Myrtle Beach Reverse MorgageProperty owners who are worried about foreclosure search everywhere for assistance and many consider getting a reverse mortgage. These people may have purchased their house sometime over the last 2 to 5 years, during a period when the housing market was robust and prices were rapidly increasing. These property owners had outstanding expectations of paying up for a while and considered that they would eventually sell or refinance, and enjoy a bit of profit. But, their massive mortgage ultimately turned into a burden. Because of that, they started to have problems keeping up with the mortgage because of various reasons like lowering retirement income, loss of a job, or perhaps a bad financial preparation.

It’s possible for a reverse mortgage to help these homeowners and relieve them of their burden. But, a reverse mortgage is not for all of them. There are still certain factors that need to be considered. First of all, they should be at least 62 years old and have sufficient equity to be eligible for assistance in the form of a reverse mortgage. The cash obtained through a reverse mortgage may fulfill their existing mortgage(s), thus eliminating their mortgage payment entirely. In case they meet the requirements, then they would be free of their worries of foreclosure. However, several of these homeowners won’t be able to get a reverse mortgage because of the equity amount required by the program.

If for instance, the senior homeowner got a loan of $500,000 for a house that has an estimated value of $600,000, then a reverse mortgage won’t be an option. A reverse mortgage needs much more home equity. Lenders have imposed this requirement since for as long as the homeowner will continue to reside there, the lender will not be able to ask a homeowner to pay the mortgage.

So when can a homeowner who faces foreclosure apply for a reverse mortgage? In a nutshell, if they have sufficient equity. The amount needed will depend on the conditions and is associated with their age – if they are older then they will need more equity. The equity that they require lessens proportionally along with their age based on the interest rates, the age of the home, as well as its location. How much cash provided under a reverse mortgage (to repay a pre-existing mortgage or for some other purpose) is generally between 30 and 60% of the value of the home.

A reverse mortgage Myrtle Beach is a wonderful tool permitting the senior homeowner to settle all active mortgages on a property if that homeowner is eligible for a sufficient amount. The amount should be enough to settle all loans, which includes second mortgages because they are not allowed together with a reverse mortgage. All outstanding liens should be repaid, such as all past due judgments and taxes. When the grand total of all the debts is bigger than the total amount of the available loan under the reverse mortgage, then the senior homeowner won’t qualify. That’s unless of course, they can pay off an adequate amount of the debt for the reverse mortgage to pay for the rest.

Numerous senior homeowners dealing with foreclosure may benefit from the reverse mortgage. Those residential owners who are under 62, and are thus regarded as “too young,” and who haven’t established enough home equity, would be compelled to search for other options.

CallĀ South Carolina Reverse Mortgage Services if you need more information and if you wish to find out if this option is right for you.

South Carolina Reverse Mortgage Services
Myrtle Beach, SC 29577

South Carolina Reverse Mortgage Services
Charleston Office
Charleston, SC 29401

Serving all of South Carolina.