Reverse Mortgages, AARP Reverse Mortgage Information, Reverse Mortgage Loans

AARP - Inside E Street - Discusses Reverse Mortgage

10/27/2009

posted by N. Sioris

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"AARP - Inside E Street," is a half hour talk show featured on Retirement Living TV, the only network dedicated to adults 50 and older. The weekly program delves into issues that impact health, financial security and retirement. Each week, "AARP - Inside E Street" host, Sheilah Kast, investigates important issues before congress and state legislatures and discusses hot political topics of the day that affect retirees and senior citizens.

This week's show topic is reverse mortgage. The segment includes interviews with Judy Biggert, Illinois Representative and Massachusetts Representative, Barney Frank both of whom say a reverse mortgage as a positive financial tool for many seniors, particularly in today's economic environment.

You can watch the entire show below.

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Seniors Could Get Another $250.00 Stimulus Check

10/16/2009

posted by N. Sioris

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If the Obama administration gets its' way, 57 million seniors could be getting another $250.00 check from the government. If approved, the proposal calls for a one-time lump sum payment scheduled for sometime next year.

The justification for the $250.00 check for seniors is due to the fact that there will be no cost of living raise for Social Security recipients next year because there was no increase in inflation. This will be the first time since 1975 that Social Security benefits have not increased. This is a stark contrast from last year's increase, which was one of the highest on record at 5.8 percent.

$250.00 per recipient is equivalent to approximately 2 percent of the annual benefit for the average Social Security retiree. The proposed payments will also be paid to Supplemental Security Income recipients, Veterans, railroad retirees and government retirees.

The administration is not calling this proposed payment another "stimulus" package but instead they refer to it as an "economic recovery payment." According to Richard Fiesta, director of government and political affairs at the Alliance for Retired Americans in Washington, "The extra $250.00 is sort of in lieu of COLA, (cost of living adjustment) and we hope it will be enacted soon."

Economists say that a second round of $250.00 checks to folks that are primarily on fixed incomes will give a temporary boost to the economy, while other analysts worry that sluggish consumer spending could derail the economic recovery.

It remains to be seen how quickly, or if at all, the $250.00 proposal will be enacted. Partisan wrangling in Congress continues as usual, with even relatively uncontroversial bills such as extending jobless benefits for three more months, being held hostage by never ending bickering over ideology.

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HECM Reverse Mortgages Suffer Big Blow From HUD

9/23/2009

posted by N. Sioris

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HECM (Home Equity Conversion Mortgage) reverse mortgages have suffered a big blow by Congress and HUD this week. HECM loan limits will be slashed by 10%, effective October 1, 2009.

In the face of declining home values nationwide, decimated stock market portfolios, and the weakest economy since the Great Depression, HUD announced that they are cutting loan limits on all HECM reverse mortgages by 10%. The announcement was made September 23, 2009 in their mortgagee letter 2009-34.

This is highly disappointing news for senior homeowners that are barely eligible to qualify for HECM reverse mortgages, due to property values versus outstanding mortgage debt. If you happen to be one of those people that is boarder line on having sufficient equity in your home to qualify, it's quite possible that after October 1st, you will no longer be eligible for a HECM loan, unless you have the ability to contribute some of your own money to the closing.


Leaves Us Scratching Our Heads

It's puzzling to many of us, how Congress and HUD could embrace a 10% reduction in lending limits to senior citizens during such a vulnerable economic time. There is abundant evidence that many closed HECM reverse mortgages have rescued countless seniors from foreclosure and saved their homes through the use of HECM reverse mortgages.

This move, will no doubt be devastating for many senior homeowners that were in the process of considering a reverse mortgage loan, but simply had not made the commitment to act on it in time.

Combine the 10% reduction in lending limit with the expiration of the temporary HECM maximum loan amount of $625,500. reverting back to $417,000. at the end of this year, and once again, we are witnessing a perfect storm in the making.

If you need more information about how this effects your eligibility, please feel free to contact us today.

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