Stop Predatory Lending

Reverse Mortgage

A refinancing option usually available only to older homeowners who have built up substantial equity in their property. In a reverse mortgage, money is drawn based on the value of the property with out an immediate repayment obligation, because the lender expects repayment by sale of the property at some point in the future.

Warnings

You will not be able to pass the home on to you heirs
Client lose all equity and use of property once you get a reverse mortgage
Up front fees maybe as high as $5000.00 and client will still pay closing cost
A reverse mortgage can affect your eligibility to receive SSI and Medicaid
(Social Security payments not affected).

Option of Financing

One large payment that is given to you in cash
Fixed monthly installment that will be paid to you for a SET period of time
Fixed monthly installment (smaller Ones) that will be paid to you for as you live in the home

Permanent Modification of loan terms:

Allows you to refinance debt and or extend the term of the mortgage loan which may reduce your monthly payments. You may qualify if you have recovered from financial problems, because net income is less than before. HUD will allow homeowners to modify their mortgages, usually to change the Loan term and lower the monthly payments.

Interest Rate Reduction
♦ When existing rate is above market
♦ Permanently unaffordable due to financial hardship

Reduction of Principal Balance
♦ When the loan amount is more than the value of the property
♦ When client has a legal claim against the lender

Reamortization / Capitalization of arrears
♦ When a loan is reamortized, the EXISTING INTEREST RATE applied to the EXISTING PRINCIPAL BALANCE over the remaining loan term as if there is no default.

Payment Agreement:

A payment agreement for "forbearance agreement" "reinstatement agreement" or "deferral agreement" involves curing a default by making regular monthly mortgage payments as they are due, together with partial monthly payment on the arrears.

Temporary Interest Rate Reduction:

When a financial problem is likely to last for a limited period of time. There must be a reasonable future plan for increased income and when a full payment can be made in a certain period of time. Make sure the lower interest rate is calculated on the outstanding balance. If not the lender may add the interest you have been forgiven back into the loan amount you have to eventually repay.

Recasting of payments:

Recasting involves canceling your present obligation to catch up on missed payments, and instead of delaying your obligation to make those payment this amount is placed on the back of the loan.

Mortgage Rescission:

Permanently cancel your mortgage, such as second mortgages, first mortgages not used to purchase your home, refinanced mortgages, debt consolidation loans involving mortgage, and home equity lines of credit Also when you are dealing with a home improvement contractor, finance companies and mortgage companies that have high-interest rates and loans with high up-front cost, if you can prove financial distress.