Oregon Reverse Mortgage Info » FHA HECM Purchase

How Oregon Financial Planners View Reverse Mortgages

Laurie Willis — Thu, 25 Mar 2010 21:58:48 +0000

When researching what our Oregon Seniors can expect with retirement, I found out that a record low of only 13% of responding seniors (in an Employee Benefit Research Institute survey) said they are very confident that they have enough money to live comfortably in retirement. Because retirement assets may continue to dissipate and entitlement programs may dwindle, many financial analysts view reverse mortgages as one tool to buoy finances.

When baby boomers are in their 70’s they may have to look to their houses for needed income support. Statistically speaking, at that time pensions may be gone and people will have to create their own income stream. It’s important to make sure you don’t outlive your assets; it’s not about stock market returns, but about how you are going to get a paycheck for the rest of your life.

For those better off baby boomers, reverse mortgages can be viewed more as a financial safety net, but, with time, experts believe the product’s popularity will continue to rise. For many of our senior citizens in financial difficulty, an Oregon Reverse Mortgage may be the only way out.

In the next 10 or 15 years Oregon Reverse Mortgages will be as common as the standard forward mortgages. Two of the biggest assets for retirees are homes and retirement accounts and once the retirement account is spent, an Oregon senior is only left with the home. Many seniors will have to access this equity to continue their income stream and possibly could not qualify if trying for a forward mortgage due to income or credit. Neither of these are a problem with an Oregon Reverse Mortgage.

In deciding whether to advise an Oregon Senior on a reverse mortgage, it’s critical to know their desire to stay in their home, whether they are in danger of depleting his/her assets, or might be facing a catastrophic event. That is why all of our Oregon Reverse Mortgage applications are one-on-one with our clients so that we can determine how best to help them.

If you have questions about a Reverse Mortgage we will not pressure you to take one out, but it may be in your best interest to check out one now, rather than later. Please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?

Oregon FHA Reverse Mortgages are not immune to FRAUD

Fred Chamberlin — Tue, 23 Mar 2010 20:08:54 +0000

Oregon Senior Citizens are often a target of unscrupulous people trying to take advantage of them and the Oregon Reverse Mortgage program offers another way to do that. If you check out this previous post, you will see some of the ways Senior Citizens are attacked to take their equity away from them with a Reverse Mortgage.

However, there is help on their side. FHA has establish a HECM (Home Equity Conversion Mortgage – official name of reverse mortgage) Fraud Unit and they are always looking for ways to combat fraud that is targeting our Senior Citizens. In a recent issue of “The REVERSE Review“.” Michael Banner interviewed Inspector General Kenneth Donohue of the HECM Fraud Unit.

From his questions and the answers from Donohue, it appears that Senior Citizens are participating in some of the Fraud schemes, either knowingly or unknowingly. His article also pointed out that this is a serious problem and will meet with serious efforts on the different government agencies working together. Take a look at the article for more information.

If you have questions about an Oregon Reverse Mortgage and would like to discuss your questions or concerns, please contact Fred or Laurie at 541-342-7576 or make an appointment to come to our office, Alpine Mortgage Planning, 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. We are here to help you and would be happy to ease your mind if you think you are being taken advantage of in the process.

Oregon FHA Reverse Mortgages Could Change Shortly

Laurie Willis — Mon, 15 Mar 2010 22:53:11 +0000

FHA Says:

BIG PRINCIPAL LIMIT REDUCTION NEEDED

WITHOUT $250 MILLION HECM SUBSIDY

David H. Stevens, Assistant Secretary of Housing for the Federal Housing Administration (FHA) recently testified to the House Financial Services Subcommittee on Housing and Community Opportunity. He voiced his strong support of the administration’s reverse mortgage program. What happens there can have some major consequences to those Seniors contemplating an Oregon Reverse Mortgage in the future.

The need for this type of program is greater now than it’s ever been, due to increasing medical costs, declining employment/incomes, and less ‘savings’ in various types of pension funds/retirements accounts.

This comes as the Office of Management and Budget (OMB) requested an appropriation of $250 million to support the Home Equity Conversion Mortgage (HECM) in its FY2011 budget.

Stevens, referencing a survey conducted by AARP in 2006 told the committee the product has provided seniors with much-needed financial relief and was primarily used to pay for long term health care, enable home repairs and provide peace of mind that housing expenses now and in the future could be met.

In addition, Stevens said the program plays an important role in allowing seniors to age in place. “Keeping seniors in their homes and communities, close to familiar support networks, puts less pressure on our nation’s overextended nursing home infrastructure and the public resources that support it,” says Stevens.

