FOR IMMEDIATE RELEASE

Contact:

Ellen M. Tucker

Certified Senior Advisor Specializing in Reverse Mortgages

The Tucker Team of Clarion Mortgage Capital

Phone: 877-827-7626

E-mail: etucker@dfwseniors.com

Wednesday, February 07, 2007

Reverse Mortgages Rescue Retirees from Foreclosure

GRAPEVINE, TX – In communities all across the nation, an increasing number of retirees are faced with the very real threat of losing their home because they can no longer afford to make their mortgage payments.

According to RealtyTrac’s 2006 U.S. Foreclosure Market Report, more than 1.2 million foreclosure filings were reported nationwide in 2006, up 42 percent from 2005. This amounts to a staggering one foreclosure filing for every 92 households.

One of the driving forces behind the increase in the number of properties in foreclosure is the impact of monthly mortgage payments increasing for homeowners with riskier types of adjustable-rate and subprime mortgages.

Subprime mortgages are especially risky for senior homeowners who are on a fixed or limited income. The higher interest rate and payment increases can put their ability to make their monthly mortgage payment at risk.

AARP has expressed concern regarding the growth of subprime mortgages among seniors. They claim that studies have shown that minority and older borrowers are disproportionately represented in the subprime mortgage market. In addition, AARP is concerned that aggressive “push marketing,” often conducted by subprime lenders, leads to loans that may not be appropriate for senior borrowers.

Growth in subprime mortgages for senior households is primarily due to escalating housing costs, medical expenses, and energy prices, as well as an increase in credit card debt held by seniors.

One out of every five (19.4 percent) subprime mortgages made today will end in foreclosure, according to a recent study by the Center for Responsible Lending (CRL).

Along with the rising cost of living expenses on a fixed income, seniors are especially vulnerable to foreclosure due to the cost of a prolonged illness or the loss of part of their income from Social Security when their spouse passes away.

Retirees facing foreclosure typically only have two options. They can refinance their mortgage, which includes past-due payments, late fees, collection fees, and legal fees assessed by the lender (since they will only qualify for a subprime mortgage, they may only be delaying the inevitable). The other option is to try to salvage some equity by selling their home. However, after paying the added default and sales transaction costs, the retiree may be left with little money to buy another home and will be forced to rent.

The reverse mortgage provides a third option: it enables homeowners 62 and older to pay off their existing mortgage and to have no mortgage payment for as long as they live in their home.

“Because credit and income are not used to qualify for a reverse mortgage, we are able to help our senior customers save their home from foreclosure,” Ellen M. Tucker, Certified Senior Advisor Specializing in Reverse Mortgages, The Tucker Team of Clarion Mortgage Capital, said. “There is nothing more gratifying than the relief on a customer’s face when we tell them that they will be able to stay in their home.”

The reverse mortgage option may not work for all senior homeowners, especially those with a high mortgage balance. If possible, it is a good idea to explore the reverse mortgage option before they go into default on their mortgage. This way they can avoid the increase in their mortgage balance from added fees so they have a better chance of qualifying for a reverse mortgage.

The Tucker Team of Clarion Mortgage Capital provides a free confidential reverse mortgage estimate by calling them toll-free at 877-827-7626 or by visiting www.dfwseniors.com.

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FOR IMMEDIATE RELEASE

Contact:

Ellen M. Tucker

Certified Senior Advisor Specializing in Reverse Mortgages

The Tucker Team of Clarion Mortgage Capital

Phone: 877-827-7626

E-mail: etucker@dfwseniors.com

Tuesday, January 09, 2007

Seniors Fall Victim to Easy Credit Offers

GRAPEVINE,TX – Senior adults are unfortunate targets of easy-credit offers which can trap them into mounting debt, according to The Tucker Team of Clarion Mortgage Capital.

It is not uncommon for seniors to receive 30 or more pre-approved credit card solicitations through the mail each year. Some include a check for $5,000 to $10,000 as an advance against their credit limit. All that is required is to deposit or cash the check. Simple enough until the payments are due.

“For many senior adults living on a fixed income with little savings and the need to pay medical expenses for an ailing spouse, higher housing costs, or rising day-to-day expenses, an offer of instant cash can seem like a blessing,” Ellen M. Tucker, Certified Senior Advisor specializing in Reverse Mortgages, The Tucker Team of Clarion Mortgage Capital, said. “But it can lead to big trouble!”

These offers take advantage of seniors by promoting a low introductory rate and then in the hard-to-read small print disclose that the rate will adjust up as high as 24%. All that most seniors can afford to pay each month is the minimum payment, with very little going to reduce the balance. Seniors can find themselves making payments the rest of their lives. So, what started off as a blessing quickly turns into a nightmare.

Households headed by someone 75 or older, with debt, increased substantially in 2004 to 40.3 percent from 29.0 percent in 2001, according to a recent study by the Employee Benefit Research Institute. This mounting debt is putting their ability to finance their remaining retirement at risk.

For many seniors, there is another option. A Federally-Insured Reverse Mortgage enables homeowners 62 and older to turn part of their home’s value into immediate cash for any purpose and with no repayment for as long as they live in their home: a program designed to help seniors maintain their independence and stay in their home. Since there are no monthly payments, there is never any risk of losing the home. With five plans to select from, senior homeowners may customize their reverse mortgage to best meet their needs.

Unlike high-interest credit cards or consolidation loans, the reverse mortgage program offers a low interest rate. Past credit history and income are not used in qualifying for the program, and the money received is tax-free and does not affect Social Security or Medicare benefits. Seniors may use this money to pay off debts or an existing mortgage to eliminate the payments. Also, they may receive extra money they need for medical expenses, home repairs, or unexpected financial needs.

“Once senior adults start taking on credit card debt they quickly find themselves trapped. Their monthly payments decrease the money they have to live on, causing them to fall deeper and deeper into debt. Some even find themselves using one credit card to make the payments on another. With a reverse mortgage they have no monthly payments to worry with, so they are able to get the money they need without falling into a trap. Plus, seniors retain ownership and control of their home. It’s smart money for many senior homeowners!” Tucker said.

For a free informational package on the reverse mortgage program, call The Tucker Team of Clarion Mortgage Capital toll-free at 877-827-7626 or visit www.dfwseniors.com.

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