According to a new report issued by the Department of Housing and Urban Development (HUD), the latest reverse mortgage updates on the rules and laws have benefited both borrowers and lenders. New changes to the Home Equity Conversion Mortgage program are intended to: assure that foreclosures and defaults are limited; they are also designed to prevent lender abuse; they help assure that borrowers can actually afford to upkeep the home (i.e. – home insurance and property taxes on these loans that are not secured on the basis of income or credit).
The changes mandate that borrowers demonstrate they have the financial ability to maintain the home and pay the property taxes and home insurance. If the borrower is not able to provide proof of this, lenders are not allowed to approve the loans.
The draw from the loans by borrowers has decreased since the new rules took effect. This lesser draw means a decrease in risk to both lenders and borrowers, and assures (that in most cases) there is something to be passed on to heirs from the estate in the future.
Reverse mortgages are a special type of home loan that is offered to homeowners age 62 and older. They require that you have substantial equity in your home and that you are able to pay annual property taxes, home insurance and general upkeep. There are no income or credit requirements outside of these rules. Other requirements include that the home remains your primary residence and that you seek third-party credit counseling before you take out the loan.
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Choosing the right attorney can make the difference between whether or not you can keep your home. A well-qualified Miami foreclosure defense attorney will not only help you keep your home, but they will be able to negotiate a loan that has payments you can afford. Miami foreclosure defense attorney Timothy Kingcade has helped many facing foreclosure alleviate their stress by letting them stay in their homes for at least another year, allowing them to re-organize their lives. If you have any questions on the topic of foreclosure please feel free to contact me at (305) 285-9100. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.
