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Foreclosures hurt seniors' chance of obtaining reverse mortgages 2010-04-30 Many seniors who have paid off or owe very little on their homes look to reverse mortgages as a way to secure additional retirement income. However, the current economy may make securing a reverse mortgage more difficult, according to the Stock Markets Review. Many investors are attempting to make a fast dollar by investing in foreclosed real estate at a low price and selling it at a higher price. This rarely occurs when market competition for sales is too competitive, reports Stock Markets Review. Instead, another cycle of distressed home ownership occurs for those who purchase foreclosed property. Buyers typically purchase the properties at a price higher than average market costs and find they are unable to sell the home, according to Stock Market Review, a financial news site. "This is both a crisis and an opportunity," Enterprise Community Partners senior vice president Rafael Cestero told the Wall Street Journal. Foreclosure activity tends to drive home values down, making it difficult for seniors interested in securing a reverse mortgage to receive a good price for their home. Reverse mortgages can be a great way to pay off bills or supplement retirement income. Seniors should contact a reverse mortgage service provider to discuss the financial details of securing the loan before ruling it out.  |
