Saving Seniors Homes from Foreclosure in San Antonio, Texas Using a Reverse Mortgage

With the economy in the state it’s in today, more and more people are being faced with the possibility of foreclosure. Many people are finding their mortgage payments harder to make each month, and this is especially true for seniors. Many seniors rely on their retirement funds or Social Security benefits to help pay their mortgages, and those accounts sometimes just aren’t enough to keep up. There’s nothing more disheartening than having a home that you’ve worked for years to pay off pulled out from under you.

Fortunately, there are several ways to fend off foreclosure on a home. One of these options that is specific to seniors is a reverse mortgage. It may sound like it wouldn’t be much help since “mortgage” is right in the name and that’s what you’re trying to get rid of – but it really may be the answer to your foreclosure problem.

Reverse mortgages are only available for people of age 62 or higher. A reverse mortgage is somewhat like a home equity loan in that you’re taking out money against your home’s equity. That might not sound terribly useful to someone who still owes money on their home, but a reverse mortgage can actually be taken out on a home that is still being mortgaged. In most cases, a reverse mortgage provides enough of a loan to pay off a primary mortgage and still have money left over.

It is important to note that you can only use a reverse mortgage in this way if the loan will provide enough money to pay off the primary mortgage. In other words, the reverse mortgage has to be the primary lien. Fortunately, unless the home has seen a drastic drop in value or you’ve just taken out a mortgage, this is not a difficult condition to meet. In most cases, you’ll even have access to some extra money that you can put toward home renovations or just save for an emergency.

A reverse mortgage does not come due until the borrower moves out of their home, sells it, or passes away. If the home is sold, the proceeds from the sale are applied against the reverse mortgage. One thing that’s nice is that if proceeds from the sale aren’t enough, then there’s no personal liability for the borrower or their heirs. If the loan ends because the borrower passed, the heirs also have the opportunity to refinance the home.

Reverse mortgages can provide a powerful solution to your foreclosure woes. Now that you have the basic idea, be sure to do some research so that you fully understand the these loans.