The top 9 most common reverse mortgage myths include:

Myth: If I take out a reverse mortgage the lender will own my home.
Fact: False. Homeowners still retain title and ownership to their homes during the life of the loan, and can choose to sell the home at any time. As long as the house is maintained and property taxes and homeowners insurance are paid, the loan cannot be called due.

Myth: My children will be responsible for the repayment of the loan.
Fact: False. Reverse mortgages are non-recourse loans. That means, if the property is sold to pay-off the loan when the homeowner passes away or decides to leave the home for other reasons, there will be no mortgage debt for the family and heirs to repay. The maximum amount owed is the current market value of the house. If the homeowner’s heirs want to keep the home, they would pay the balance in-full to the reverse mortgage lender.

Myth: I can’t get a reverse mortgage if I have an existing mortgage.
Fact: False. With enough equity, you may be able to pay off your existing mortgage or other debt with the reverse mortgage. The reverse mortgage must be in a first lien position, so any existing mortgage must be paid off. Seniors who take out reverse mortgages are free to do anything they want with their reverse mortgage proceeds. Paying off an existing mortgage is the number one reason most seniors take out a reverse mortgage.

Myth: Only low-income seniors get reverse mortgages.
Fact: False. Although some seniors may have a greater need than others for the monthly proceeds or lump sum funds reverse mortgages offer, most simply prefer to be free of monthly mortgage payments. Without monthly mortgage payments, many homeowners find they can maintain their existing quality of life and build their savings to help with future expenses. A growing number of people who have no immediate need are taking out these loans so that they have a financial cushion for future expenses.

Myth: If I outlive my life expectancy, the lender will evict me.
Fact: False. Reverse mortgage lenders put no time limit on how long seniors can stay in their homes. Since homeowners still own the property, lenders cannot evict them, provided they follow the program guidelines.

Myth: There are no objective advisors available to seniors trying to decide if a reverse mortgage suits their needs.
Fact: False. Borrowers are required to work with independent, third party counselors approved by the U.S. Department of Housing and Urban Development (HUD) in their local communities. This educational session helps them make the right decision for their unique situations.

Myth: There are restrictions on how reverse mortgage proceeds may be used.
Fact: False. There are no restrictions. The cash proceeds from the reverse mortgage can be used for virtually any purpose and borrowers should be cautious of lenders attempting to cross sell other products. Many seniors have used reverse mortgages to pay off debt, help their kids, make ends meet or to have a financial reserve.

Myth: Reverse mortgage lenders take advantage of seniors.
Fact: False. Seniors who have been victims of reverse mortgage lending schemes are extreme exceptions and typically victims of unsavory lenders. As a consumer, you should only work with lenders who are Better Business Bureau and National Reverse Mortgage Lenders Association (NRMLA) members and adhere to those organizations’ strict Code of Ethics and Standards for Trust.

Myth: I’ve heard I won’t qualify for a reverse mortgage because of my limited income.
Fact: Unlike a traditional mortgage where mortgage payments must be made each month, a reverse mortgage pays you. Because of this, many seniors who do not qualify for traditional financing are eligible for a reverse mortgage.
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Article printed from RISMedia: http://rismedia.com

Feeling like there is no other option but foreclosure can be an overwhelming experience. Know that you are not alone. Thousands of homeowners in the United States are facing the same challenges as you every single day. Now more than ever before there are solutions.

If you are a distressed homeonwer in the Nashville, Tennessee area, you have come to the right place to find your solution. Cities include Madison, Joelton, Inglewood, Old Hickory, Goodlettsville and other surrounding areas.

With many homeowners facing difficult decisions, it is imperative to have the proper guidance from a qualified Realtor, who specializes in Foreclosure solutions and short sales. A real estate expert is essential to a sucessful short sale and avoiding foreclosure.

When looking for a short sale expert, short sale agent, foreclosure agent or experienced short sale Realtor, in and around Nashville, Tennessee, Kim Blanton with Crye-Leike Realtors can assist you.

If you would like more information, or have confidential questions, please contact Kim Blanton at your earliest convenience to discuss your options.

You will be provided with information about how to avoid foreclosure, explain the effects it can have on you and your family, and offer other options that may be available to you.

Please know that all communication will be strictly confidential.

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If you or someone you know is trying to find help selling their home using a short sale, or purchase a short sale home in the northern Middle Tennessee area, you might want to stay updated on Short Sale Information on Facebook.

Goodlettsville Short Sales is constantly updating information for buyers and sellers on Short Sales in the northern Middle Tennessee area.

There are tips, articles and blog posts to give you the very best information available. No need to search the internet for short sale help, just search Goodlettsville Short Sales on Facebook and sign up for continuing updates.

