Reverse Mortgages

Betty Jung

RE/MAX equity group

503-804-9685

Here’s a to the Niche Report article stating younger homeowners are applying for reverse mortgages.

Portland Real Estate Younger Homeowners Get Reverse Mortgages

March 22, 2012 in Reverse Mortgages by Betty Jung | No comments

I posted the other day that I attended classes for two days to obtain my SRES® designation (certification is pending) to assist seniors and boomers Seniors Real Estate Specialist). A large portion of the second day was focused on reverse mortgages and a lender came in to speak to us.

Portland Real Estate Younger Homeowners Get Reverse Mortgages

As a SRES® (certification pending), not only am I knowledgeable about reverse mortgages but I have also never stated on this blog that two years ago I too placed a reverse mortgage on my own home here in Lake Oswego.

Not only do I have the training with the SRES class and other real estate classes I’ve taken on reverse mortgages, but I have first-hand experience by having my own reverse mortgage.

Not Always On Board With Reverse Mortgages

I’ve written several blog posts about reverse mortgages here on this blog. In one I stated I was against taking a reverse mortgage but like all things, real estate changes. The old 1980s reverse mortgage program is no more, and newer and better programs are now in place. So, yes I know all about reverse mortgages.

However, not only can you use a reverse mortgage on your current home, but you can use a reverse mortgage to buy a future retirement home, as long as it will be your main residence.

Portland Real Estate Younger Homeowners Get Reverse Mortgages

The other day I read an article about reverse mortgages from the Niche Report. It explains, to some degree why I placed a reverse mortgage on my own home.

“A recent report from the MetLife Mature Market Institute indicates that a little over 70 percent of borrowers who are considering refinancing into a reverse mortgage are not so senior after all. They are rather baby boomers who are about to enter retirement age. The majority are considering reverse mortgages to reduce their monthly household debt, and they are confident that their properties will continue to appreciate and gain equity.”

Want More Information?

How Can A SRES® (Seniors Real Estate Specialist) Help You?

Betty Jung

RE/MAX equity group

503-804-9685

How Can A SRES® (Seniors Real Estate Specialist) Help You?

Seniors Forced Into Reverse Mortgages To Stave Off Foreclosure

November 3, 2011 in Reverse Mortgages by Betty Jung | No comments

The other day I read a news story about a review of the banks and their foreclosure process.

Seniors Forced Into Reverse Mortgages To Stave Off Foreclosure

What concerns me is that there have been seniors forced into reverse mortgages to stave off the threat of foreclosure.

There were some seniors already in the midst of a foreclosure but instead were forced into reverse mortgages to maintain a roof over their heads.

Seniors Forced Into Reverse Mortgages

Those lenders received payment in full. There were no loan modifications and no short sales and many of those lenders received double or triple closing costs for being paid off.

I don’t know if those seniors who were forced into reverse mortgages will be included in this review. However, here’s a link to the story with information about the foreclosure review process.

Yesterday on my primary blog, ALL ABOUT…..Portland.Oregon.Real Estate I wrote a blog post with additional information about this review process. Here’s the link to the article.

Did You Receive A Reverse Mortgage To Avoid Foreclosure?

Were you a senior who was forced into a reverse mortgage because of a pending foreclosure? Send me an email to betty(at)bettyjung.com if you were. I’d like to hear from those who took a reverse mortgage to avoid a foreclosure.
ALL ABOUT…..Seniors.Boomers And Small Houses. © Copyright 2008-2012. Betty Jung. All Rights Reserved. Use of this article, photos and images without permission is a violation of federal copyright laws.

Betty Jung

RE/MAX equity group

503-804-9685

How Can A SRES® (Seniors Real Estate Specialist) Help You?

Two Banks Opt Out From Reverse Mortgages

June 19, 2011 in Reverse Mortgages by Betty Jung | No comments

Two Banks Opt Out From Reverse Mortgages

Both Bank of America and Wells Fargo have now stopped making reverse mortgage loans citing that seniors who have or would want to apply for a reverse mortgage also don’t have the capability of paying the property taxes or insurance.

With a reverse mortgage, a lender could not deny the loan no matter what your financial situation was as long as you had equity in your home. My personal opinion is, the reason these two lenders stopped making the loans is due to declining values, and both lenders could potentially see major losses.

Still Reverse Mortgage Lenders Available

There are still other lenders providing reverse mortgages and I wrote the other day that in Canada they are even considering lowering the requirement age for obtaining a reverse mortgage.

It will be interesting to see what happens as Portland prices continue their decline as to which lenders will continue to loan on reverse mortgages.

Need More Information About Reverse Mortgages?

I will keep you posted if I read or hear anything else. Have a question regarding a reverse mortgage? Give me a call at 503-804-9685.

Betty Jung

RE/MAX equity group

503-804-9685

How Can A SRES® (Seniors Real Estate Specialist) Help You?

Lenders Consider Lowering Requirement Age For Reverse Mortgages

June 15, 2011 in Reverse Mortgages by Betty Jung | No comments

With homeowners cash-strapped, boomers and seniors in debt, and not enough money to see them into their retirement years, lenders are being encouraged to reduce the minimum age requirement for reverse mortgages from 62 years of age to 55.

