Where to Seek Federal Loan Modification for American Seniors

A reverse loan, also known as lifetime mortgage is available for American senior homeowners who want to receive a sum of money out from his or her home’s equity. Instead of making monthly mortgage payment to the lender, the borrower may get a certain sum of money either as a single lump sum or in multiple disbursements. This is one way to get additional income out from your own property. However, the downside is that your lien increases as the homeowner keeps on receiving payments. What’s more, the interest incurred over the default will eventually lead to foreclosure in the future. The agreement is that the payment of such mortgage will not transpire until the homeowner leaves his or her house, he or she dies, or when the home has been sold. In the United States, a reverse mortgage should be the only loan made over the property, one cannot get additional loan even if the equity of the house has increased. If you are an American homeowner looking for a federal loan modification program, that will not only allow you to stop making monthly mortgage payments but also supplements your income, apply for the Home Equity Conversion Mortgage (HECM).

The Home Equity Conversion Mortgage which is a program under the Housing and Urban Development is the only reverse mortgage for seniors insured by the US federal government. This federal loan modification program is available only for homeowners who can meet these set of requirements:

  • His or her mortgage is under a FHA approved lender.
  • The homeowner is 62 years old and above upon the date of application
  • The property with which he seeks a reverse mortgage with is his primary residence.
  • Able to participate in any consumer information seminar conducted by any HECM counselor in the area.
  • The house must be a one to four unit residence and must meet the FHA requirements.

You can ask any HUD or FHA approved counselor about the program’s eligibility requirements and other loan modification alternatives suitable for you. Furthermore, you may use the reverse mortgage calculator to help you determine if you are able to meet the program’s financial requirements. After the counseling and when you are able to meet the FHA’s Home Equity Conversion Mortgage requirements, you may now apply for this federal loan modification program. You may also use the Home Equity Conversion Mortgage to buy another home if your available cash on hand can afford to pay the difference between the HECM proceeds and the sales price including the closing costs of the house you are about to purchase. Again, the reverse mortgage is available only for American homeowners with ages 62 and above. If you do not qualify for HECM and need to modify your mortgage, there are other loan modification alternatives for homeowners like you. Talk to a HUD approved loan modification expert and see if you may qualify for any federal government foreclosure help program.

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