Former HUD Chief Touts Reverse Mortgage Benefits

Staying in one’s homes reflects not only a financially sensible housing option, but also helps give meaning to one’s life, according to former Secretary of the Department of Housing and Urban Development (HUD) Henry Cisneros in an op-ed for The Miami Herald. Read the article by selecting the link below:
http://reversemortgagedaily.com/2013/04/25/former-hud-chief-touts-reverse-mortgage-benefits/#at_pco=smlwn-1.0&at_si=562a830140179214&at_ab=per-2&at_pos=0&at_tot=1
For more information, please contact me at http://www.MartyAppel.com or write me LM_Appel@yahoo.com

Reverse Mortgages Can Be A Retiree’s Saving Grace

Housing Wealth Manifesto/ Forbes http://www.forbes.com/sites/jamiehopkins/2015/10/07/correctly-using-reverse-mortgages-can-be-a-retirees-saving-grace/

Jamie Hopkins is a contributing editor to Forbes Magazine and his recent article points out the need for seniors to consider using reverse mortgages in their retirement planning.

The lack of focus on home equity in retirement income planning is nothing short of a complete failure to properly plan and utilize all available retirement assets. This needs to change immediately because strategic uses of home equity, especially reverse mortgages, could save many people from financial failure in retirement and help stem the overall retirement income crisis facing Americans.

I can meet with older homeowners and help educate them on the use of their home equity in retirement.  I also will present the facts to Financial Planners and other professionals to educate them on Housing Wealth in Retirement.  Contact me at LM_Appel@yahoo.com or call me 510.701.2167.

 

Textbook Case of HELOC Reset; HECM is the White Hat

Jennie called me and was concerned that the HELOC (Home Equity Line of Credit) she had with Wells Fargo was going to be reset the first of the year. Her payments were going to increase from $373 per month to over $1,200 per month. She said that she did not have the income to make the increased payment. So we started talking about using the HECM (Home Equity Conversion Mortgage) reverse mortgage to replace her HELOC. She loved the idea plus she would have a credit line that would grow over time and would never be changed or reset.
Jennie’s situation is a textbook case that had many of the benefits of a reverse mortgage. Her charming home in Alameda, CA was appraised at $644,000 so she would receive the maximum from her FHA HECM. Jennie is 74 years old and would pay off her $111,000 HELOC with the reverse mortgage and she would get another $25,000 to pay off her credit cards. She then would have $269,117 in a credit line account. This line would grow at 3.70% and would adjust as her interest rate on the funds she used would adjust. What a deal. That growth would amount to at least $1,000 per month added to her credit line.
The financial assessment that HUD recently implemented on borrowers was no problem for her. She kept her insurance and property taxes current and she kept meticulous records. We took her reverse mortgage application on August 10 and signed closing papers September 17.
Jennie is one happy lady with no monthly mortgage payment and her fears of the resetting HELOC are behind her now.
If you are 62 years old or older or know of someone who is, this may also help you or friends or family. Call Marty Appel at 510.701.2167 or email him at LM_Appel@yahoo.com to talk about your situation.

Transitions – All For the Better

I have just recently moved to another company – Retirement Funding Solutions (RFS). Retirement Funding Solutions was created to address and solve one of the most significant challenges facing the Baby Boomer Generation today … Being Financially Prepared for Your Retirement Years. My website is http://www.MartyAppel.com

Our Core Values:
Integrity: I am committed to the highest level of integrity when working with clients in obtaining a HECM loan. I will always act in a manner that reflects sound character, truthfulness and fairness.

Loyalty: I understand that loyalty is built upon trust. My loyalty to my borrowers is to present all options that are in their best interest (not mine). Throughout the loan process and afterwards I will advocate for you as your loyal ally.

Diligence: The HECM loan requires a thorough and professional approach. I will work hard and efficiently to close your loan in the shortest possible time showing care and tenacity in walking my clients through the process.

Compassion: Each of my client’s situations are unique. As such I will always work to address any concerns throughout the process. My clients are not numbers but a valued customer and I will always be mindful of their unique situation and circumstances.

If you or a family member or friend want a free reverse mortgage quote please give me a call (510.701.2167) or email me LM_Appel@yahoo.com. I want to help show the pros and cons of reverse mortgages.

