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Paul_loefler, Real Estate Pro in San Francisco County,...

Anyone who is retired and been hard hit by housing crisis?

Asked by Paul_loefler, San Francisco County, CA Wed May 6, 2009

I work on behalf of Trulia and I'm interested to know if anyone who is retired has been especially effected by the housing crisis. How has gone/about to go into foreclosure? Difficulties with obtaining loans/using home equity lines? Impacting other part of your life - not able to do as much, struggling to pay bills because increases in loan payments, etc.?

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I am not a retired person, however one of the issues that I would like to point out to retired persons is that if you are over 62, you should explore the option of a reverse mortgage if you are having difficulty paying your bills. If you have enough equity in the property, you may be able to pay off your existing liens. One of the beautiful things about a reverse mortgage is that you do not have to make a payment. You are still responsible for paying your property taxes and your homeowner's insurance, however any principal and/or interest paid on a mortgage loan or line of credit would not have to be paid monthly. In addition, there is a form of mortgage insurance built in to the program so that if the value of your home is less than is owed on your reverse mortgage at the time of sale no one would have to come up with any money out of pocket to pay back the reverse mortgage. These products are backed by either FHA through their HECM product, or Fannie Mae in the Home Keeper. They all require the homeowner to obtain a mortgage counseling certificate before applying for the loan, which supports the fact that the person fully understands what the terms and purpose of the loan are.
Robin Silverberg
Senior Loan Officer
Preferred Empire Mortgage
rsilverberg@pemc.com
0 votes Thank Flag Link Sat Jun 6, 2009
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