Increase in Foreclosures
Written By: Tina Meilinger, Senior Vice President
Over the past few months, we have noticed an increase in the number of borrowers we are seeing in Foreclosure. A reverse mortgage is a wonderful program for so many and especially those that may be struggling to make ends meet and alleviate the chance of losing their home in foreclosure.
Since the states vary on guidelines and requirements, here are some helpful questions to ask at the onset.
- Are you current on your payments now?
- Have you entered into any modification agreements with your current lender?
- Do you receive notices that you are delinquent on payments?
- Obtain a copy of their current mortgage statement, this shows the payment due and can show how late they may be on their payments.
These are just a few of the questions that can help borrower and lender as you move through opening escrow. Some states record a Notice of Default which would tell when a home may be going to sale, other states file a Lis Penden, some lenders work through their loss mitigation team. Asking early on if the foreclosure sale can be postponed often allows additional time to get the reverse mortgage closed and paid off. Foreclosures can occur not only due to a payoff but can happen on delinquent taxes, after a period of years
Remember, each state differs and some may not have any rights of redemption, so understanding and confirming at the onset will be extremely helpful.
We all want to help the borrowers and most importantly limit the chance of losing their home in foreclosure.
