A Minnesota Veteran came to me seeking a VA loan or any solution that would save him from a foreclosure which had already begun. His situation did not look good. It appeared at first glance that all was lost. Our veteran Dan(not his real name) had a bad turn of luck. As a self employed carpenter he had been injured and is unable to work. There was no disability insurance. At 61 years old his prospects of starting a new career were dim. The bank had already moved to sell his property and recoup some of their loss. The Sheriff’s sale had occurred the previous month. Here in Minnesota once the sheriff’s sale takes place a homeowner generally has 6 months to come up with the money or move. This is called the redemption period. He had just a few months left in his redemption period before the bank or other new owner would lock him out. He could sell his home but in this market how fast might that happen? How could I possibly qualify Dan for a mortgage since he had no job, no income and was late on his current mortgage? Truth is, I couldn’t. At least I couldn’t qualify Dan for a VA or conventional FHA loan. But as we talked he revealed a small piece of information that changed everything. Dan was about to have a birthday.
Our veteran had lived in his home for years and did have considerable equity. In foreclosure that means he would lose all he had worked for. Obviously no bank would loan him money on that equity because he couldn’t qualify for a 2nd mortgage. Heck, he wasn’t able to pay his first mortgage, why would a bank loan him money on a second? But there was a way to save the home and we would began that process immediately. Dan was one month away from turning 62 years old. That’s the magic age for a reverse mortgage. This is a mortgage which allows a homeowner to tap the equity they’ve accumulated and stay in their home forever. Reverse mortgage lenders don’t care about credit scores or income, they don’t care about job prospects. It was obviously the perfect solution for Dan. A month after our conversation and after his 62nd birthday we submitted the application. It was quickly approved.
Dan got enough money to pay off his 1st mortgage, pay off his back taxes and even enough to put cash in the bank. His home was saved, he has no monthly mortgage payments and no creditors knocking on his door. In addition he is now of the age where he can collect monthly social security checks. With no monthly mortgage payments those checks go a lot further every month.
Day after day we work to provide needed solutions to clients. Many times I hear “thank you” from clients whose needs have been met by my efforts. But there is nothing more gratifying than knowing that once in a while not only do we improve a client’s financial condition but we actually change lives.
*This is not an offer to lend. 
Obama Refinance Plan For San Jose Homeowners AnnouncedHome Affordable Refinance Program Update Harp 2 Bay Area San Francisco California March 2012 Guidelines for Purchasing a 3 to 4 Unit Property with FHA Financing in Alameda, CA8 Year Fixed to 30 Year Fixed. You Can Choose Your Loan Term In San Jose
