months.  Some homeowners who lost their employment during the pandemic entered into forbearance agreements with their lenders, but ultimately at some point, the reduced mortgage payments and the money that was deferred has to be repaid, and if the homeowner continues to unemployed, they are facing a very serious situation and may lose their home.

Residential home values are beginning to decline and mortgage interest rates have increased, making it more difficult to be approved for a loan, especially if the borrower is an older individual and they may find themselves in a very difficult situation and unable to resume mortgage payments.

But older homeowners may have the option to protect themselves from losing their homes if they use a reverse loan.   At the least they are easier to qualify for, don't require a mortgage payment and if someone is already in a foreclosure process, they can still apply for the loan.

They are the most regulated mortgages in lending, making them a safe option for seniors to use to preserve their investments and increase monthly cash flow eliminate a forbearance agreement and avoid a possible foreclosure.

 

 

Lorraine  Jones profile picture
Lorraine Jones
I have been sharing information on my personal blog for over 20 years about reverse loans and in the last 21 years since I have been a Reverse Loan Consultant, I have experienced multiple changes in the FHA HECM program and encountered various situations with my clients who applied for the loan. My personal blog has covered many topics seniors face as they age and I have shared their experiences and their reasons for utilizing the loan while providing up-to-date information about reverse mortgages and other areas of interest. Please visit my website for more details and informational pieces and do share my website with others. https://www.reverseloanconsultant.com/
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I have been sharing information on my personal blog for over 20 years about reverse loans and in the last 21 years since I have been a Reverse Loan Consultant, I have experienced multiple changes in t...
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