Canadian Conference on Elder Law

I got an email from one of my Canadian readers who wanted me to plug the Canadian Conference on Elder Law. It looks like it will be helpful event and is also providing presentations on my two favorite subjects, life settlements and reverse mortgages!

I don't have web address or actual location information, but when I recieve that I will post it here.

2005-10-29 Vancouver Canada

The Canadian Conference on Elder Law is a public conference aimed at educating professional groups, lawyers, community members, advocates, health specialists, researchers and interested individuals on important legal issues relating to older adults. The goal of the conference is to promote contribution and access to a knowledge base pertaining to legal issues affecting older adults, with a view to reducing vulnerability, social isolation and abuse.

Presentations will consider such issues as elder abuse, aging with challenges, assisted living / supportive housing, aging in place, regulation of long term care facilities, private care agreements, consent, comparative analysis of interjurisdictional elder law issues, viatical / seniors' settlements, wills, estates, trusts, and reverse mortgages.

Till next time, have a blessed day..

Reverse Mortgage Changing Interest Rates

If you were not aware, the Reverse Mortgage products are adjustable interest rates. They are either monthly or annually adjustable.

An affliate site of ours, Reverse Mortgage Lead, publishes the weekly changes in the interest rates. The rates are updated on Tuesday morning at after 12:00 am. They are usually published to the website sometime in the morning or early afternoon.

These might be helpful to some people.

If you have questions about a reverse mortgage, please email us or call us toll free at 1-888-973-8377.

Till next time, have a blessed day...

Viatical Settlement Lawyer

When you’re terminally ill, it can be very tempting to sell your life insurance policy proceeds to fund medical treatments and support your family. But viatical settlements are complicated, and should be thoroughly investigated.

In a viatical settlement the consumer (called a “viator”) sells his or her life insurance policy to a viatical settlement company (called a “provider”) for a lump sum payment that is a percentage of the policy’s face value. The viatical provider then becomes the beneficiary of the policy, and is responsible for making the premium payments. When the viator dies, the viatical provider collects the full face value of the policy.

Viatical settlements are regulated by each state’s insurance departments (link). State regulations and laws vary widely (link), but most require viatical brokers and providers to be licensed. A broker will “shop” your policy to several potential providers, looking for the best deal.

The value of an individual insurance policy is based on the:

* Age and medical condition of the viator
* Financial rating of the insurance company
* Type of insurance policy
* Amount of the premiums
* How often premiums must be paid
* Overall economic conditions

The Health Insurance Portability and Accountability Act (“HIPAA”) makes the proceeds of viatical settlements for the terminally or chronically ill tax-free up to the amount paid in premiums during the life of the policy. The Act defines “terminally ill” as having been “diagnosed by a certified physician to have a life expectancy of under 24 months.” You’re considered “chronically ill” under the Act if you are “permanently and severely disabled by an illness.”

Reverse mortgage

Reverse mortgage

Q: I’m hoping you can help me understand reverse mortgages. My mom is in her early 60s and has virtually no income because of a sluggish job market in the area where she lives.

A: Reverse mortgages are available only to homeowners 62 or older.

This type of loan allows seniors to convert equity in their home into tax-free cash, without selling, giving up title or having to make a mortgage payment.

A reverse mortgage doesn’t have to be repaid until the homeowner moves, sells or dies.

Borrowers can take the loan as a line of credit, a lump-sum payment, fixed monthly payments or a combination.

The downside of this loan product is the high fees. To get an estimate of the fees you may be charged, try the reverse mortgage calculator at the National Reverse Mortgage Lenders Association’s Web site:

www.reversemortgage.org

Before you contact a lender about a reverse mortgage, visit AARP’s Web site on the topic

www.aarp.org/revmort

On the site you can download for free AARP’s booklet “Home Made Money: A Consumer’s Guide to Reverse Mortgages.” To order a free copy of the guide by telephone, call (800) 209-8085.

Speak with a Reverse Mortgage Specialist Today. Call toll free 1-888-973-8377.

Market Potential for LIfe Settlements

Financial professionals today have an exceptional opportunity in the life settlement market. You now have the ability to financially assist your clients that has never before been available. A life settlement presents insured individuals with a more desirable alternative to surrendering a life policy or letting it lapse.

