If you are a senior who currently has a sub-prime loan, please take notice. The current rates on reverse mortgages are around 3%! You really need to have someone provide you with information on how to convert your current mortgage to a reverse mortgage. I cannot speak loudly enough on how much you will save over the long run.
The sub-prime loan problem has hit all of America. A low initial rate followed by outrageous interest rates has been the biggest bait and switch in history. It has hit every age group, young and old.
In hard times turn to your family. Its good advice. Let me give you some advice on how to work within the family to achieve long-term stability.
1) If the borrower is over 62, and there is still equity in the home, do a reverse mortgage immediately.
2) If the borrow is under 62, and there is still equity in the home, and you have a mother, father, or trusted relative over 62 living with you, deed the home to that relative so that they can do a reverse mortgage and you won't lose the home.
3) If the borrower is under 62, and there is still equity in the home, and you have a mother, father, or trusted relative over 62 that currently, or can in the future, live with you for 3 months out of the year, deed the home to that relative. Even if they have a reverse mortgage on their primary home, they can, under those circumstances, do a secondary home under a reverse mortgage. (Please note that the interest rate on a secondary loan is higher, but it does stop the monthly mortgage payments, and you can start paying down the principal of the reverse mortgage with any money you can afford to put towards that purpose.)
The key point I am trying to make is that individuals over the age of 62 can get out of the incredibly high mortgage payments that are being forced on homeowners who signed up for a sub-prime loan with a "teaser" rate. I am also trying to re-enforce the fact that in hard times like these, senior citizens have the entitlement of the reverse mortgage. If you are not a senior citizen over the age of 62, then contact one that you trust to help you get out of your sub-prime loan. Deeding the home to them, having them live with you, and willing the home back to you after they pass, is one of the best ways to save your house from foreclosure.
Bob bob@az62.com
www.az62.com
623-214-6663
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