HappySeniorHomeOwners Blog

Financial Assesment For Reverse Mortgage Applicants Starts March2, 2015

November 12th, 2014 1:01 PM by Juan Luis Rodriguez-Kohly

On Nov 10, 2014,FHA announced that there will be more changes to the FHA Reverse Mortgage Program "HECM"  effective March 2, 2015

 
This will reduce the amount that some Borrowers might receive.

Then, new applicants will go through "financial assessment" which mean that FHA want to be sure that they have the sufficient means to support themselves and still be able to pay for the Property Taxes, Charges and Home Owners Insurance.

The reason for this change is that in the past, many Seniors, spent all the funds received from the Reverse Mortgage and stopped paying the Taxes and Insurance 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 and to foreclosure and loss of some Senior’s homes.

Of course, neither the Government nor the Lender want to see a Senior lose their homes.

In order to determine the financial capability, the proceeds received from the Reverse,  income from valid sources, investments, etc.., will be considered. Expenses, such as utilities, property taxes and insurance of all properties owned, among others.

 Also to be considered is the Credit History and financial responsibility of the Senior.The Program might require that a  "Set Aside" reserve be established to pay for future taxes and insurance premiums for a few years. This will reduce the amount that can be received from the Reverse, but would help to prevent a foreclosure in the future. 

 These measures will limit the number of Seniors that may get a Reverse Mortgage. However, they will be beneficial to the ones that will be able to obtain them by increasing the possibility to stay in their home. 
 
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 or email at RodKohly@gmail.com
 

Your comments will be appreciated. Post here or send them to RodKohly@GMail.com   *   For most answers call me at 786-262-6486  or visit http://HappySeniorHomeOwners.com   (English-Español).  Follow me in Facebook: http://Facebook.com/RodKohlyLO    To tell a friend visit  http://www.happyseniorhomeowners.com/tellfriend.aspx

Posted by Juan Luis Rodriguez-Kohly on November 12th, 2014 1:01 PM

Archives:

My Favorite Blogs:

Sites That Link to This Blog:


Great Florida Lending, Inc

¡No Solo Soy Especialista en Hipotecas Revertidas, Tambien Soy Un Cliente!!!

2828 Coral Way, Ste. 470
Miami, FL 33145