Over 62? A Reverse Mortgage Could Solve Your Debt Problem You might not realize it, but if you have a home with no mortgage or with a low outstanding amount, you can releasethe equity and use it for anything you like - and it won't cost you a penny until the time comes to sell up. Senior citizens in the USAwho own their own home have a great asset when it comes to solving a debt problem. If you fulfil the conditions, which are not onerous, you could find that you not only have no more debts, but have also acquired a new source of income! And there's no need to worry if you have a poor credit rating, becausethat isn't even relevant. Reverse mortgagesre regulated by the Government, so they are probably the safest way to raise money on the market. The regulations cover both the fees and the redemption price. You or your heirs can't be made to pay back more than the home is worth at the time of the sale, even if you have received more than this either by lump sum, monthly income or both. To qualify for a reverse mortgage backed by the HECM,all the owners of the house must be 62 years of age or older, and you must either own your home outright or pay off the remainder of the existing mortgage from the proceeds of the reverse mortgage on completion. There's also a mandatory requirement of HECMcounselling - this is a Government regulation and is designed to protect you. Once the reverse mortgage comes into effect, you are required to keep the house in good order, that is, you need to make sure all necessary maintenance is carried out as and when necessary, or you will be in breach of contract. You can receive money basically in two ways: either as a line of credit against which you can draw at will up to the agreed maximum, or a monthly income. You can also have a combined line of credit and reduced monthly income, which is the option you would probably go for if you need to pay off some of an existing mortgage. The line of credit is fixed and cannot be reduced by the lender, unlike similar products which are not Government-regulated. Obviously, there are disadvantagesas well as advantagesto a reverse mortgage. The main one is that if you move to another property or a care home, the reverse mortgage becomes due for repayment, but it's fairly evident that it has to be due at some point, isn't it? Another point to watch is this: If you are a couple, and one of you is quite a bit older than the other, you might be offered a reverse mortgage based only on the older person's age. This may be tempting, becausethe monthly amount you would receive may be quite a bit higher. The problem is that, if you did choose to do this and the older person were to die first (which is quite likely), his or her spousewould be left with nowhere to live, becausethe reverse mortgage would become due immediately. So if you are presented with this choice, it's better to go for a reverse mortgage based on your joint lives, even though it may mean getting a little less each month.
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Can a Debt Management Plan Settle Your Debts? What is the first thing come to your mind when you are struggling for debts settlement? Some might think of debt management company as they offer attractive promises in assisting you to settle the debts in a reduced amount. What do you understand of debt management and how does it work? Debt management plan is a form of debt consolidation. Basically it pile and sum up all your debts into one lump sum and by getting an agreement with your creditor on the repayment term, a default payment will be set up to pay your bills. You can either negotiate the repayment term with your creditors yourself or you could hire the assistance from a 3rd party services. Normally, the debt collectors will accepting lower monthly payments only if you can repay clear off the debts. However, some creditors might not accept this plan and to file a lawsuit against you. The drawback of this management is this type of plan is an informal arrangement between you and your creditors and they have no obligation to accept this plan, thus in other words, this plan might not work at all. Have you ever think of the cost of hiring a 3rd party service? How much do you need to incur to hire a debt management professional? Usually, this type of company will need you to pay an upfront fee in order for them to assist you with the plan and to call your creditors. On every monthly payment to your creditors, they might retrieve a certain percentage for their management fees. So, basically, you still owe the same amount of debts with your creditors and at the same time, you are incurring an extra cost to repay your debts! Does this sound a nice helping to you? If things come to the worst, you might sink in deeper debts without any sign! Thus, if you want to choose the service from a debt consolidation company, make sure you understand the outgoing of your money, how does it flow, who gets the money and how much you have paid and how much is the balance if debts. One more thing to note here, since this is an informal arrangement, your creditors might pull out of this plan and, what will happen next? Do you want to find out more about debt problem? Debt management plan is a type of debt solution, however, at the same time, you will earn a bad credit ratings. You will face difficulty in applying for new credit cards or even applying for loan in future. In conclusion, a systematic plan is essential in settling you debts, and before you sign up with debt management company, think twice!
Debt Management Plan - Solution For Financial Problems Debt management plan (DMP) is a voluntary agreement which do not legally bind on creditors. In this, creditors deposit 15% fee to their fixed amount to Debt Management Company on a pro rata basis. Management plan prepare a budget with their documentary report which include pro rata such as income tax, credit card, etc. and create a good debt settlement of money. By this, you can pay your money in each month. In this, the debt advisor suggest you a plan by considering your debts or financial records and will make you debt free. The Debt Management Plan arranges many companies which provide good facilities for a debtor or creditor to make zero debt. With their facilities you can pay your amount on a particular date. There are so many advantages with Debt Management Plan. Debts Management Company provides fast services which saves your time and make you debt free. Its services provide you many programs like debt consolidation, debt settlement, debt relief, etc. It let you makes single payment instead of individual payments. DMP also have many disadvantages. Debt Management Company cut 15% fee of your payment. Your refundable money can take long time, etc. It is very useful for those that have larger amount of debt. To make a good plan, always consult with a qualified debt adviser who will provide you good debt solutions. Debt Management Plan helps in long term situation and makes a debt free or debt relief or zero debt life. It helps to manage your uncontrolled debts and provide you a frame work of plans. By this, you can reduce your debt with in a few years and can increase your financial value status. It also provides many solutions on personal loans, bankruptcy, credit card, and etc. It gives you stability in your financial records and makes an effective debt-free life. Vicky Talreja is a debt management expert. His articles provide useful and logical information for people struggling with debt. Please visit here for more information on debt management plan , debt management program and debt management UK. Check out more about Debt Problem