According to his testimony, FHA’s analysis showed that to maintain the viability of the program for FY2011, an increase if the annual mortgage insurance premium from 0.05% to 1.25% and further reducing the principal limit factors (PLF’s) of approximately one to five percent, depending on the age of the borrower is necessary.

“Without the budget request, we would be forced to reduce the PLFs by an additional 21% in FY2011. This would significantly reduce the amount of funds that would be available to seniors (more than 30%), which, on average is a $23,000 to $27,000 impact,” said Stevens.

He closed by saying, “Any additional steep cut to the PLFs will result in serious decline in program level as HECMs would no longer be viable to many seniors who need to access their home equity while staying in their homes.”

What does this mean for you, if you are an Oregon Senior that has been contemplating a reverse mortgage?

NOW, rather than later might be the best opportunity to take advantage of all the benefits of a Reverse Mortgage. HUD has already cut the PLFs by 10% in September of 2009. A recent informal survey conducted by NRMLA showed that the 10% cut resulted in 20% fewer seniors qualifying for a Reverse Mortgage.

Top Five Uses for Oregon Reverse Mortgage

Fred Chamberlin — Thu, 04 Mar 2010 20:21:55 +0000

Why does a Senior Citizen take out an FHA HECM Reverse Mortgage in Oregon? According to a 4 year old survey by AARP, the top five reasons are:

Cover expenses for health or disability
Improve quality of life
Pay off debt
Home repairs and improvements
Everyday and emergency expenses

I believe in today’s economy, we can also take note of the fact that an Oregon Reverse Mortgage has no income or credit requirements like a conventional or standard loan and therefore is often easier to qualify for. Foreclosure prevention is also high on the list of uses for an Oregon Reverse Mortgage.

If you have questions about a Reverse Mortgage and you are looking at these top five reasons, please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?

What is an Oregon Reverse Mortgage?

Fred Chamberlin — Fri, 26 Feb 2010 20:35:53 +0000

Not everyone know exactly what an Oregon Reverse Mortgage is. This is FHA’s way of helping Senior Citizens use the equity in their home to make their golden years more golden. It allows Seniors to get a reverse loan and tap their equity now. Check out these FAQ (frequently asked questions) from FHA.

What is an Oregon reverse mortgage?

An Oregon reverse mortgage is a special type of home loan that lets you (senior homeowner) convert a portion of the equity in your home into cash. The equity that built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. FHA’s Home Equity Conversion Mortgage (HECM) provides these benefits. You can also use a HECM to purchase a primary residence if you are able to use cash on hand to pay the difference between the HECM proceeds and the sales price plus closing costs for the property you are purchasing.

Can I qualify for FHA’s HECM reverse mortgage?

To be eligible for a FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, and you must live in the home. You are further required to receive consumer information from an approved HECM counselor prior to obtaining the loan. You can contact the Housing Counseling Clearinghouse on (800) 569-4287 for the name and telephone number of a HUD-approved counseling agency and a list of FHA-approved lenders within your area.

Can I apply if I didn’t buy my present house

with FHA mortgage insurance?

Yes. It doesn’t matter if you didn’t buy it with an FHA-insured mortgage. Your new FHA HECM will be FHA-insured.

What types of Oregon homes are eligible?

To be eligible for the FHA HECM, your home must be a single family home or a 1-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.

What’s the difference between a reverse mortgage

and a bank home equity loan?

With a traditional second mortgage, or a home equity line of credit, you must have sufficient income versus debt ratio to qualify for the loan, and you are required to make monthly mortgage payments. The reverse mortgage is different in that it pays you, and is available regardless of your current income. The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow.

You don’t make payments, because the loan is not due as long as the house is your principal residence. Like all homeowners, you still are required to pay your real estate taxes, insurance and other conventional payments like utilities. With an FHA HECM you cannot be foreclosed or forced to vacate your house because you “missed your mortgage payment.”

Can the lender take my home away if

I outlive the reverse loan?

No. You do not need to repay the loan as long as you or one of the borrowers continues to live in the house and keeps the taxes and insurance current. You can never owe more than the value of your home at the time you or your heirs sell the home.

Will I still have an estate that

I can leave to my heirs?

When you sell your home, you or your estate will repay the cash you received from the reverse mortgage plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs.

How much money can I get from my home?

The amount you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA’s mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. You can use an online calculator like the one on the AARP website to get an idea of what you may be able to borrow.

Should I use an estate planning service

to find an Oregon reverse mortgage?

FHA does NOT recommend using any service that charges a fee for referring a borrower to an FHA lender. FHA provides this information free, and HUD-approved housing counseling agencies are available for free or at very low cost, to provide information, counseling, and a free referral to a list of FHA-approved lenders. Search online or call (800) 569-4287 toll-free, for the name and location of a HUD-approved housing counseling agency near you.