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For more information on buying and selling homes in the northern Middle Tennessee area including Goodlettsville, Hendersonville, White House and Springfield

Warning Signs of Foreclosure:

• Credit card debt out of control. (Maxed out cards). Paying the minimum amount due
• Paying for necessities with credit cards (groceries, utilities, etc)
• Cannot meet monthly financial obligations (choosing which bills to pay)
• Borrowing from friends and family
• Loss of employment, or reduction in hours or wages
• Major illness which can cause loss of work and an increase in health expenses
• Divorce, separation or other traumatic family or personal situations
• Death of a spouse or significant other
• Cannot pay the new Adjusted Payment on the ARM mortgage loan
• Major unbudgeted maintenance expense
• Excessive debt is the number-one cause of financial collapse and foreclosure.

If you detect any of these warnings, early intervention could help save your home. Contact Kim Blanton today at info@shortsalesbykimblanton.com

Learn how to Avoid Foreclosure in Goodlettsville, Tennessee

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1. FHA loans are not only for lower-income borrowers. FHA loans are available to everyone. There is no maximum income restriction associated with FHA loans, but borrowers do need to substantiate income and assets by submitting proper documentation. This requirement ensures that borrowers are well-vetted and truly able to afford their future homes. IF you are searching for home loans in Goodlettsville Tennesse, an FHA loan may be your answer.

2. FHA loans are not only for first-time buyers. Many people believe FHA loans are available only to first-time home buyers, but this is not the case. Whether borrowers are making their first home purchase or their fifth, they can look to FHA loans as a home financing option. Search for a mortgage loan officer than can assist you in Goodlettsville.

3. FHA loans are not just small loans; in fact, loan amounts can be as high as almost $800,000. The government recently raised the maximum loan amount from its original cap of $362,790 to $793,750 as a way to help stabilize the housing market. The amount a buyer can borrow varies from county to county though.

4. FHA loans are not affiliated with the section 8 housing program. While both programs are administered by the U.S. Department of Housing and Urban Development (HUD), FHA loans have nothing to do with low-income subsidized housing. FHA loans are simply mortgages insured by FHA. This insurance provided by the federal government allows lenders to lend more freely by assuring them that they will be repaid in the event of default. Most traditional lenders, including Wells Fargo & Co., JP Morgan Chase and Citigroup are able to provide FHA loans to their customers.

5. FHA loans are often more affordable than conventional loans. While FHA loans typically offer the same interest rates as other loans, borrowers benefit from a much lower down payment of as low as 3.5%.

6. FHA-approved condo developments are more desirable to buyers. With 87% of home buyers indicating that they plan to use FHA loans, condo associations that are not FHA approved are missing out on a significant pool of prospective buyers. Under rules in place since February 2010, an entire condominium development must now apply to HUD and be granted FHA approval before a buyer can purchase a unit in an association with an FHA loan or before an existing unit owner can refinance into an FHA loan.

Due to the general unwillingness of today’s lenders to extend credit with respect to conventional loans, many borrowers find that FHA is their best bet. Lenders don’t mind lending when the federal government (FHA) assures them of repayment.

Homeowners associations (HOAs) should note that although FHA-insured mortgages might be easier to obtain, they are not “risky” loans, due in large part to the strict “full documentation” requirements placed on borrowers. Individual buyers or sellers can initiate the approval process or current owners can encourage their HOA to apply.

7. FHA loans are assumable. In addition to lower down-payment and credit-qualifying requirements as compared to conventional loans, FHA loans are assumable. This means that when a seller with an FHA loan sells his or her property, the loan and its financing terms (interest rate) can be transferred to the new buyer. This unique feature will certainly make a property more valuable in times of rising interest rates.

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See more about purchasing homes in Goodlettsville and Hendersonville, Tennessee at http://kimblanton.com

Many buyers don’t understand that a 1 percent jump in interest rates on a 30 year loan, nullifies a 10 percent drop in home prices. This relationship between interest rates and home pricing remains essentially the same at any price point.

Even a slight incrrease in mortgage interest rates can offset a significant drop in home prices. There is little to gain in this scenario and much to lose if home prices rebound or rates jump.
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Data provided from the book Shift by Gary Keller

The 295,348 permanent modifications amount to about a quarter of the 1.2 million trial modifications started under the program, which began last year.

During the trial, banks and mortgage servicers reduced a homeowner’s monthly payment for 90 days, with a median reduction of about $500. If the homeowner made the payments and submitted additional paperwork, the servicer made the modification permanent and became eligible for cash incentives from the government.

Servicers have canceled a total of 277,640 trial modifications through April, according to the Treasury Department. That was up sharply from the 155,173 modifications that had been canceled through March. In addition, 3,744 people have had their permanent modifications canceled.

The increased cancellations largely were caused by many servicers granting temporary modifications without verifying the homeowners’ income. Starting June 1, 2010, the program will require all modifications be made based on verified income statements, Treasury officials said.

The $75 billion program has been criticized for moving too slowly to modify loans to create lower payments for 3-4 million people by the end of 2012. In December, the Obama administration began pushing mortgage services to move more quickly to convert eligible trial modifications to permanent ones.

