It’s been difficult for her daughter to find solid, stable work in this tough economy so, once again, Marcia was there financially to support them. She had to take on a part time job herself to try and make ends meet. With the rising cost of food, gas, utilities and the cost of living — she was just going deeper and deeper in debt. It was spiraling out of control and Marcia was panicking.

Marcia, in desperation, decided to look into a reverse mortgage. The numbers showed that Marcia could pay off her current mortgage, obtain $5,000.00 to pay off some bills and have another $43,000.00 available in a line of credit for emergencies down the road.

Her concern was could she qualify? When she learned that she did not need good credit to qualify, it was the answer to her prayers.

She completed her counseling, went to application, the appraisal was performed and she closed her reverse mortgage in less than three weeks. Marcia was so relieved to have this behind her. She kept saying “you don’t know what a burden this is off my shoulder.” I can now focus on helping my daughter get her life established and get back to my retirement…”you just don’t know how relieved I am.”

I was so delighted to help Marcia get her finances and life back in order that it really made me feel happy too — that I was a part of getting this family back on track … priceless!

720.641.3482

TO PROTECT YOURSELF FROM HOME IMPROVEMENT FRAUD:

1. Only do business with local and well established businesses. Never do business with someone who shows up uninvited on your doorstep.
2. Never allow anyone into your home that you do not know and trust. Report any suspicious visitors to your home to local law enforcement.
3. Never allow someone to pressure you into a hasty decision. If someone tells you there is a serious problem with your home, get a second or third opinion before proceeding with the repairs.
4. Before doing business with any company, check its record with the Better Business Bureau and if it is registered with the Secretary of State.
5. Get a written contract spelling out what work will be done, what materials will be used, what it will cost and when work will start and when it will be completed.
6. Verify that the contractor has workmen’s compensation and liability insurance before any work begins on your home. Have yourself listed as an additional insured on the contractor’s policy.

Need help? Have Questions? Call the Consumer Protection Line: 720.874.8547

For additional information about senior scams - scams targeting seniors.

Currently another 2% will go towards the Origination Fee. This is how your loan officer and mortgage company will get paid to process, fund and close your loan package. Part of the FHA Modernization Bill about to be presented to Congress is to have the origination fee be capped at 1.5%.

About another 1% will be attributed to regular fees charged in any mortgage process. Appraisal, Credit Report, Flood Certification, Title Insurance, Courier Fees, Recording Fees, etc.

On your closing statement or HUD fee sheet, you may see other charges such as Home Owners Insurance, Property Taxes and pay offs to any current mortgage holders on the property. This will be specific to your transaction and may not be charged for all transactions.

For further information or questions please contact me at 720.641.3482 or bartonkaren@comcast.net

I have spoken with several seniors in the past few weeks telling me they are receiving calls from folks indicating they are from AARP or the IRS. In this conversation they sound very official and convincing. They are telling seniors in order to get their rebate from the Economic Stimulus Act of 2008 they don’t have to go to all the bother of filling out their tax return for 2007. All they need to do is give them their social security number and they’ll do all the work for them on their behalf. This is a scam. Neither AARP nor the IRS is making these phone calls.

There are 2 simple steps in getting your Stimulus Package Rebate:
1. File your 2007 federal tax return
2. Wait for your check to arrive in the mail.

Your rebate will be determined by the information you provide on your 2007 tax return. If you are contacted by anyone claiming that you have to provide any information other than what was on your return or that you have to pay a fee or that you have to do anything other than file your tax return, IT IS A SCAM!

For more information on the Economic Stimulus (tax rebate) payment, look for the mailing from the IRS that should be in your mailbox, or go to the IRS website, www.irs.gov, or contact me at 720.641.3482. The district attorney for the 18th Judicial District for the state of Colorado is also taking calls on their consumer protection hotline at 720.874.8547.

First and foremost, the Economic Stimulus Package has taken priority over the FHA Modernization Act in Congress. It appears the stimulus package is what the government feels will help keep the country from going into recession and thus should be put into effect quickly. The bill for the Economic Stimulus Package was signed into law on February 13, 2008. HUD has 30 days from the day the president signed the package into law to identify the impacted Metropolitan Statistical areas.

How Will the Economic Stimulus Package Affect the Reverse Mortgage?
Both FHA and Fannie Mae are saying their reverse mortgage products will not be included in the Economic Stimulus Package for loan amount increases.

Will the FHA Modernization Act Affect the Reverse Mortgage Lending Limits?
We hope so. The Act has included a loan limit increase across the board to $417,000 vs. the individual county loan limits now in place. The bill still needs to be passed by Congress before it can go into effect.

If you have any questions regarding a reverse mortgage, I can be reached at 720.641.3482 or e-mail me at bartonkaren@comcast.net.

Before you go to closing, your Loan Officer should have given you a copy of the closing documents for the state you live in. If you did not receive this for your review, you should request them.

Another document you should receive before attending your closing is a copy of the final HUD Settlement form. This will give you the actual charges being assessed for your reverse mortgage loan. It should be close to the Good Faith Estimate you received at application. If it isn’t, this would be a good time to question your Loan Officer on the differences. You can still back away from the loan at this point if you are not comfortable with the responses to your questions or concerns about the differences in charges. You should receive this form at least 24 hours before closing.

