Foreclosure News

The Associated Press came out with an article yesterday noting that mortgage foreclosures are setting new records. It referred to the Mortgage Bankers Association reports that mortgage holders that have started the foreclosure procedures reached a new high of .65%. The delinquency rate was also up sharply at 5.12% of all loans. This measure tracks the number of people who are behind in their payments but have not yet entered the foreclosure process.

Our country is indeed in the midst of frightening financial times for many people who are in what is considered “at risk” mortgages. I can’t imagine what some of our seniors are facing in regards to these tough times. It wasn’t long ago that for many, it made sense to them to be in an adjustable rate mortgage; or one that remains fixed for a period, then adjusts after the first 2-3 years as interest rates were very favorable. The article continues: “An estimated 2 million adjustable rate mortgages are scheduled to reset this year as sharply higher interest rates.” For those on a fixed income, this could be devestating.

Reverse mortgages may be a good option for those seniors who are short on cashflow, and have at least 50% equity in their homes. As I have stated earlier, it provides the senior with a peace-of-mind that they will never be squeezed out of their home due to upside-down mortgages. There are guarantees in place that protect the homeowners. In times like these, it may just be the situation that they are looking for.

For any questions about reverse mortgages and questions around a particular situation, please contact me at greg.gulliford@pmrmtg.com or call me at 360-944-6636.

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