Oakland Resident Keeps her Home with a Reverse Mortgage

It all started with a phone call from Patricia.  She had a client in Oakland that the bank could not help.  Her debt was too much and her income was too low.  Patricia told Ella that I may be able to help her improve her cash flow.  Her Oakland home was a quaint craftsman and she was a very gracious person.  She needed help.  When I arrived I noticed her concrete driveway was cracked and the side of her house was cracked from the roofline to the foundation.

As we talked she said that she needed money to replace her disabled car in the driveway.  She wanted transportation.  Her living room had a ceiling that was much damaged from roof leaks.  She had a friend that had made repairs but that did not stop the leaks.  I had a plan that I recommended to her.  I would have a contractor Gary’s Brick Stone and Concrete from Oakland, come by and evaluate the work needed for the crack repairs to the home and driveway.  I would also ask GSR Roofing, an Oakland contractor, to come by and evaluate the roof.  Ella seemed to like what I presented and I could move forward.  In the meantime she would arrange a counseling session to get the reverse mortgage started.  My strategy would be to get the work completed before the appraisal so that would not delay the process further.  Both Gary (Gary’s Brick Stone and Concrete) and Geraldo (GSR Roofing) agreed to do the repairs after Ella approved their estimates.  These Oakland contractors were willing to complete the work and get paid at closing.  They were fantastic to agree to do this and help out an older homeowner.

Geraldo showed me pictures of the damaged roof and I could tell that Ella had been taken advantage of.  A form of Elder abuse, whoever did the previous work did a crappy job and it failed causing the interior damage to Ella’s home.  Geraldo made repairs and also arranged to make repairs to the ceiling in the living room, entry, and master bedroom. Gary did a beautiful job with the concrete repair and repairing the cracks in the stucco as well as repair cracks around the chimney and painting the sidewalk and driveway.

Then I had another surprise, Ella had four judgements against her plus unpaid garbage.  We had to clear these up and title had their work cut out for them.  Oakland garbage bills left unpaid are placed as liens on the property so we got payoff on this and other judgements.  Thankfully the other judgements were minor (less than $300) but we still have to get them resolved.  This took several weeks while my contractors had to wait to get paid. They were very patient but hung in there with me.

Now three months after application we have a clear to close and can get documents prepared.  Ella signed the documents.  She was expecting more money but because of the repairs her cash was reduced by about $29,000 and the lower appraisal on her Oakland home was less than she expected.

In the end we paid Ella’s mortgage, repaired her home, gave her some cash to buy a used car and left a small amount in a credit line account for her to have available in emergencies.  We improved her cash flow by $600 per month.  She is very happy with the result.  Now to move on to help other Oakland homeowners.

WOW!!! A NO COST LOAN

Security 1 Lending announced a no cost reverse mortgage this week. Finally we have a product that Financial Planners and Estate Planners will love. This product is ideal for the Standby Reverse Mortgage that homeowners can use in their Wealth Management strategy.

Homeowners will be required to pay for their HUD counseling ($125) and $300 for partial payment of the appraisal but the rest is zero cost. They must also activate their account by taking $50 at closing. Seems so simple.

The best part is the growth rate of this no cost reverse is awesome. You will have to call me for details.  You can reach me at 510.701.2167 or email me at Marty@MartyAppel.com

I have also put a link here for you to look at another view of reverse mortgages. It is published in the Wall Street Journal by The Experts. The Experts are a group of industry, academic and cultural thinkers who weigh in on the latest debates in The Journal Report. Check it out.

http://blogs.wsj.com/experts/2014/12/01/the-case-for-reverse-mortgages/

Positive Changes from HUD – More Generous Reverse Mortgage Benefits Coming

HUD announced this week that the rules are changing for borrowers wanting to get a reverse mortgage.  These rules are positive changes much to the liking of older homeowners. 

First, borrowers who have spouses that are younger than 62 can now get a reverse.  In fact the new Principal Limit Factor is calculated all the way down to 18 years of age (don’t laugh its true).  The new PLF tables now include figures for ages under 62 following a decision by HUD to allow for non-borrowing spouses of new reverse mortgage borrowers to remain in their homes following the passing away of the borrower, under certain terms and conditions. The PLFs reflect loans for borrowers who are age 62 and older, but also loans for married couples where one borrower does not meet the traditional 62 year old age requirement.

