More homeowners with prime mortgage loans defaulted in the third quarter, according to statistics from the Office of Thrift Supervision and the Office of the Comptroller of the Currency. The increase came even as some economists have said home prices may be showing signs of stabilizing.

Troubled Mortgages

Mortgages that were 60 or more days past due or belonged to borrowers who filed for bankruptcy increased 16.7% over the second quarter and rose 73.8% compared with a year earlier. If you are worried about defaulting on a mortgage and are considering a reverse home mortgage, here are some things to consider.

• A reverse mortgage could allow you to keep your home and avoid foreclosure. The amount of a reverse loan is based upon current mortgage rates, your age, and the value of your home. The higher your property appraisal, the more money you may be able to borrow.
• Consider getting a reverse mortgage to downsize to a less expensive home.
• If home sales are recovering in your area, consider selling your home to get out from under a mortgage you can’t afford. A knowledgeable real estate agent can help determine what’s happening in your local real estate market.
• Be skeptical of people who approach you and claim they can help save your home. Reverse mortgage scams have proliferated as more homeowners have become desperate to avoid foreclosure.
• Get help from a qualified housing counselor. The Department of Housing and Urban Development has a list of counselors ready to discuss your options for getting a reverse mortgage, modifying a loan, refinancing, and other forms of assistance.

Reverse Mortgage Has Pros and Cons

A reverse loan may or may not be the solution to your financial problems. Contact your mortgage lender or loan servicer to see how they can help in addition to investigating reverse mortgage guidelines.

This entry was posted on Wednesday, December 23rd, 2009 at 8:58 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.