Homeowners over 62 who have significant equity in their home may be eligible for a federally-insured reverse mortgage, which can be used to save a struggling homeowner from a pending foreclosure. A reverse mortgage can also be useful in many other situations, because it allows the homeowner to tap a portion of the equity in their home to pay off any existing liens and use the rest of the available proceeds for whatever they want, without ever having a monthly mortgage payment again.
The proceeds from a reverse mortgage are tax-free and do not affect Medicare or Social Security. The borrower retains ownership of their home, can live there for as long as they choose, can repay the loan at any time, and can never owe more than the home's value. The U.S. Dept. of Housing and Urban Development (which created and oversees the program) says reverse mortgages are "a safe plan that can give older Americans greater financial security."
Federally-insured reverse mortgages are available from certain FHA-approved lenders, such as my company. Please feel free to talk to me about the options that may be available to you through a government-protected reverse mortgage.
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