Secondly, borrowers who are 64 and older will see their benefits increase.  Younger ages will see slight increases (less than 1%) but older borrowers will see up to a 9% increase.

These changes are effective for applications dated August 4, 2014 and later.  Call me (510.701.2167) or email me (LM_Appel@yahoo.com).  I will be happy to discuss with you.

 

Group Hug in the Ending Scene

It all started on October 1, 2013 when I got a call from Patricia, Mortgage Loan Officer at Wells Fargo Mortgage.  She asked me to talk to one of her clients, Ms. A, who needed some financial help.  Patricia and I had worked together on several cases before.  It seems her client, a 73 year old widow had a major roof leak and she needed funds to make the repairs.  When I visited her she told me that she could not get funds by refinancing her current mortgage with Wells because she did not have the income or credit to qualify for more funds.  Her only income was a small pension and Social Security, just enough to pay for the current mortgage and a little left for day to day expenses.

After I met with her I gave her hope that Security 1 Lending could help her with a Reverse Mortgage.  I expected that her current home value would be sufficient to pay off her current loan and have funds to repair the roof.  So she decided to move forward.  After all of the initial steps to application an appraisal revealed that she had more problems than just the roof.  Her rear deck was rotten and falling down, her bathroom shower, commode and sink were inoperable, her sidewalk and driveway had major cracks and the foundation had two major cracks, plus paint was peeling around the windows and doors and chipping in other areas around the house.

FHA requires that these items had to be repaired before we could close the loan. Desperation set in when I found she had no funds to make the repairs amounting to about $27,000.  I had three White Knights who came to the rescue.  The roofer was Gerardo Chavez, GRC Roofing. The Foundation Inspector was James Pearl, Pearl Engineering and the General Contractor was Gary Wade, Wade Brick, Stone and Concrete.  These three heroes agreed to do the work required and wait for their payment when Ms. A’s loan closed.

So now it is Thanksgiving week, Gerardo started on the roof the day after Thanksgiving and the Gary started his work the next week. James inspected the foundation and found minimal work needed to be done, as we suspected.  Thank goodness we did not have any rain to hamper the work and all work was completed, inspected and Ms. A’s loan closed the week before Christmas.

It is great to have referral partners who are willing to step in to help a homeowner in need.  My thanks guys for bringing happiness to a sweet lady who wanted to live in her home for years more.

THIS IS WHY I LOVE WHAT I DO

Being a Home Equity Retirement Specialist can very fulfilling and rewarding.  This story just makes my work feel so good.

I received a call in late August from Dorothy.  She seemed very distraught because the banker she had talked to told her that she should call me so I could help her.  He told her that she had a choice either to file bankruptcy or get a reverse mortgage.  I met with her and her best friend and discussed what a reverse mortgage could do for her.  She reluctantly decided to go ahead after her friend agreed this would be the best solution.  We completed the application and on Friday August 27 we signed the closing papers one month after we completed the application.  Sitting at her dining table we could smell the pot roast she had cooking along with the cornbread in the cast iron skillet she had just taken out of the oven.  Dorothy continued to be very skeptical throughout the process always thinking something was going to go wrong.  Every time I called her to give her a progress report she was expecting me to be calling her to tell her something was wrong.  I kept reassuring her that all was going well.  She told me that she had not slept at all during this whole process worrying that something was going to go wrong.

This morning I got the word that the loan had funded and gave Dorothy a call to let her know.  Again she thought I was calling to tell her something was wrong.  I told her we had sent money to her bank account as she wanted and we had sent money to pay off her two mortgages.  There was a pause on the other end of the line and I could feel her sigh of relief and excitement that her problems had come to an end.  She could also now pay off the credit card debt that had been hanging over her head as well.  She was almost speechless and kept praising me for saving her life.  I thanked her and told her this is why I love what I do.  I will see Dorothy again soon.  She told me she will sleep so good tonight like someone has knocked her out.

 

 

If you work with older homeowners who need money to live day to day now is the time to ACT.  FHA is reducing the Reverse Mortgage Benefit for homeowners.  That change is taking effect on September 28.  Read this article to get a fuller explanation: http://www.nytimes.com/2013/09/07/your-money/tighter-rules-will-make-it-harder-to-get-a-reverse-mortgage.html?ref=your-money&_r=0 

Now call me 510.701.2167 or email LM_Appel@Yahoo.com