Just last week I was reading the Los Angeles Times and my interest was peaked when I read an associated press article about California forclosure rates in June 2008. The article states that over 40% or 14,749 homes sold in June in CA were as a result of foreclosures. So I began to wonder where is the HOPE Program when you need it most??? Well, it looks like Under the legislation, the HOPE program could start as early as Oct. 1. You can read about the `HOPE for Homeowners Act of 2008′ or H.R.3221 here.
The issue for Reverse Mortgage eligible Seniors in California
is that there are strings attached to this program so its no free lunch as “homeowner beneficiaries share any appreciation profits or equity gains from sales of their houses in subsequent years. ” as Kenneth R. Harney with the Washington Post explains. Furthermore, the bill points out that a second lien (refinance) can not be made on the property for 5 years after the assistance is granted. This means anyone in trouble who is a Senior Citizen eligible for a Reverse Mortgage in California would waive their right to tax-free income if they take the assistance. Here’s why:
Up to 1 year the Government would gain 100% of the proceeds of the loan if refinanced. After 2 years 90% and so on.
So while some of us are waiting for the HOPE bill to go though our congress (we all want assistance for Californian’s in trouble) it is the California Senior in need who needs to consider that their options are not only to wait for help and to default on their loans strapped in Mortgage payments for another 5 years. For example, if you are a qualified senior and a home owner, and lets say you have bad credit as a result of an expensive or missive loan: You can qualify for a reverse mortgage, eliminate your monthly payments and realize any equity in your home you currently have stored up.
Again the issue is that as a senior you still have options. You shoud always consult your financial advisor, or your tax person regarding your decision to move forward with a reverse mortgage or other financially impacting decision. If you are in a tight spot and are 62 years or older bring up a REVERSE MORTGAGE if its the first time you’ve thought about one. If you’ve looked extensively and know your best option is to move forward with a reverse mortgage in los angeles or anywhere in California, Arizona, Washington, Florida or Oregon. Give us a call and mention the ‘Living in Revere’ blog and Joe Rizzo will give you a discounted rate. (800) 681-3340
We’re here 7 days a week.
Tags: Arizona Reverse Mortgage, ca forclosures, california reverse mortgage 2008, Florida Reverse Mortgage, HOPE for Homeowners Act of 2008, joe rizzo, los angeles forclosures, los angeles reverse mortgage ca, Oregon Reverse Mortgage, Washington Reverse Mortgage