The fastest growing segment of the countries population is the aging baby boomers. Currently there is approximately $492 billion (1) of life insurance in force for people over 65 years of age. One quarter or $108 billion is available for life settlements. Their financial and estate planning needs are constantly changing. The demand for more flexible financial tools is evident and quickly increasing. A life settlement can help you meet these demands with great monetary benefits to you and your clients. This represents a unique opportunity for today's financial planners, estate planners, life agents and other financial professionals.

Start promoting life settlements to your clients today! Contact us or fill out the free agent marketing kit request form.

Source: Conning Insurance Research and Publications

Viatical Settlement Definitions

Viator: A person whose life is insured by a life insurance contract or certificate who wishes to sell or has sold the beneficial interest in his or her life insurance contract for a lump sum.

Viatical Settlement Contract: An agreement between a viator and a viatical settlement provider or company [see below] to transfer the life insurance death benefit of the viator in exchange for money, typically for an amount of money less than the total death benefit of the policy.

Viatical Settlement Provider / Viatical Settlement Company: A person or company that buys death benefits of life insurance policies from individuals for less than the expected death benefits, for the purpose of reselling them or who arranges for such purchases. Viatical settlement providers then sell the death benefits, at marked-up prices, as investments to individuals who expect to receive profits upon the deaths of the viators.

More Life Settlement and Viatical Related Definitions

Reverse mortgage can be attractive

Q: A while back you wrote about a senior’s finances, and I was disappointed that you didn’t mention reverse mortgages. We took 80 percent of the equity out of our home with a federally backed reverse mortgage and are enjoying extra income from the “lazy money” in our paid-off home. There are no payments, and the interest and fees are paid when the home is finally sold. Your column was worded as if you weren’t familiar with reverse mortgages. Are we missing something?

Joe N., Wilmington

A: I am fully aware of reverse mortgages, and I believe they can play a vital role in a retiree’s finances. In fact, I believe that over the next decade they will become a common financial tool for retirement planning, so much so that I have personally invested in a company that specializes in reverse mortgages.

Like most financial products, reverse mortgages are neither good nor bad; it depends on how they are used. For some people, a reverse mortgage can be a lifesaver by providing monthly income to pay for basic necessities, which is a good thing. For others, a reverse mortgage can be a way for retirees to spend money in their 60s that may be necessary for them in their 80s. Used this way, a reverse mortgage may be a bad thing.

Reverse mortgages are a way for retirees 62 and older to tap into the equity in their home to increase their standard of living. Unlike a traditional mortgage or home equity loan, there are no monthly payments required. Interest accrues on the loan and is due when the home is either sold or when the occupants die. Start-up costs are steep, but the long-term benefits can be attractive.

Source: Scott Hanson, Delaware Online

If you have questions about a reverse mortgage, please call 1-888-973-8377 to speak with a reverse mortgage specialist today.

Disturbing Use of Reverse Mortages May Jeopardize Home Equity

Kelly Green reports in the Wall Street Journal that many seniors are starting to use reverse mortgages to finance anything from vacations to jet skis. As Kelly points out, the danger is that all the equity in the home will be tapped for non-essential needs if the owner's health declines and they need funds to pay for in-home care or home modifications that would enable them to remain independent at home. Legally, of course, you can use a reverse mortgage for anything you like. There are no laws or rules that require you to use the money for something important. The concern raised in this story is that some people may not be looking far enough ahead (or may be fooling themselves about the likelihood that they may have health problems in the future.)

View the story on the Wall Street Journal Web Site.

She makes some good points in ther article, but this article does show the freedom of your reverse mortgage proceeds. Some consumers want to enjoy themselves and take a vacation of a life time, others want to invest in a long term care policy. It is totally up to them.

Revese Mortgage Client Story

Received an email who said described her friends story regarding her reverse mortgage.

Janey loves her home, close local friends and wonderful neighbors in her neighborhood. But she was facing a decision because her savings had depleted and she was spending more than her monthly income, mainly because of payments she was making on an existing mortgage. She was considering selling her highly appreciated home and moving to a retirement community out of the area. It was upsetting for her to think of leaving her home where she was happy and comfortable. Just the thought of packing up her belongings was upsetting. Janey’s grandson did some research and presented her with options that included a reverse mortgage. After carefully looking at all of her options, she decided to get a reverse mortgage and was able to pay off her regular mortgage and eliminate mortgage payments completely. An added bonus was a lower interest rate on the new reverse mortgage loan. There were additional funds available to take care of much needed repairs on her home. Janey is not worrying about how to pay the bills now and feels proud of what she has done to protect her most valuable asset, her home.

