California is one of the largest and most populated states in America. It holds 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 those who have either grown up in the state of California, or who have retired to the state of California, it can be annoying and painful to have to keep paying monthly mortgage bills, especially if you have recently moved into a new home, or are planning to. However, for American citizens who are 62 years of age or older (and this of course includes Californians) then they are available for what is called a reverse mortgage.
Reverse mortgage loans are only available for citizens who are 62 years of age 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 a 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 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 reverse mortgage lender will be someone who 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 reputable state certified Real Estate companies and lending companies. The ideal California reverse mortgage lender will be courteous, straight forward, a good listener, will answer all the applicant's questions, will provide extra information, and will help establish the best reverse mortgage plan for each individual applicant. In addition, a California reverse mortgage lender should have a good reputation with other clients. Finding out if a California reverse mortgage lender has a good reputation is easy. A potential applicant can simply go online, and if the lender is tied to a recognized and reputable organization then there will usually be a lender profile detailing experience, as well as feedback from other clients. |
