HappySeniorHomeOwners Blog

Financial Assesment Effctive April 27, 2015

February 27th, 2015 6:06 PM by Juan Luis Rodriguez-Kohly

FINANCIAL ASSESMENT
FOR NEW REVERSE MORTGAGE APPLICATIONS
 EFFECTIVE APRIL 27, 2015

THESE CHANGES WILL NOT AFFECT LOANS ALREADY CLOSED OR IN PROCESS THAT CLOSE BY THE DATE DETERMINED BY HUD IN THE FUTURE.

Starting April 27, 2015,  new applicants will have to go through “Financial Assessment”. This means 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  This will change April 27, 2015

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!

 

Posted in:General
Posted by Juan Luis Rodriguez-Kohly on February 27th, 2015 6:06 PM

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