Law Firm of Kalis & Kleiman Informs Homeowners of Potential Changes to Reverse Mortgages

DAVIE, Fla. - July 29, 2013 - PRLog -- Contact
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Law Firm of Kalis & Kleiman Informs Homeowners of Potential Changes to Reverse Mortgages

Davie, FL – A reverse mortgage, a program offered by the Home Equity Conversion Mortgage (HECM) is a special type of home loan that lets seniors and older American’s (62-years or older) convert a portion of the equity in their home into cash. Many baby boomers could use this equity to supplement their income, to finance their retirement or use for other financial needs.

So are reverse mortgages right for seniors? The real estate (http://www.kaliskleiman.com/Real_Estate) and foreclosure attorneys (http://www.kaliskleiman.com/Foreclosure) at KALIS & KLEIMAN help clients review their specific situation to see if a reverse mortgage is the best option for the homeowner.

Until recently anyone could quality for a reverse mortgage. There was no underwriting or credit card scores or check necessary; however that may be changing. The Department of Housing and Urban Development (HUD), the Federal Housing Administration’s (FHA) arm that insures loans may change the rules.

Due to changes in the economy and the housing marketing, the FHA is looking to strengthen the program, which includes raising fees and reducing the amounts that borrowers could borrow. They also want to require borrowers to undergo a financial assessment and factor in credit scores. This mostly in response to program borrowers not being able to pay their property taxes and/or their homeowners insurance over the term of the loan.

This year, a couple of large national banks which accounted for 43 percent of all the reverse mortgage business, have decided to drop reverse mortgages from their offerings including Wells Fargo and Bank of America. The financial institutions claim there is too much risk for them to carry the loans and there is a high default rate on reversible loans. They also stated that it would become a PR nightmare to evict and foreclose on seniors and the elderly or potential force out a widow who was not on the mortgage.

The FHA is currently working congress to take action on changes to reverse mortgages in the coming months with potential changes starting in October 2013.

Seniors and Baby Boomer who are considering a reverse mortgage or about to default on their loan or are going through foreclosure, should seek sound legal advice and counsel. KALIS & KLEIMAN, P.A. are recognized and experienced Real Estate and Foreclosure Defense litigation lawyers. Neal R. Kalis, M. Scott Kleiman and Olga Ruiz Baken are not only lawyers, but also trusted counselors and advocates. The firm’s personal attention to its clients’ needs and desired results produces a customized approach that this firm delivers to each case. Neal and Scott are AV-rated, which indicates that an attorney has reached “the height of professional excellence” and is recognized for the “highest skill and integrity.” They have more than 50 years of combined experience, and they have participated in thousands of transactions, settlements and trials. KALIS & KLEIMAN will help you through the entire process in order to help you reach an outcome that is the most beneficial to your future.

The law firm of Kalis & Kleiman focuses on Commercial and Real Estate Law and Wills, Probate and Trusts. The firm was founded in 1996 and is headquartered in Davie, Florida, at 7320 Griffin Road, Suite 109. Attorneys, Neal Kalis, M. Scott Kleiman and Olga Ruiz Baken can be contacted at 954.791.0477. Additional information about the law Firm of Kalis & Kleiman may be obtained from the firm's website at http://www.kaliskleiman.com or on Facebook at www.facebook.com/KALISKLEIMAN.