Finally, I can now qualify for a reverse mortgage!
Post by Sam Collins

Last December, I was contacted by a senior couple who applied for a reverse mortgage.  Their primary goal for doing the reverse mortgage was to rid themselves of two mortgages totaling around $90,000.   Mrs. Z, wanted to fully retire and did  not have to worry about working.  Mr. Z was unable to work, because of  severe arthritic joint pain.

We took the application and ordered the appraisal.  Unfortunately the home value came in around $10,000 less than we expected.  This unexpected drop in value, left the loan shortfall.  Shortfall  is when there is not enough equity (based on appraised value) to cover the amount of money owed on the residence.  In the case of Mr. & Mrs. Z the shortfall was around $3800 and they did not have enough reserves to cover the difference.  Therefore, unfortunately we were unable to do their reverse mortgage in December.

Finally, some good news.  About a month ago, we announced several changes in our programs.  Our fixed rate HECM (reverse mortgage) program, no longer has a service fee set aside in it’s calculations, thereby yielding around $4500 more to Mr & Mrs. Z.  Plus, our fixed mortgage program no longer has an origination fee, thereby yielding another $3000 for Mr. & Mrs. Z.  The bottom line new calculation resulted in Mr. & Mrs. Z yielding about $3400 in cash,  plus being able to pay off their two mortgages and eliminating their mortgage payment, yielding an additional cash flow of $12,000 per year. 

Finally, some good news for seniors who may have had a shortfall in the past.   
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For a free informational package on reverse mortgage programs,
call Sam Collins, Delaware Financial, 877-266-9500 toll-free.
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For more information or to ask a question, you can email
Sam by using the contact form at the top of this page.
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If you want to see how much you qualify to receive,
for your reverse mortgage, you are welcome to use our
Free reverse mortgage calculator:
http://www.seniorsrighttoknow.org/calculator.html