California is one of the largest and most populated states in America. California holds within its borders the second largest city in the United States, which is L.A, and the state's myriad of interesting cities, rich history, beautiful landscapes, and easy access to the bold blue Pacific Ocean makes it one of the most sought after locations for tourists. For people who have either grown up in the state of California, or for people who have retired to the state of California, it can be annoying and rather painful to have to keep paying monthly mortgage bills, especially if a person has recently moved into a new home, or is planning to move into a new home. However, for American citizens who are 62 years of age or older (and this of course includes California) they are available for what is called a reverse mortgage.
Reverse mortgage loans are only available for citizens who are 62 years or older. These loans differ from regular mortgage loans in that the homeowner does not pay monthly fees, but instead is paid by the lender. The lender pays in a lump sum, monthly payment, by periodic credit line, or a combination thereof directly to the homeowner, or "borrower". Citizens who obtain a reverse mortgage are not at risk of loosing their house, and are able to do whatever they please with the money being received from the lender. The lender's security is based upon the homeowner's house itself. If the homeowner becomes deceased, is absent from the house for more than 6 to 12 months (or in the care of someone else such as family or a nurses at a retirement home at another location), or if the homeowner decides to sell his or her house, then the lender retains the proceeds of the housing sale. The proceeds from the housing sale are usually effective in paying off the reverse mortgage loans made to the previous homeowner. If the house sells for more money than the loan amount due, then the current borrower or heir(s) receives the difference. In cases where the house sells for less money than the loan amount due, then the insurance company usually pays the difference.
For people setting out to apply for a reverse mortgage in the state of California, it is important to be picky. The best California based lender for mortgage reverse loans will be a person what is affiliated with a nationally recognized lending company such as Wells Fargo, Fannie Mae, FHA, or Financial Freedom Plan. There are also a number of state certified Real Estate companies and lending companies that are reputable. The ideal California lender specializing in mortgage reverse mortgage loans will be courteous, straight forward, a good listener, will answer all questions, will provide extra information, and will help establish the best reverse mortgage plan for each individual. In addition, a California lender specializing in mortgage reverse mortgage loans should have a good reputation with other people. Finding out if a California lender specializing in mortgage reverse mortgage loans has a good reputation is easy. Most simply a person can go online, and if the lender is tied to a recognized and reputable organization then there will usually be a lender profile detailing the lender's experience, as well as feedback from other people who have been that lender's previous/current client(s). |
