Reverse Mortgages & Foreclosure Prevention

There’s an interesting discussion of foreclosures at San Diego Predatory Lending.Com. Usually you don’t associate foreclosures with reverse mortgages, but we are each part of our community and what happens to the neighbors impacts us all.

In any case, the blog has an informed and insightful discussion of foreclosure options, options which raise two ideas.

First, some of the information is California specific — foreclosure periods vary enormously by state. If you are facing foreclosure get an attorney in your jurisdiction as soon as possible to determine specific options.

Second, why not have a reverse mortgage as a foreclosure alternative? If someone has a toxic loan, they are age 62 and above and the property will appraise appropriately, then why not dump the loan you have now and get a reverse loan? Isn’t that a better choice than losing a home or paying hideously-huge payments each month?

One of the great attractions of a reverse mortgage is that it requires no monthly payment. A lot of folks who are essentially insolvent would be financially upright if they did not have big mortgage payments each month.

Reverse mortgages are not for everyone, but no doubt for some people they are the deal of a lifetime if they can be used to prevent foreclosure and slash monthly costs.

There’s a lot of smart information on the San Diego site, so give it a try.

This entry was posted on Tuesday, August 21st, 2007 at 5:05 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.