PROPOSED APPROPRIATION SENIOR RELIEF PROGRAMFor the purposes of this overview we will call the program“Senior Citizen Housing Supplement Program” (SCHSP).Remember, with a Reverse Mortgage a senior does not have toqualify with credit scores, income or assets. They need to be 62years of age or older and own a home.The program would require an appropriation bill; the amountwould have to be determined. The funds could come from oneof the stimulus bills already approved and on the table.Once a senior is identified for SCHSP, they would be requiredto make application for a Reverse Mortgage. Once approved theamount of the funds the senior would have available to paytheir existing mortgage off would be compared to the balance of their loan.Lets assume the balance of their existing loan is $26,000 morethan what the Reverse Mortgage will bring. SCHSP would thengo to the lender and negotiate a settlement. SCHSP wouldexpect the lender to participate in the shortfall.We will assume in this case that SCHSP was able negotiatecoming up with $13,000 from the fund and the lender loweredits payoff by $13,000. In this case, the lender did not have toforeclose on our senior. Not only did the lender not have toforeclose on the property, the lender was rid of the propertyonce and for all. The lender also saved thousands of dollars.The lender had no foreclosure and legal costs, no realtorcommissions, no maintenance up keep costs, no taxes andinsurance costs and most of all, the lender did not have to sitfor who knows how long before the property sells.The best thing that comes from this program is that our seniorwas not foreclosed on, can live in their home for the rest of their lives and never have a mortgage payment to make.
Leave a Comment