Juhani Tontti offers the following royalty-free article for you to publish online or in print. Feel free to use this article in your newsletter, website, ezine, blog, or forum. ----------- PUBLICATION GUIDELINES - You have permission to publish this article for free providing the "About the Author" box is included in its entirety. - Do not post/reprint this article in any site or publication that contains hate, violence, porn, warez, or supports illegal activity. - Do not use this article in violation of the US CAN-SPAM Act. If sent by email, this article must be delivered to opt-in subscribers only. - If you publish this article in a format that supports linking, please ensure that all URLs and email addresses are active links. - Please send a copy of the publication, or an email indicating the URL to [email protected] - Article Marketer (www.ArticleMarketer.com) has distributed this article on behalf of the author. Article Marketer does not own this article, please respect the author's copyright and publication guidelines. If you do not agree to these terms, please do not use this article. ----------- Article Title: How Do Reverse Mortgages Work In Avoiding Home Foreclosure Author: Juhani Tontti Category: Loans, Mortgage, Mortgage Word Count: 495 Keywords: reverse mortgages,HECM,about reverse mortgage,what is a reverse mortgage Author's Email Address: [email protected] Article Source: http://www.articlemarketer.com ------------------ ARTICLE START ------------------
When a normal mortgage must be paid back in monthly instalments, the lender of the reverse mortgages pay you every month or with the schedule, you have decided. That is how do reverse mortgages work. The reverse mortgage loan will be paid back, when you move away or die, so will all the costs included. The reverse mortgages are not for youngsters, the minimum age is 62 to qualify reverse mortgage. However, the older you are and the more valuable your home is, the more you can borrow. Many have used reverse mortgages to save themselves from the subprime loan trap. When you think, how the home prices develop, you get one benefit to get a reverse mortgage loan. When you have taken this loan, you will still be the owner of your home. This means that despite of the fact, that you eat the value of your home every month, also the value increases all the time. This compensates the costs with some amount. Concerning the payment options of the reverse mortgages, there is one good feature. A borrower can select, how he will take the money. As a lump sum, as monthly payments, as a credit line or as a combination of all these. So, if he has a situation, where the mortgage lender insists a big capital back payment, a reverse mortgage loan borrower can pick an option of the lump sum plus monthly payments, so that he can respond the needs of the lender and to pay the monthly payments. Or he can pay the whole loan away with his new reverse mortgage loan. This will release him also from the monthly payments. In the case, when the mortgage terms have been illegal already, when the loan was taken, the first step is to start a lawsuit against the lending company and try to save the home of the senior in that way. Traditionally the reverse mortgages work best, when a senior needs a lump sum plus some monthly payments to pay his grown medical bills, for instance. The older the homeowner is and the more valuable the home is, the more he will get. There Are Some Points To Think. You should always think, that the reverse mortgage is only one solution. Some seniors say, that a reverse mortgage loan is expensive, because the reverse mortgage closing costs plus other fees are based on the full value of the home, up to a national program limit of $625,500. You cannot deduct the accrued interest payments until the loan is fully repaid, normally at some point in the future. The reverse mortgage loan grows over time and that means that heirs do not necessarily get anything after all the costs and the capital have been paid. Every single borrower, who take a federally insured HECM reverse mortgage loan, must go through a counseling from one of the government or nonprofit housing counseling agencies approved by the HUD. This is very useful for a senior facing foreclosure. Juhani Tontti, B.Sc., Marketing. A HECM Is One Solution To Avoid Home Foreclosure. Get More Tips About Reverse Mortgages For That Purpose, Visit:http://www.ReverseMortgageEarnings.com ------------------ ARTICLE END ------------------ [Non-text portions of this message have been removed]
