Home Loan Forbearance Expanded and New Opportunities for Reverse Mortgages

PRLog (Press Release) - May 1, 2012 - The California Association of Realtors announced that “Freddie Mac is giving mortgage servicers expanded authority to provide six months of forbearance to unemployed borrowers.”  Given existing Freddie rules, homeowners who are unemployed now have up to twelve months of forbearance if their loans are with Freddie Mac.  This helpful program for those who are unemployed can be of tremendous value.  Call us for more information.

Annamaria Andriotis writes in The Wall Street Journal that, “Converting home equity into cash has been a challenge. . . since the real-estate downturn, but a growing number of lenders are quietly reviving a loan for seniors that does just that: the reverse mortgage.”  CPK Mortgage now offers reverse mortgages, which can be a valuable resource for those over 62 years-old.  Call today for more info.

Additionally, reverse mortgages can actually be used to ACQUIRE a home.  With a large enough down payment, those who are retirement age can down size from a large home to a small home (or a home with significant equity to a new property) and can use a reverse mortgage for the financing.  This way, they still have the benefits of a reverse mortgage in the new property.