A decade after homeowners used a soaring real-estate market to go on a borrowing binge against their own properties; many are falling behind on payments threatening to leave banks on the hook for hundreds of millions of dollars. And forcing foreclosure on some home owners.
Borrowers who took out Home equity lines of credit, or Helocks are now struggling to make their much higher monthly payment. The standard terms for most Helocks are for a period of ten years the monthly payment is interest only. After ten years the Equity Line Credit is closed. The principle balance plus interest is converted to a fully amortized 20 year loan. Monthly payments will rise by hundreds or even thousands of dollars.
Many of these homeowners are retired seniors with good credit but with less income now that they are retired. Some seniors will not be able to make the new larger payment; consequently they will place their home up for sale to settle the debt. And become very unhappy about that for sure.
Many homeowners have high value homes with substantial equity. A JUMBO reverse could be a financial solution for paying off their Home Equity Line of Credit and in many cases receiving additional revere mortgage dollars for better retirement living.
Thank you for visiting our JUMBO reverse mortgage site for better retirement financial solutions.