A senior citizen homeowner owned a home and got behind in their mortgage payments. Subsequently, a notice of default was issued by the lender and foreclosure proceedings were started. The homeowner had been living in his home over 25 years and have paid down considerably his mortgage but with retirement and a sudden increase in medical expenses he was not able to pay his mortgage.
Here were the challenges:
- Senior was in foreclosure on his current home.
- He wanted a home in a better area.
- Senior had limited equity to re-buy after the distressed home was sold.
- Bad FICO scores, bad mortgage history & limited retirement income
- Current home had deferred maintenance.
Even though the foreclosure strained his credit and purchasing power, he was able to sell his home to avoid foreclosure and walk away with the equity he had acquired all those years. Then then turned around and used half that equity as a down payment on his new home. He financed his home using a reverse mortgage on the new home thus avoiding making any monthly mortgage payments on his home. He put the other half of his equity in savings and investment accounts. He lives much more comfortable with the piece of mind that he will never need to worry about losing his home and has the extra monies for his retirement.
This was the outcome:
- Senior was bailed out of foreclosure
- Upgraded his home in a nicer area
- Doubled his purchase power
- Eliminated his monthly mortgage payments
- Senior can enjoy a worry free retirement
Many do not know that a person over the age of 62 can purchase a home using a reverse mortgage. Using a reverse mortgage for purchase works the same way one would use to buy a home with a traditional mortgage. It’s quite simple.
We specialize in helping seniors with HECM for purchase and we guide our clients to obtain a reverse mortgage and help them find a home that will fit their needs and lifestyles. If you would like more information or have questions about this program, please call me, Diego Loyaand I will be more than happy to assist you.