The possibility of foreclosure can be scary and stressful. But if you experience a job loss or have a limited income, foreclosure may be a very real possibility. Recent statistics say there is a foreclosure filing every 13 seconds, according to Reuters. Here’s what you need to know about whether a reverse mortgage can help you avoid foreclosure.

U.S. Foreclosure Filings

So far this year there have been about two million foreclosure filings, according to the Center for Responsible Lending. This isn’t a sub-prime problem–many of the homeowners losing their homes have prime mortgages. Homeowners over 62 who face a possible foreclosure could find some relief with a reverse mortgage, which allows you to convert home equity to cash and requires no payments from you.

Reverse Mortgage Counseling

Deciding to tap home equity is not a decision that should be taken lightly. But using a reverse home loan could allow you to find a new source of income to pay for medical bills, home repairs, and other expenses. Schedule a reverse mortgage counseling session to learn more about these loans and whether or not one can help you. Reverse mortgages aren’t for everyone and should be considered on an individual basis. Just because you know someone who got a reverse home loan doesn’t mean you necessarily should.

Older Borrowers Get More Money

If you are still in the workforce and not yet 70, a reverse mortgage could be premature. That’s because the older you are and the more your home is worth, the more money you qualify to receive with a reverse mortgage. Get reverse mortgage quotes from reputable lenders to find out how much you might be able to borrow. But if you can get by on your income, or redo your household budget to make your money go further, that may be a better option than tapping your home equity at this time.

This entry was posted on Saturday, October 10th, 2009 at 3:27 pm and is filed under Reverse Mortgage . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.