It is critical that you understand the advantages and disadvantages of a reverse mortgage in order to make the best decision for your situation.

I spoke with a couple just the other day who are facing a difficult dilemma. Apparently they had secured a reverse mortgage from another individual just a couple of years ago and now they are realizing that it may not have been the best strategy for them. It seems that they now realize that their home is no longer suitable for their needs. It’s a multi-story and, due to health problems, they really need everything on one level — a ranch configuration would be much better.

They took out the maximum loan at the time, and if they didn’t need to move out of their current home, there would not have been a problem. The challenge is the depressed real estate market in the Metro-Denver area. After some research, they discovered that their home value had declined significantly. So much so that they are in a zero equity position. To make matters worse, their cash flow situation is not very good. Because of their cash flow issues, the fact that their reverse mortgage is rather new, and their inability to sell their home — they are in a very difficult situation. (more…)

Just in! Reverse Mortgage News - trend on the rise and expected growth to continue…

Whether you’re seeking reverse mortgages in Denver or Boca Raton, the trend is that the reverse mortgage is on the rise. FHA insured 76,351 reverse mortgages in the 12 months ending September 30, 2006, a 77% increase over the previous year. Forecasters suggests that more than 105,000 loans may be insured by the end of September 2007.

During the 1990s, the demand for a reverse mortgage in the Denver CO metro area and elsewhere was extremely small with less than one percent of eligible homeowners nationwide actually opting for one. Because many baby boomers will reach retirement with insufficient wealth and will need options for increasing their liquidity, this rising trend most certainly will continue. (more…)

 All you ever wanted to know about Colorado reverse mortgages -

I don’t have a job, can I still get a reverse mortgage in Colorado?

Yes, since there are no monthly payments required, no job is required. Different from a forward mortgage where payments are required and your equity builds, the reverse mortgage pays you and the equity diminishes.

Are there any other requirements of me before I get my loan funds?

In order to obtain a reverse mortgage in Colorado, a third party approved agency counseling session is required. Your loan office will set this appointment for you. You can choose to go to the counselor’s office or the session may take place over the phone. You should plan on the appointment lasting about an hour. The intent is to ensure that you are making an informed decision regarding the reverse mortgage. (more…)