Lenders Consider Lowering Requirement Age For Reverse Mortgages

I saw a recent article that stated boomers who have most of their retirement savings in their home’s equity, might consider using a reverse mortgage to pay off bills, extend their retirement living, etc. A reverse mortgage does need to be repaid with interest either when the borrower moves out, upon death or by the owners’ heirs.

Canada Lowers Age Requirement For Reverse Mortgages

HomeEquity Bank in Canada, the only national reverse mortgage provider in that country, recently lowered the minimum age requirement for its CHIP Home Income Plan from 60 to 55 due to high demand as a growing number of older Canadians prepare to exit the workforce and look for ways to supplement their pensions.

Reverse mortgages are not for everyone and I have written about them on my primary blog ALL ABOUT…..Portland.Oregon.Real Estate. If you need assistance or information on reverse mortgages, I have taken the necessary counseling class and have assisted others with what is involved with a reverse mortgage.

Need more information?

Call me at 503-804-9685 and I’d be happy to assist you on how to obtain a reverse mortgage.

Betty Jung

RE/MAX equity group

503-804-9685

How Can A SRES® (Seniors Real Estate Specialist) Help You?

Portland Real Estate Boomers Should Have Their Mortgages Paid

May 6, 2011 in Reverse Mortgages by Betty Jung | No comments

I am active on Facebook at ALL ABOUT…..Portland.Oregon.Real Estate blog. As part of the FB community, I belong to some private groups. One group has Portland real estate agents, attorneys, etc. discussing foreclosures and short sales.

Portland Real Estate Boomers Should Have Their Mortgages Paid

In that group, I made the comment that baby boomers and seniors have been forced to take reverse mortgages during this financial crisis to save their homes. Further, their houses have lost value and they have lost much of their equity. Some lost their jobs and can’t find another. Some have taken ill and can’t afford their monthly house payments. Some have had to use retirement funds to live on, which have also declined in value. Some had other situations befall them and now they are unable to make payments.

My comment sparked another agent so say that all seniors and baby boomers should have their homes paid off. She indicated that the boomers most likely made bad choices, bad financial decisions, over the past 30 years. Not always was a bad decision made to prevent someone from paying off their house. Sometimes life just gets in the way. There are many situations that can derail plans.

Baby Boomers And Reverse Mortgages

The other day I read a post saying most baby boomers still have mortgages. Written, however about Canadian homebuyers, it says that only 44% of homeowners there have their mortgages paid off. My guess would be the same percentage might apply here in the U.S.

Do you have your mortgage paid in full?

Need to know more about a reverse mortgage? I can help. Email me at bettyjung.rebroker (at) gmail.com and I would be happy to get you that information.

Betty Jung

RE/MAX equity group

503-804-9685

How Can A SRES® (Seniors Real Estate Specialist) Help You?

Portland Real Estate Declining Values Hurt Baby Boomers

January 29, 2011 in Reverse Mortgages by Betty Jung | No comments

One of my “hot” topics blog has been smaller houses, etc. I’ve been on that soap-box for a long time hoping that builders would listen to the largest segment of home buyers – the baby boomers. January 1, 2010 was the start of many baby boomers facing retirement age.

Portland Real Estate Declining Values Hurt Baby Boomers

There are many posts I’ve written about boomers wanting those smaller houses and now the media and everyone else is writing about that too. In past posts, I’ve quoted the Met Life report. They do a study every year on the 55+ segment of the economy. Boomers want to live closer to family, are continuing to work and want smaller houses.

A growing trend over the past several years had been seniors using a reverse mortgage to assist them in this financial crisis by tapping into their equity. Over the course of 10 short years baby boomers have seen their retirement savings hit by everything from the dot-com bust, market crashes to rising insurance costs and property tax increases. Sandwiched between college loans and paying for their parents medical needs to pay cuts, lay offs and now the housing market melt down. Seniors have needed that extra income or portion of their equity to survive.

Reverse Mortgages And Declining Portland Real Estate Values

A reverse mortgage:

Uses a portion of the home’s equity as collateral.

The loan does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away.

At that time, the estate has approximately 12 months to repay the balance or sell the home to pay off the balance.

All remaining equity is inherited by the estate.

The estate is not personally liable if the home sells for less than the balance of the reverse mortgage.

There are no prepayment restrictions or penalties for paying off a reverse mortgage early, like any FHA mortgage it can be paid off at anytime.

A reverse mortgage cannot be outlived. As long as at least one homeowner lives in the home as their primary residence and maintains the home in accordance with FHA requirements (keeping taxes and insurance current) the loan does not become due.

In this financial crisis, you would think that more and more seniors, in fact, would be utilizing a reverse mortgage. Due to the decline in home prices and uncertainty in the mortgage market, reverse mortgages dropped significantly in 2010. Recently, however, FHA has stepped in to provide new guidance for seniors facing a foreclosure and recommending a reverse mortgage and credit counseling for seniors.

Data released from the Department of Housing and Urban Development shows that during the fiscal year of 2010 which ended September 30, 79,096 reverse mortgages were endorsed during 2010, down 31.1% from same period in 2009. Even though the aging baby boomer population presents a need and ability to use reverse mortgages, our housing market will need to see prices stabilize further and possibly increase before more baby boomers can utilize a reverse mortgage to help sustain them during these hard economic times.

Thinking of selling your large home and want to know what it’s worth in today’s Portland real estate market?

Call me at 503-804-9685 and I can give you the answers.

Betty Jung

RE/MAX equity group

503-804-9685