How do I receive my payments?

You have five options:

Tenure – equal monthly payments as long as at least one borrower lives and continues to occupy the property as a principal residence.
Term – equal monthly payments for a fixed period of months selected.
Line of Credit – unscheduled payments or installments, at times and in amounts of your choosing until the line of credit is exhausted.
Modified Tenure – combination of line of credit with monthly payments for as long as you remain in the home.
Modified Term – combination of line of credit plus monthly payments for a fixed period of months selected by the borrower.

If you have questions about a Reverse Mortgage, please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?

Oregon Reverse Mortgage and Retirement

Fred Chamberlin — Wed, 24 Feb 2010 23:04:58 +0000

I know of many of my contemporaries (yes, I am over 62) that had great plans to retire when they were 60 but now are not able to because their huge 401k nest egg got boiled, poached and fried. That is where an Oregon Reverse Mortgage can be the savior. Many Senior Citizens either own their home outright or owe a lot less than the value of it and could qualify for an Oregon Reverse Mortgage to ease their daily financial burden.

Is an Oregon Reverse Mortgage right for everyone that is over 62, absolutely not, but why not check it out and see if it is right for you? Do you own your home? Do you owe less than it is worth? Do you like the idea of not making house payments? Could you use some extra cash? Would you like to help your kids or grandkids out now, instead of after you are gone?

An Oregon Reverse Mortgage may be the ideal way for you if you answered yes to any of the questions above. There is no harm in checking on a Reverse Mortgage. We aren’t going to twist your arm and make you take one out. We are here to help you make the decision that is right for you. How do you know that a Reverse Mortgage is not right for you if you don’t get all of the facts?

Feds warn of reverse mortgage scams

Fred Chamberlin — Tue, 23 Feb 2010 18:57:57 +0000

by Laurie Willis

When given the opportunity, criminals will target those they perceive as the easiest mark and the weakest among us. As we cope with the bursting of the real estate and economic bubbles, that is even more apparent as we see more and more instances of fraud against senior citizens. Oregon Reverse Mortgage Info is determined to highlight and expose some of the schemes being perpetuated against Oregon’s elder citizens.

The Salt Lake City office of the Federal Bureau of Investigation and the Utah Division of Real Estate have compiled a list of the potential top five mortgage related rip-offs in 2010. Chief among them: a reverse mortgage scam targeting the elderly.

Scam artists are always looking for new ways to reinvent the same crime,” said Michelle Pickens, special agent and mortgage fraud coordinator with the FBI. “The reverse mortgage scam is based off the ’straw buyer’ model where they use senior citizens … against their own mortgages.”

Unscrupulous loan officers, mortgage companies, investors, loan counselors, appraisers, builders, developers and real estate agents are exploiting Home Equity Conversion Mortgages (HECM)-also known as reverse mortgages-to defraud senior citizens. They recruit seniors through local churches, investment seminars, television, radio, billboard and mailer advertisements, to commit the fraud primarily through equity theft, foreclosure rescue, and investments schemes.

Equity theft schemes are the most common method used by mortgage fraud perpetrators to exploit Reverse Mortgages (HECMs). Con artists, often with the aid of straw buyers (someone who is purchasing a property but not intending to live there or be responsible for the mortgage), execute a scheme designed to withdraw false equity from properties. They typically identify foreclosed, distressed, or abandoned properties (or buyers) using information contained within county deed records. Perpetrators purchase the properties using straw buyers who commit occupancy fraud by fraudulently stating they will be using them as their primary residence.

They recruit seniors to “purchase” the properties from the straw buyers. This is generally accomplished by the perpetrator transferring the deed to the property to the senior with no exchange of money. After the senior is living in the home for at least 60 days, the scam artist arrange for the senior to obtain a reverse mortgage with the aid of a fraudulently inflated appraisal, and encourage the senior to request a lump sum disbursement of the equity at closing. They facilitate mortgage fraud by arranging for minor cosmetic repairs, or falsely documenting repairs that were never performed to inflate the appraisal. They also fraudulently create fictitious loans and liens than enable them to distribute the loan proceeds to themselves, the straw buyer, and others at closing.

As more members of the ‘baby boomer’ generation turn 65, their vast and expanding real estate holdings make reverse mortgage fraud an increasingly attractive scam for perpetrators. Don’t be taken in by scam artists. If it appears shady, check with the Oregon Attorney General or with the Oregon Division of Finance and Corporate Securities.

As a Reverse Mortgage Specialist, I have been offering Oregon Reverse Mortgages for over 6 years. With over 25 years of service to clients, I have always felt that helping our seniors is helping the back bone of this country. To find out if you qualify for a Oregon Reverse Mortgage, call me or fill out the questionnaire online and I will get back to you promptly.