To see how a reverse mortgage could benefit you, please call toll free 1-888-973-8377 or email us.

Senior Life Settlement Provider

A senior life settlement provider can play a key role in the structuring of a financial plan that utilizes available investments and asset transfer options to maximize wealth. As senior life settlement transactions become more integrated into comprehensive estate and financial plans, policyholders will see greater value from their life insurance policies and begin to realize their goals more effectively.

Our goal as a senior life settlement provider and affliate broker, is to receive the highest payout for your life insurance policy. Please fill out our free policy evaluation form, or call us toll free at 1-888-973-8377.

We use an alliance of the largest life settlement companies and providers to service our clients at the highest levels.

Till next time, have a blessed day..

Mortgage Program Reverse

HUD Mortgage Program Reverse

Homeowners 62 and older who have paid off their mortgages or have only small mortgage balances remaining are eligible to participate in HUD's reverse mortgage program. The program allows homeowners to borrow against the equity in their homes. ** (HUD's reverse mortgage program, is called the Home Equity Conversion Mortgage (HECM)

Homeowners can receive payments in a lump sum, on a monthly basis (for a fixed term or for as long as they live in the home), or on an occasional basis as a line of credit. Homeowners whose circumstances change can restructure their payment options.

Unlike ordinary home equity loans, a HUD reverse mortgage does not require repayment as long as the borrower lives in the home. Mortage companies recover their principal, plus interest, when the home is sold. The remaining value of the home goes to the homeowner or to his or her survivors. If the sales proceeds are insufficient to pay the amount owed, HUD will pay the company the amount of the shortfall. The Federal Housing Administration, which is part of HUD, collects an insurance premium from all borrowers to provide this coverage.

The size of reverse mortgage loans is determined by the borrower's age, the interest rate, and the home's value. The older a borrower, the larger the percentage of the home's value that can be borrowed.

For example, based on a loan at an interest rate of 9 percent, a 65-year-old could borrow up to 26 percent of the home's value, a 75-year-old could borrow up to 39 percent of the home's value, and an 85-year-old could borrow up to 56 percent of the home's value.

There are no asset or income limitations on borrowers receiving HUD's reverse mortgages.

There are also no limits on the value of homes qualifying for a HUD reverse mortgage. However, the amount that may be borrowed is capped by the maximum FHA mortgage limit for the area, which varies from $81,548 to $160,950, depending on local housing costs. As a result, owners of higher-priced homes can't borrow any more than owners of homes valued at the FHA limit. ** (This limit has been increased, and area are continually seeing higher limits.)

HUD's reverse mortgage program collects funds from insurance premiums charged to borrowers. Senior citizens are charged 2 percent of the home's value as an up-front payment plus one-half percent on the loan balance each year. These amounts are usually paid by the mortgage company and charged to the borrower's principal balance.

FHA's reverse mortgage insurance makes HUD's program less expensive to borrowers than the smaller reverse mortgage programs run by private companies without FHA insurance.

State FHA Loan Limits

Australia Reverse Mortgage Disadvantages

There has been a lot of talk about Austrialia's Reverse Mortgage programs, so I would try to add what I found.

I recommend that you speak with a lender in your area to find out exactly the advantages and disadvantages pertaining to your individual situation.

Here are a few disadvantages that I found on Yahoo!:

Disadvantages
The main disadvantages of Australia reverse mortgages are they can limit your options in the future:

- you may not have enough money left to fund moving into a retirement village
- the value of your estate may be much less than anticipated because the debt increases over time
- if you take the loan as a lump sum it may have an impact on your eligibility for Centrelink payments.

Visit our reverse mortgage information page to learn more about Reverse Mortgages, and how they work.

Till next time, have a blessed day..

FHA Reverse Mortgage Lender Question

Q: Are there any reverse mortgage lenders who do not require PMI (private mortgage insurance)? I was told by a realty agent friend that he believes this is mandatory with FHA. What is your opinion about this excessive charge on reverse mortgages?

