California is a state which is facing some of the worst home foreclosures in the nation (behind only Nevada according to one set of data). This means that a whole lot of people are out of a home, a situation which one woman found herself in recently but managed to prevent through the use of the reverse mortgage loan.
This was an interesting case because the woman was facing foreclosure not only on her own home but was also in danger of losing a rental properties that she had. The rental properties had been in her family for a long time and she didn't want to lose them both for financial and nostalgic reasons. The woman originally looked into a home equity loan but she didn't qualify for it because of a change in the status of her income related to the loss of tenant income at those properties.
Ultimately, she chose the reverse mortgage loan as a means of taking out a lump sum of cash, paying off the money that she owed to lenders and fixing up the rental properties so that they could once again begin taking in income. She was happy with the decision; it's another case of the reverse mortgage working like it should.
The full story is here.
Question of the Day: Is the reverse mortgage a good loan option for people facing foreclosures of their rental properties?
