Reverse Mortgage Texas
October 19, 2009
As we predicted, senior homeowners considering a reverse mortgage found the amount available was severely reduced beginning October 1. The reductions are across the board. Reduction in the amount that can be loaned from a reverse mortgage is also known as reduction in principle limit.
Surprise has been voiced at the action since it seems contrary to the President Obama’s desire and his request to mortgage companies to help people stay in their homes.
Reverse Mortgage Texas® officials point out that more than 80 percent of all reverse mortgages they handle over the years have been used by seniors to pay off their existing mortgages so they may remain in their homes. At times, they have been able to use a reverse mortgage to save a home that was already in the process of foreclosure. By reducing the percentage of equity available to replace their mortgage with reverse mortgages, more seniors may lose their homes or be forced to sell, rather than remain in them.