Survey Finds Homeowners Need Reverse Mortgage Loans to Pay For Everyday Expenses, Other Essential Needs

Findings by Consumer Recognition Guidance Service of Greater Atlanta, Inc.,
also demo finances needed for place repairs, medical bills ATLANTA, April 2, 2008 /PRNewswire/ -- Type A study of 213 householders who
have received contrary mortgage loans establish that the figure 1 ground for
the loan is to pay for day-to-day life expenses. Only 3% state they used the
funds from a contrary mortgage loan to take a vacation. The study was conducted in January by Consumer Recognition Counseling
Service of Greater Atlanta, Inc., A recognition guidance federal agency that provides
reverse mortgage counseling. The householders norm 74 old age old and have
lived in their places an norm of 18.5 years. The norm purchase price
of their places was $95,554 and the respondents said that the current value
of their places was approximately $221,997. When asked the question, "What prompted you to obtain a reverse
mortgage loan?" the responses were: -- Budget too tight - 19%
-- Need more liquid assets on manus - 16%
-- Home fixes and attention - 15%
-- Supply care for dependents, wage medical measures - 8%
-- Wage place taxations and homeowner's coverage - 7.23%
-- Falling behind on monthly payments - 6.25%
Type A individual must be 62 old age of age or aged to be eligible for a reverse
mortgage. A contrary mortgage is a loan that lets householders to convert
the equity in their places into tax-free income without having to sell the
home, give up the title, or take on a new or further monthly payment. Loans must be repaid when the householder no longer dwells in the home. "We anticipate the demand for contrary mortgages to turn significantly as
baby baby boomers attain retirement and demand finances to ran into day-to-day expenses," said
Sue Hunt, director of contrary mortgage guidance for CCCS. "It is important
for householders to educate themselves about contrary mortgages. Credit
counseling can assist them understand how these loans work." While 79.4 percentage of the respondents are retired, 10.5 percentage work
part- clip jobs, nearly 5 percentage work full-time and another 5 percentage said
they were looking for a job. Most contrary mortgage loaners necessitate householders to obtain counseling
prior to receiving the loan. To measure up for a contrary mortgage, a person
should have got a important amount of equity in their place and the place must
be in reasonably good condition. Although income and recognition history are not considered in securing a
reverse mortgage, CCCS believes it is critical for householders to review
their full fiscal state of affairs during counseling. Change By Reversal mortgage
clients necessitate to develop effectual budgeting accomplishments to ran into periodic
expenses, such as as place taxations and householders insurance. About CCCS of Greater Atlanta: CCCS of Greater Capital Of Georgia functions clients in all 50 states and have 18
offices in four states. It is the central office for the CredAbility Network,
a household of federal agencies serving consumers in North Georgia, south Florida,
middle Mississippi River and east Volunteer State as well as nationally via telephone
and Internet. CCCS is accredited by the Council on Accreditation and is a member of
the Better Business Agency and the National Foundation for Credit
Counseling (NFCC). Governed by a community-based board of directors, CCCS
is funded by creditors, clients, subscribers and grants from foundations,
businesses and authorities agencies. Service is available at offices
throughout metro-Atlanta and North Empire State Of The South in English, Spanish and American
Sign Language. CCCS offers around the-clock aid by telephone at 1-800-251-CCCS
or at its Web sites, and cccsenespanol.org.