Tax, insurance shortfalls push lenders to breaking point
Reverse mortgages were never intended to pay off a first and second mortgage for a homeowner with absolutely no other means to pay their taxes and insurance. Reverses were intended to help seniors tap some of the equity in their homes to make lives more comfortable -- not set them up for failure.
HUD needs to compromise its reverse mortgage guidelines. And, homeowners need to find a way to pay their taxes (some counties offer deferral programs) and insurance if they expect to stay put.
Tom Kelly's book "Cashing In on a Second Home in Central America: How to Buy, Rent and Profit in the World's Bargain Zone" was written with Mitch Creekmore, senior vice president of Stewart International, and Jeff Hornberger, the National Association of Realtors' international market development manager. The book is available in retail stores, on Amazon.com and on tomkelly.com.
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