Well, through this article, we are going to tell you an effective way to stop foreclosure and save your home. Though there are a number of ways by which you can avoid the foreclosure (like a short sale, refinancing, loan modification, Deed-in-lieu, etc.) but here we are going to tell you about the Reverse Mortgage and how it can help you to stop foreclosure.
What is Reverse Mortgage?
As the name depicts, a reverse mortgage is the reverse of a traditional mortgage. In this, you don't have to pay the monthly payments to your lender; instead, the lender will pay you the loan proceeds in a lump sum as a line of credit or a monthly payment. This procedure exempts you from the need of making monthly payments and lets you stay in your home.
How much money you can get through a reverse mortgage?
However, there is no defined limit for the reverse mortgage but the amount of loan (you will be qualified for) depends on the equity of your house. In the case, you are not able to get enough amount through the reverse mortgage that will let you pay the full amount owed, your lender may accept a reduced lump sum of the mortgage.
Can a reverse mortgage become due and payable?
Well, the answer is yes and it can happen in the case:
If the borrower sells the property
If he moves permanently out of the house
If he defaults on the mortgage obligations
or if he dies
From where you can get the Reverse Mortgage?
There are a number of lenders who will give you a loan regardless of your past mortgage history and the credit score. It is because the reverse mortgages don't need the credit or income qualification. As long as there is enough equity in the property, you will get the reverse mortgage even if you are behind on your payments.
Whenever you apply for a reverse mortgage to stop foreclosure Houston, you need to inform the lender about your property's condition, its estimated value and the mortgage balance you owe. You may also need to show the statements of outstanding debt and income tax returns. Always remember that though income is not considered by many lenders but still you need to remember that the interest rate will depend on your credit score.
A reverse mortgage is considered as one of the best options for stopping foreclosure. It will not only let you avoid foreclosure but will also allow you to stay in your home; however, you need to ensure that you are getting the loan from a reliable lender. You may consult many lenders that may be interested in issuing a reverse mortgage and then, can compare their deals to choose the best one.