You should also expect your Loan Officer to attend your closing or at least be available by phone for the entire time of closing. At times, you may have questions about the loan itself, and your title rep or notary may not be able to answer them. If your Loan Officer is available to answer those questions, you can continue on with the closing process.

The closing representative will also want to see a copy of your identification, whether it is a driver’s license or a state issued identification card.

Most reverse mortgage companies will offer you a direct deposit service for your line of credit funds; this requires a voided copy of a check from the account you choose to have those funds deposited into — if you have that ready to go at closing that will assist them with the process.

You will also be advised at closing what happens from here. If you have chosen a refinance reverse mortgage, you will now start the clock for what they call a 3-day right of rescission. This means you have 3 business days to cancel the loan if you decide it isn’t right for you. You must contact your Loan Officer within this time frame if you want to cancel. Otherwise, your loan will rescind on the 4th day and your funds will now be dispersed.

You will also be contacted by your servicing company to set up a pin number for access to your line of credit if that was an option you chose. This allows quicker access to your funds if you use a pin number access.

You will also receive a great deal of paperwork from financial firms asking you to invest in their programs. The reason they contact you is your note and deed are now a public record, and everyone has access to this information. Financial institutions feel that since you have a possible line of credit you may now have access to funds available for investment purposes. You are not required to respond to these companies. The best policy is that if you want to invest your extra funds, you should contact your Loan Officer and ask for a referral of a good financial planner. All good reverse mortgage loan officers will have very professional folks in this arena that they can refer you to.

Your closing process should take about an hour. If your loan officer has not advised you ahead of time of what the closing process should entail, be sure to call and ask. It is part of a loan officer’s job to make sure you understand the closing paperwork, the process and what is involved. Keep in mind, at any time on a refinance, if your loan officer has not walked you through this process, you should be concerned.

For more reverse mortgage information, call me anytime at 720.641.3482.

AARP Reverse Mortgage Calculator

Call me anytime for additional information about the reverse mortgage calculator … I can be reached at 720.641.3482.

• Benefit from a proven, safe financial tool
  Many homeowners age 62 and older in Colorado and across the nation are enjoying the benefits of a reverse mortgage. It can be a key component of a well-balanced retirement plan, providing seniors with extra cash to live a more fulfilling and independent life. With built-in government safeguards, it’s a financial tool that can be used with confidence.
• Convert home equity into (tax-free) cash
  The basic premise of reverse mortgages is that you can take the equity you’ve built up in your home over the years and convert it into tax-free (consult with your financial advisor to verify) cash for your needs. How much money you’re eligible for depends on a number of factors, including your home’s value, your age, and the specific plan you choose. As a general rule of thumb, the older you are and the higher your home’s appraised value, the more money you may receive.
• Continue to live in and own your own home
  The reverse mortgage does not change your status as a homeowner. It’s still your home, and you can continue to live in it for as long as you want. The reverse mortgage unlocks home equity to provide funds for your life today and in the years to come.
• Use the money any way you want
  After it’s determined how much you are eligible to receive from a reverse home mortgage, it’s up to you how you use it. It’s your money to spend or save as you see fit. You can decide to receive it as cash, a line of credit, a monthly income, or a combination of the options.
• Plan for a secure retirement
  With rising healthcare costs, Medicare and Social Security concerns, and the pressures of living on a fixed income, you may want to consider looking into reverse mortgages. It can help you improve your current financial situation by paying off an existing mortgage or other debt, as well as help you plan for and cover monthly expenses during your retirement. Your reverse mortgage proceeds can give you greater peace of mind, knowing you have cash available for unplanned expenses, as well.

For more information on how a Colorado reverse mortgage might help you and reverse mortgage information on who is getting these loan, please feel free to contact me at 720.641.3482 or send me an email. I’ll be delighted to explain the details of reverse mortgages and how they may apply to your current situation.

Reverse mortgage consultant - Denver, CO

A major fear on most elders minds is the fear of either out-living one’s money or just not having enough to enjoy life in the Golden Years. We all know the issues with Social Security and even if it were to be managed properly, few people can make ends meet with those checks. And it’s a fact that many Boomers are living beyond their means. Debt is at an all time high in this country. The mortgage crisis is impacting many people’s largest asset — their home equity. So for many Boomers, their financial fears are real and justified.

So what is one to do? First of all, we have to manage and virtually eliminate debt. We all need to learn to save more. And, for those who own homes, we need to build equity for the future. This is a biggie. Why? Because with such a plan the fear of out-living your money can be mitigated. Your home equity can be the ticket. It can make the difference.

When the time comes, senior homeowners with equity can tap it with a reverse mortgage. They can either get a lump some, a credit line or monthly income. And they won’t have the burden of making mortgage payments. This income along with Social Security, personal investments and savings can ensure a quality of life that the Boomers have been accustomed to most of their lives.

>> Check out the PBS video on Reverse mortgage loans - Help at Hand

Reverse mortgage consultant - Denver, CO
720.641.3482.