Why does the CEO of Litton loan Service as guest speaker for the Banks talk how banks must try to help borrowers remain in their homes with forebearence program but can not get his bank to work with my reverse mortgage borrower on a jumbo who has a hardship problem. I have saved many seniors thru their foreclosure problems but never have had such problems as I have with Litton Loan Services.

We see quite a bit of this in FL. In fact, the St. Petersburg Times business section front page had an article this week on just this situation. The senior was in an adjusting ARM and the Lender, Fremont, accepted a short payoff one day before the home was to go to auction.

I have many clients who actively prospect for seniors in “pre-foreclosure”, with or without Option ARM resets pending.

I’ve counseled a few seniors facing foreclosure. All of my situations have included seniors whose children wanted to inherit the home, so I’ve had to heavily emphasize the idea of continuing to make payments on the RM so that the balance doesn’t rise to the level of being unaffordable. And yes, your contact at the AG’s office is outstanding. I laughed out loud when I read that because all of the IL counselors know exactly who you’re talking about!

With the state of the lending industry where it is, I am hoping that in the future, lenders will be more forthright and work with you (us)in these precarious situations. The fees incurred during a foreclosure can be huge. I have worked with a lender (no longer in business) who refused to reduce the fees incurred over several months. This accumulation of fees is what put the borrower over the top for a reverse mortgage. It would have saved her home, as well as the emotional turmoil throughout the process.

Great comments and feedback from your readers!

Yes thier are banks that are doing short payoffs, i recently saved a client 80,000 and got them into one fixed loan….

I have had several reverse mortgages and thought they were great. I was put in one that turned into a nightmare. It was a new program with Virtual Bank in Florida. I was not informed it did not have government insurance, and also told that what was left would earn a certain amount of interest. I left l/2 of it in there. Now that I want it, they informed me that there might not be any money there. They also are always gone from their desk, and I have talked only a few times. They are rude, and now sent a letter saying we should get a new loan with another mortgage co., and the numbers do not work for me as the value has gone down. I noticed that there was a clause that said if the value of the home fell below what was owed, then they could decide if they wanted to give the rest of the money. I now have been informed to get a new appraisal for a new loan, although I have informed the new company that the numbers do not work for me any more for a new one. I was not counseled as I can recall about this being a non-insured government loan, which means I will probably not get the rest of the money. My husband just died and I now have this stress on me, and have counted on the money being there. They did not even give me over the last two months a statement with the available funds on it, as it was left blank. When I inquired about that, they said they changed their forms. This is what puts a bad light on this type of loan. People who are protecting themselves rather than the seniors. My loan is #33, so it came and went very quickly, and now I am left hung out to dry.

I am looking for information to help a senior obtain a short payoff on an option arm loan using reverse mortgage proceeds. The bank is GMAC.

Thanks

my mom had a reverse loan on her house. She past way, and now we are looking for someone to pay off the loan, and get repaid through montly installments. Please help me save my house.

I am in dire need of assistance in applying a RM. I’m $18,000 short to close. ($8,000 toward 1st mortgage to Countrywide and $10,000 on 2nd mortgage w/GMAC). Pls contact me if you have experience in a short payoff using a reverse mortgage. I’m turning 65 next month, layed off 8 months ago, I’m not yet in arrears (but I can’t make this months mortgage). Do I or do I not pay this month’s mortgage? Do I have to fall into arrears to even get the mortgage company [Countrywide] to be open to negotiate??? PLS HELP. Not only am I going nuts, but I’m driving everyone else nuts as well. Thanks in advance and any and all advice or assistance.

My grandmother got a reverse mortgage, and thereafter passed away. Grandma’s will left the house in trust to my mother. It has been one year since my grandmother passed away and my mother does not qualify for a loan as she only receives minimal Social Security of about $450 per month. She tried to get a reverse mortgage herself but does not qualify because of the housing crash left no equity in the home. Original apprasied at $275,000 the market now values the home at $120,000. The amount due to Freedom Financial is $136,000. What we due to save her home? Can anyone help.