||January 24th, 2008|
Reverse Mortgages . . .
with Laura Strickler
Laura Strickler -
Your Reverse Mortgage Specialist
Reverse Mortgages... With Laura Strickler
If you have been reading The Paper over the last few years, you know that I specialize in reverse mortgages. Reverse mortgages are FHA loans. Because I work with FHA loans, I am also able to offer the new FHA program which was designed to help with the rising foreclosure crisis. I have been asked by many of my senior clients for more information on this program. Many of my clients' children are facing their own financial crisis due to their own loans converting to the adjusted rate.
With that in mind, I would like to give you some information on this new program offered by FHA called the FHASecure program. First of all, it was designed by HUD for the following reasons:
• There has been a substantial increase in the number of conventional borrowers refinancing into FHA products.
• To provide stability in the real estate market.
• To break today's cycle of foreclosures
• To provide an opportunity for affected homeowners to keep their homeownership dreams alive.
This product is estimated to help approximately 240,000 families avoid foreclosure. The number of these refinance transactions has tripled since the start of 2006. With FHASecure, these FHA refinance transactions are projected to surpass 100,000 loans by the end of the fiscal year. To date, these figures do not include refinances for delinquent borrowers.
Who qualifies? Borrowers must have:
• A non-FHA insured ARM that has reset.
• No fixed interest only or fixed pay option loans.
• Please note, this is not a sub-prime bail out.
• A history of on-time mortgage payments up to 6 months before the loan reset.
• The loan application must be signed no later than December 31, 2008, as this is a temporary initiative.
• A sustained history of employment.
• Sufficient income to make the new mortgage payment.
• No cash out will be allowed.
The FHASecure mortgage amount can include the existing first lien and any purchase money second mortgage, closing costs and arrearages (principal, interest, taxes and insurance) provided that they arose after the reset. If the new FHASecure loan amount is not enough to pay off the existing first lien, closing costs and arrearages, then the original lender may execute a second lien at closing to pay the difference.
The FHASecure program will lower monthly mortgage payments, reduce defaults and prevent foreclosures and will allow subordinate financing. These benefits will prevent many families from losing their homes. If you know someone who is struggling with this issue, have them call me with their questions.
The reality is that many people need help and don't know who to ask. I'm here to help. If you've followed this column, you know that I tell you what I know. I believe in helping people…young and old. I've helped many seniors enjoy their lives by freeing up their largest asset. Now I can also help others stay in their home…at least so they don't lose what they've already invested.
To the readers of The Paper, I will reduce the origination fee by the cost of your appraisal when your loan funds. I appreciate your questions and comments, keep them coming. As always, give me a call when you have a question. And remember, if you need someone to speak to your group, I am available to help you with that as well.
Laura Strickler, CSA
Certified Senior Advisor
Reverse Mortgage Specialist