We just released a new article which explains how reverse mortgages can be used to prevent foreclosures–even in cases of bankruptcy.
Avoid Foreclosure
The article discusses how, if the youngest spouse in the household is 62 years of age or older, the household could be eligible for a reverse mortgage, even if they are bankrupt or at risk of foreclosure. It emphasizes the importance of time in the process. A short pay agreement on the mortgage is usually necessary and that can take time to negotiate.
Depending on the value of the home and the amount remaining in the mortgage, the proceeds from the reverse mortgage can be used to help the lendee get out of debt, settle the bankruptcy, or simply to provide some extra cash. The NYTimes wrote a story about a week ago that detailed how a reverse mortgage had helped a New Jersey couple get out of bankruptcy and avoid the foreclosure of their home and their business.
While there are many people who might be able to benefit from a reverse mortgage, those at risk of foreclosure or who have filed for bankruptcy are two of the groups of people who potentially have the most to gain from a reverse mortgage, but who might not be aware that they are eligible. This is even more significant because when foreclosure is eminent, time is of the essence. If you or someone you know is in this position, act quickly. You could save your home.