If you have questions about an Oregon Reverse Mortgage, please contact one of us today at 541-342-7576. Alpine Mortgage Planning is located at 1200 Executive Pkwy., Ste. 100, Eugene OR 97401. You can also e-mail Laurie here or Fred here. We are here to help you make the decision that is right for you. Reverse Mortgages are not for everyone, but they are an excellent choice for some people. Isn’t it time that you checked out the advantages of a Reverse Mortgage?

AARP Reverse Mortgage Calculator Link Available

Fred Chamberlin — Wed, 17 Feb 2010 16:00:20 +0000

Mortgage calculators are tools which allow you to quickly and easily compute what your payment will be to buy a new home or refinance your existing home. All you need to know is the value of the property, the interest rate and the term. Reverse mortgage calculators are so much more complex because take into account your expected lifespan, the lifespan of your partner, the value of your home, and how your home value compares to other homes from around your part of the country.

This is what you need for a reverse mortgage calculation:

When you were born.
When was your spouse born (if they are still living).
An estimate of your current home value.
Your zip code – needed to determine your reverse mortgage limits based on the FHA’s lending limits for your region.

AARP has one of the best reverse mortgage calculators for basic information and is provided here. Remember, this is just an estimate. Your particulars may vary. Contact us for the full estimate.

Deferred Property Taxes Payable with Oregon Reverse Mortgage

Fred Chamberlin — Tue, 16 Feb 2010 16:00:31 +0000

Senior Citizens that have deferred their taxes on their property will (probably) have to pay their taxes current if they are taking out an Oregon Reverse Mortgage. Additionally, if they get the Oregon Reverse Mortgage after April 15, they will (probably) need to pay the current year’s property taxes also. This is also true for a normal refinance.

Oregon Deferral Property Tax Account

If you are considering refinancing or a reverse mortgage, it may affect your deferral account:
Your lender may require a first lien position because of a loan transaction for a refinance, reverse mortgage, or another type of loan. In order for this to happen, you must first cancel your deferral account and pay in full so that the Department of Revenue can release the lien.
Once we receive payment in full from a title company or financial institution to payoff your current deferral account, and a signed, dated cancel statement, the lien against the property will be released. If you don’t submit both a signed cancel statement and full payment to close your deferral account, the department’s lien will remain in place and may jeopardize your loan. Please contact your lender if you have any questions regarding their lien position requirements.
After your refinance or reverse mortgage is complete, then you may reapply for the deferral program by submitting a new application form. The application must be submitted between January 1 – April 15.
If your application is received after April 15, you will be responsible to pay the current year’s property taxes to the county on November 15. You may contact the county or Deferral Unit to request an application booklet
Make check payable to the Department of Revenue and mail to PO Box 14380, Salem OR 97309.
Please include the or deferral reference (account) number or Social Security number on the payment.

Reverse Mortgage Property Tax Deferral Option Available in Oregon

Fred Chamberlin — Mon, 15 Feb 2010 16:10:04 +0000

I am not sure how many senior citizens are aware that they have the option of deferring their property tax payments but they do. If you are interested in an Oregon Reverse Mortgage and still worried about how they are going to pay their property taxes after taking out an Oregon Reverse Mortgage, this information could be of interest you. Make sure you determine that your are eligible for the Oregon Reverse Mortgage and the deferred taxes.

Oregon Tax Deferral Qualifications

Oregon provides property tax relief for qualified senior citizens.
To qualify:

On or before April 15 of the year you file the application:

If you are married and apply jointly with your spouse or registered domestic partner (RDP), you both must be 62 years old or older; if only one applicant is 62, you must apply as an individual.

Joint applicants. You must own or be buying the property together.

You must have a recorded deed to the property or you must be buying the property under a recorded sales contract. You may have a revocable trust. You are not eligible if you have a life estate interest in the property. A life estate is when you live on the property but do not own the property.

You must live on the property; however, you may live away from the property because of medical reasons. You must send a medical statement on letterhead from your health care provider to DOR (the exact medical condition is not needed).

Household income must be less than $38,500 for income tax year 2009. This includes taxable and nontaxable income, including Social Security and pensions. This is not the federal adjusted income (FAGI) amount. This income limit may change each year.

If you have filed for an income tax extension, attach copies of documentation (i.e., W-2s, 1099s, federal tax return, etc.)

If, after your initial approval, DOR discovers additional information on your household income that was not included on your application, you may be disqualified from the program and receive a billing notice.

On manufactured structures, a $55 fee will be charged to your account for DOR to become a security interest holder, and the cost of recording the lien and the manufactured structure fee will be deferred.