(My comments follow)
"Life after retirement is never easy, especially if you are facing a financial crunch. It is a very well known fact that after retirement the monthly flow of income stops and this can have ad5ACverse impact on the life of the senior citizen. It goes without saying that money plays a very important part in the life of an individual and no matter whether you are retired or working you need to have a constant flow of money to take care of all your needs. Reverse mortgage is something which can help out the senior citizens who are looking for a constant flow of money even after retirement. It becomes very difficult for an individual to lead a life of dignity and honor if there is lack of money and this can set this just right for you. Reverse mortgage is something that citizens residing in and around California can use for their benefit.
"To be eligible to get money through this, the person must be the owner of a house. "The California reverse mortgage loan is available to any senior citizen above the age of 62 years who owns a house on the equity of the house. The person who takes the reverse mortgage loan will not have to repay the loan amount till the time he decides to sell the house, move out of the house or the borrower passes away. One of the main advantages of this is that this will never be passed on to the heirs if and when that person who takes the loan passes away. The loan amount will be automatically paid off as the person who provides the reverse mortgage loan will become the owner of the house after the house owner passes away. The loan amount will vary based on the equity of the home.
"To be eligible for any reverse mortgage loan in California a person must fulfill certain eligibility criteria. First the person must be a senior citizen, which means that he must be more than 62 years of age. The other primary requirement to get a reverse mortgage loan is that the loan seeker must in possession of a home. Therefore, if you want to take a loan from a broker, you must make sure that you know about the various things that are associated with taking the loan amount. Since you want to take a loan, it will be best for you to be informed about these aspects, so that you do not fall prey to any fraud loan brokers.
"Life is full of both pleasant and unpleasant surprises and that is why we need to be prepared to deal with any eventualities at any time. Taking a California reverse mortgage loan is one way to deal with the financial aspect of any emergence that you may face in your life and especially if you are retired you need the money form this loan to take care of all your day to day needs. You can take the loan money either in lump sum amount or in monthly installments based on your needs.
"Antonio Redford is a legal expert. He gives advice to clients who are looking for expert counsel on reverse mortgage. For more queries about reverse mortgages loan, American reverse mortgage, California reverse mortgage and California reverse mortgage visit www.reverse-mortgage-seniors.com"
Which is all fine and good with the following exceptions.
I wrote in reply to this "I am increasingly worried that this will be the new sub-prime. I see folks reaching for cash from their equity that has been appraised much lower than market value because the home is technically not saleable. The current resident, if they are considering a reverse mortgage just to stay in the house, is not going to use the money for maintenance or improvements but for day-to-day living expenses, which is not what equity should be used for. Lenders will use actuarial tables to determine the worth of the home against the length of life left in the borrower.
"Once the borrower hits the “dire straights” that forces them to consider this option, they often forget that they are indeed entering a loan, that the fees and interest rate are never advertised and are often not competitive with home refinancing or even second mortgages and that the contract will impact what they may have wished to do with the home in the future. The word “lien” is often played down.
"Reverse mortgages are an option of last resort and should only be entered into with legal, financial, and tax counsel and, if at all possible, the help of the homeowner’s family."
