An alarming trend is emerging when it comes to foreclosures among the senior population. A number of them have been the victims of reverse mortgage schemes resulting in their homes being foreclosed on. Consumers 62 years of age and older face a unique set of financial difficulties- one of their main concerns is servicing issues with reverse mortgages, according to the Monthly Complaint Report released by the Consumer Financial Protection Bureau (CFPB).
Reverse mortgages allow the homeowner to borrow against the value of their home, receiving money through a lump sum, a fixed monthly credit or line of credit. However, a reverse mortgage does not require the individual to make any loan payments. Instead, the entire balance becomes due when the borrower either dies, moves away permanently or sells the home.
The problem with reverse mortgages is they can be quite expensive and complex if you need to get out of one. Additionally, many lenders put themselves out there as reputable reverse mortgage service providers while offering what are essentially scams to homeowners.
For the most part, the reverse mortgages that elderly homeowners are struggling with come from more than a decade ago when the recession first hit. All it takes is for the homeowner to miss one simple deadline or to fall behind on homeowner’s insurance payments or taxes before the lender moves into foreclose on the home.
Elderly homeowners who are at or below the poverty line and are living in urban areas, have been hit the hardest. USA Today recently published a story regarding reverse mortgages and the effects they have had on the aging population. Their study showed a notable disparity and a trend that subprime lenders tend to target certain areas where the loans are almost always doomed to fail, including fixed incomes and lower income areas.
Miami is one of the cities that has been hit the hardest. Not only does the Miami metropolitan area have pockets of neighborhoods where the population falls below the poverty guideline, it is also an area where many seniors come to retire.
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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 McMaken website at www.miamibankruptcy.com.
Related Resource: https://www.investopedia.com/mortgage/reverse-mortgage/