Since then, the number of permanent modifications has nearly tripled. Large servicers such as Bank of America Corp., JPMorgan Chase & Co., Wells Fargo & Co. and Citigroup Inc., which had been lagging behind smaller firms, have improved their performance.

Those large companies account for more than half of the active trial and permanent modifications. Still, they have turned only about 25% of their temporary modifications into permanent ones, compared with 50% or higher for some other lenders, such as GMAC and U.S. Bancorp.

Many homeowners and housing advocates have complained about bureaucratic runarounds by mortgage servicers in trying to get their mortgages modified. Treasury officials said they planned to collect new data about the performance of companies and release it beginning in July.

“The number of homeowners receiving significant relief through a mortgage modification continues to rise,” said Phyllis Caldwell, head of the Treasury’s Homeownership Preservation Office. “Our focus now is on improving the homeowner experience and holding servicers accountable for their performance.”

The new data will focus on the eight largest mortgage servicers. It will include the average time from the start of a trial modification to a permanent modification, how long it takes servicers to answer phone calls from homeowners and the time it takes them to respond to homeowner problems that come from housing counselors, attorneys and other third parties.

(c) 2010, Los Angeles Times.

Distributed by McClatchy-Tribune Information Services.

If you or someone you know is trying to avoid foreclosure in the Hendersonville or Goodlettsville area of Tennessee, you might want to stay updated on Facebook.

Goodlettsville Avoid Foreclosure is constantly updating information on how to avoid foreclosure in the northern Middle Tennessee area.

There are tips, articles and blog posts to give you the very best information available. No need to search the internet for foreclosure options, just search Goodlettsville Avoid Foreclosure on Facebook and sign up for continuing updates.

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Preserving The American Dream Is Realtor’s Focus In 2010

Crye-Leike Goodlettsville Realtor Kim Blanton Completes Short Sale & Foreclosure Training To Help Preserve Home Ownership And Aide Struggling Families

GOODLETTSVILLE, TN., - As more and more real estate sales involve buyers and sellers dealing with properties heading for foreclosure or properties that have already been foreclosed on by the bank - many licensed Realtors have been forced to ‘change their game’ and approach in order to adapt to this new ‘traditional’ real estate transaction. See the full press release:

Learn how to Avoid Foreclosure in Goodlettsville, Tennessee

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When picking a real estate agent in the Goodlettsville and northern Middle Tennessee area, look for one who is also a Realtor®.

A Realtor® is a member of the NATIONAL ASSOCIATION OF REALTORS®, a real estate trade association, and all members agree to abide by a 17 article Code of Ethics.

1. A Realtor® Can Save You Time When you begin your search, it is always good to know what your borrowing power is. By doing so, you won’t waste precious time looking at homes that are over or below your price range. A Realtor® can get you starter in the buying process by helping you determine your buying power; your financial reserves and your borrowing capacity. A Realtor® can refer you to lenders that are best qualified to meet your financial needs.

2. A Realtor® knows the Goodlettsville, Tennessee area.   Once you know how much you can and want to invest in a new home, the next step is to determine where you want to live. If you’re unfamiliar with the geographic area, the schools and other pertinent information about the Goodlettsville  and northern Middle Tennessee areas, a Realtor® can help you narrow and focus your search. A Realtor® has access to information about schools, recreation, taxes, utilities, zoning and other specific details that are important in your home buying decisions.

3. A Goodlettsville Realtor® has access to the largest number of available properties A Realtor® has the ability to identify and show you the largest number of homes that most closely match your price, size and location criteria for your new home.

4. A Realtor® Has the Experience to Ease You Through the Buying Process Once you have found your perfect home, there are still a lot of details to take care of. Your Realtor® can help you write the Purchase Agreement, arrange for appropriate inspections (if necessary), and assist you with any contingencies and help with finance arrangements. In the event that you build, your Realtor® will assist in the color and finishing sessions, and monitor the entire construction process. When it’s time to close, your Realtor® will let you know what to expect and take you through the final walk-through of your new home.

5. A Realtor® knows the local closing or settlement process closings or settlements, as it is known in some parts of the country vary from state to state and sometimes from region to region. Every area has its own unique customs. In some areas, the title or Escrow Company handles the whole process. In other parts of the country, an attorney does everything. Your Realtor® knows how it is handled in your area and will guide you through the process and make sure all goes smoothly.

While buying a Goodlettsville area home is very exciting and rewarding, it can also be a stressful time. It is always good to get help from someone who is knowledgeable of the business. Your Realtor® is there to help you.

The best news is that using a  Goodlettsville, Tennessee Realtor® as your Buyer’s Agent’s is a FREE service to the prospective buyer. Commissions are paid by the SELLERS in the form of previously negotiated co-broker and listing agreements.

If you want more information on buying or selling a home, learn more about Goodlettsville TN Real Estate