Going From Living In an RV to Owning A Home In Medford Oregon – Using A Reverse Mortgage To Purchase A Home
Susan (not her real name), 70 years young, spent the last couple of years living with friends or in an RV park. That was, until just a couple of months ago when she bought a home using a reverse mortgage.
A little over 2 years ago, Susan and her ex started to go through a divorce. As soon as that process began, her husband moved out and stopped making the payments on the home. Her husband had always been the bread winner and she had always been the homemaker.
Susan tried her best to make the payments but could not earn enough to cover them and pay for the rest of the necessities in life.
During this time her mother passed away and she inherited some money. She worked with her lender to see if a loan modification was possible. She was denied, because even if she paid the mortgage down with her inheritance, she still did not qualify for the monthly payments. It was at this point that she enlisted the help of a real estate agent to sell her home. It took a while, but she was eventually able sell the home through a short sale.
After almost two years of not having a “home” and unable to afford rent, she decided it was time to buy a home with the money she had inherited. Her first stop was to a hard money lender. She qualified for the loan but was uncomfortable with the monthly payment. She was then referred to another local lender who told her she could not qualify for a reverse mortgage because it had not been three years since the short sale.
If it were not for Susan’s unwillingness to give up, she may have still been living in her RV today. Somehow she stumbled across me online. She gave me a call and told me about her situation. Since I specialize in reverse mortgages, I knew that she could qualify for a new loan because she only needed to be 2 years out of the short sale to qualify.
Per FHA guidelines, I could not even take the application until a full 2 years had passes since the short sale, so we had to wait two months before we could even start the process. In the meantime, she somehow found a seller that was willing to accept her offer and wait for her to be able to qualify. Ironically, the seller had a reverse mortgage on his home, which is the only reason I could imagine him waiting. But apparently, according to the real estate agents, he just liked her. The agents thought there might have been a love connection brewing. But, hey, I am not one to gossip.
Susan now owns a nice little house which is about 8 times the living space of her RV, a yard, washer and dryer, full size refrigerator, dishwasher and all the other creature comforts she had been without for so long. All she has to pay are her taxes and insurance which are cheaper than what she was paying on space rent for her RV.