A: FHA, the leading reverse mortgage lender, requires MMI (mutual mortgage insurance) on all its mortgages. This is different from PMI (private mortgage insurance), which is required on most conventional home loans with down payments less than 20 percent.

On a FHA reverse mortgage, we agree MMI premiums are totally unnecessary because the loan-to-value ratio is very low, usually far less than 80 percent of market value. The only way to avoid MMI premiums is to do business with one of the other reverse mortgage lenders such as Fannie Mae or Financial Freedom Plan.

Please call 1-888-973-8377 to have a Reverse Mortgage Specialist answer any questions.

Reverse Mortgage Loan Officers

I just helped put together a nationwide Reverse Mortgage Loan Officer List, this page will help consumers find a loan officer in their state or area.

Remember that loan officers of NGFS/1st Mariner Bank can assist client with loan in any of the 50 states. You do not need to use a local loan officer but some people perfer that face to face interaction.

The list is part of Reverse Mortgage Nation.

If you need help or assistance, please email or call us toll free at 1-888-973-8377.

Highest Value Life Settlement

A broker can get you the highest value for you Life Insurance Policy

RTG Consultants

A Life Settlement Broker can determine the policy’s eligibility for a Life Settlement and will seek to obtain the highest possible offer for the policy. The value of a life insurance policy is determined by a number of factors, including, but not limited to, the age and medical condition of the insured, type of insurance policy, rating of the issuing insurance company and amount of premium payments to keep the policy in force. Most types of insurance policies can qualify, including universal, whole life, and converted term.

Find out the value of your policy today, fill out our online quote form or call 1-888-973-8377.

Reverse Mortgage Counseling Info

I received a few questions about reverse mortgage counseling (also referred to as HUD counseling).

Remember that before applying for a reverse mortgage, you must first meet with a reverse mortgage counselor. You may, however, first approach a reverse mortgage lender, who can provide you with the names of approved counseling agencies in your area. A list of approved counseling agencies nationwide is posted on the Web by the U.S. Department of Housing and Urban Development. The counselor’s job is to educate you about reverse mortgages, to inform you about other alternative options available to you given your situation, and to assist you in determining which particular reverse mortgage product would best fit your needs if you elect to get a reverse mortgage. In general, counseling sessions must be done face-to-face. However, if you are seeking a Fannie Mae reverse mortgage you can do it by telephone. In some areas, telephone counseling may be available for consumers seeking an FHA reverse mortgage (Home Equity Conversion Mortgage).

Call 1-888-973-8377 to find out HUD Counselors in your area and to ask any questions about the reverse mortgage process.

Reversed Equity Stream

The power of a Reverse Mortage

The reverse mortgage is aptly named because the payment stream is “reversed.” Instead of the borrower making monthly payments to a lender, as with a regular first mortgage or home equity loan, a lender makes payments to the borrower. While a reverse mortgage loan is outstanding, the borrower owns the home and holds title to it and does not make any monthly mortgage payments.

RTG is here to help with all your reverse mortgage needs. Please contact us today!

Reverse Mortgage Weekly Interest Rates

Shorter week this week, due to July 4th!

Hope everyone had a great weekend.

Reverse Mortgage Interest rates for the week of July 5, 2005.

Monthly adjusting - 4.96%
Annual adjusting - 6.56%

These interest rates cover the FHA HECM Loan (Home Equity Conversion Mortgage), and the Fannie Mae Home Keeper Loan. Please contact us for interest rates covering the jumbo products.

If you have any questions, please call 1-888-973-8377 or fill out our free online reverse mortgage analyis.

HAPPY 4th OF JULY, GOD BLESS AMERICA!

Do I have to sell all of my policy?

Q: Do I have to sell all of my policy?

A: No. You can sell all of your policy or you can sell only a part of your policy. If you sell only a part, you will be required to assign or transfer only the part being sold. You will remain the owner and be required to continue the new amount of premium payments on the portion not sold. If you sell the entire policy, the provider will become the new owner of the policy. This action will transfer premium payment responsibility to the new owner.

A life settlement specialist would be glad to assist you and explain the whole process, plese fill out our online evaluation form or call us at 1-888-973-8377.