Michigan Indebtedness and Bankruptcy - Part 3

Most reverse mortgage borrowers pay off any prior debt with an initial lump sum advance from their reverse mortgage.

The amount of money you would receive depends most on the specific mortgage plan or program you select. The experts at Kaye Financial will research every available program with various lenders to ensure the best plan with the best rate for your specific situation. Some reverse mortgages cost a lot more than others, and this reduces the amount of cash you would receive. Within each loan program, the cash amounts you can expect depend on:

• Your age – the older you are the more cash you can get, and

• The value of your home – the more your home is worth, the more cash you get and

• The current interest rate. The average interest rate for the past 15 years on the HECM monthly adjustable is 5.72% and

• Closing costs – there are no out of pocket expenses, so your closing costs can be taken right out of your net proceeds.

When the loan is over, you or your heirs must repay all of your cash advances plus interest, which is usually satisfied by the sale of the home. Because a reverse mortgage is a non-recourse loan, you or your heirs are never going to owe more than your home is worth.

Get the FREE DVD that shows how a Michigan Reverse Mortgage works.

Michigan Indebtedness and Bankruptcy - Part 2

A recent report from Demos, a New York based public policy research group found an alarming increase in credit card debt among older Americans. The Demos report “Retiring in the Red,” found that self-reported credit card debt among seniors age 65 and over increased to 89% in the past 10 years. Seniors between 65 and 69, presumably the newly retired, reported a staggering 217% increase in credit card debt over the same period of time.

More and more Americans are drowning in debt and turning to bankruptcy court for relief. As a group, people over 65 have the distinction of having not only the fastest growing home debt, but also the fastest growing share of personal bankruptcy filings and the biggest growth in demand for credit counseling. Recent studies show that over 82,000 Americans 65 or older filed for bankruptcy this past year, up 244% in the past 10 years, according to the Consumer Bankruptcy Project, a study done at Harvard.

The United States Department of Justice, which runs the federal bankruptcy trustee program, released a study that painted a grim picture of the future for many older Americans.

The Justice Department concludes that although the elderly are less likely to file Chapter 7 bankruptcy than younger people, a significant number of them do file each year. The number of elderly filers is likely to grow in the coming years.

A reverse mortgage can be done if the borrower(s) have filed bankruptcy and it has been discharged. In some cases, the bankruptcy can be paid at closing. Call Kaye Financial if you have filed bankruptcy. Our experience as one of the top a reverse mortgage lenders in Michigan will advise if a reverse mortgage can work for you!

As stated by a professor at Cornell University, “more than 620,000 elderly households could be raised above the poverty line if they obtained a reverse mortgage”.

Reverse mortgages generally must be “first” mortgages, that is, they must be the primary debt against your home. So if you owe money on your property, you generally must do one of two things:

• Pay off the old debt before you get a reverse mortgage; or
• Pay off the old debt with the money you get from a reverse mortgage.

Continued on Part 3

Posted by Ted Cantu on April 9, 2008 at 12:54 AM and can be found at http://www.1seomichigan.com

Michigan Indebtedness and Bankruptcy - Part 1

For senior adults living on a fixed income, escalating debt can lead to financial ruin.
More and more of the elderly are in outright financial distress.

One in seven households headed by someone 65 years of age or older was considered heavily indebted in 2006 – devoting at least 40% of their income to debt payments, according to the Federal Reserve’s Survey of Consumer Finances. That compared with one in ten among all households in debt.

While home loans are usually their biggest payment, the elderly have been rapidly accumulating other debts as well. Credit card bills – to cover everything from minor emergencies to ongoing essentials – have risen sharply. All told, the debt burdens of borrowers between the ages of 65 and 74 have doubled in the past 10 years according to the Federal Reserve.

Continued on Part 2

Posted by Ted Cantu - on April 9, 2008 at 12: 50 AM and can be found at http://www.1seomichigan.com

Kaye Reverse - Michigan Reverse Mortgage Specialist Part 3

Q: Do I have to pay income tax on the proceeds?
A: Proceeds received from a reverse mortgage are loan advances and not taxable income.

Q: What is a reverse mortgage?
A: A reverse mortgage is a special type of home loan that allows a homeowner to convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a tradional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD's reverse mortgage provide these benefits, and is deferally insured as well.

Q: Can I qualify for a HUD reverse mortgage?
A: To be eligible, FHA requires that the borrower is 62 years of age or older, own your home and must live in the home. You will receive consumer information from a Kaye Financial Mortgage Senior Loan Advisor, who will also review your goals and objectives in order to come to a plan which best meets your needs. There are NO credit, NO income and NO health requirements.

Get the whole article here...
http://www.kayereverse.com/asset_1.html

Posted by Ted Cantu on March 29, 2008 - for more information visit us at http://www.kayereverse.com

Kaye Reverse - Michigan Reverse Mortgage Specialist Part 2

Reverse mortgages, also known as Home Equity Conversion Mortgages (HECM) are becoming increasingly popular in America. The U.S. Department of Housing and Urban development (HUD) created one of the first forms of HECM's HUD's reverse mortgage is a federally-insured private loan, and it is a safe plan that can give older Americans greater finacial security.

If you are 62 years of age or older and have equity in your home, a reverse mortgage can turn that equity into cash. You can receive your money as a lump sum, monthly payments, line of credit or any combination of these choices. Many seniors use it to supplement social security, meet unexpected medical expenses, make home improvements and more. Since your home is probably your largest single investment, it's smart to know more about reverse mortgages and decide if one is right for you.

End of Part 2

Posted by Ted Cantu on March 29, 2008 - for more information visit us at http://www.kayereverse.com

Kaye Reverse - Michigan Reverse Mortgage Specialist Part 1

ATTENTION: SPECIAL MARKET - OPENING UP FOR SENIORS

Michigan Spotlight on Reverse Mortgages!

Find Out How A Reverse Mortgage Can Work For You!

For many Americans retirement is a mixed blessing. On one hand, it is a time to enjoy family and friends, explore special interests, cultivate new skills and enjoy living to the fullest. But retirement years can present special challenges. All too often, people find themselves in need of extra income just to keep up. A reverse mortgage will help older Americans live in their home comfortably by turning the equity in their home into extra cash or monthly income.

Reverse mortgages, also known as Home Equity Conversion Mortgages (HECM) are becoming increasingly popular in America. The U.S. Department of Housing and Urban development (HUD) created one of the first forms of HECM's HUD's reverse mortgage is a federally-insured private loan, and it is a safe plan that can give older Americans greater finacial security.

Source: http://kayereverse.com/asset_1.html

End of Part 1

Posted by Ted Cantu on March 29, 2008 - for more information visit us at http://www.kayereverse.com