Remarkable Mortgage

#1: “You Just Gave Me Back My House.” part 1

Remarkable Mortgage Stories

Colorado Reverse Mortgage Stories By Mark Allen Schmidt

TPG fall on Hwy 24
Fall scene Notch Mountain view HWY 24 Colorado photo by Mark Allen Schmidt

I was introduced to Betty by another Mortgage Originator who couldn't get her loan closed. Sometimes I'm called in as a "relief pitcher." Good news is, we all get the win.

Mark Allen Schmidt

After we closed her Reverse Mortgage loan, I drove Betty back to her house. As she sat on the bench in her front yard she said, “Mark, thank you. You just gave me back my house.”

That statement grabbed me by the heart for two reasons. First I know how close she came to losing her home. Second, most people equate Reverse Mortgages with losing their homes, instead of keeping or of getting their homes back.

The Backstory On Betty

I was introduced to Betty by a mortgage originator friend of mine. My friend has been originating mortgages since 1987. Last year, he tried to refinance Betty’s home and that didn’t work. Then he tried to put her property in a Reverse Mortgage. That didn’t work either. Here’s why: about 14 years ago, Betty’s husband took sick.

Betty had two issues that stopped her from doing a traditional refinance and from putting her home into a Reverse Mortgage: income and late mortgage payments.

At that time, both she and her husband were involved in their careers. They had a second home in the Colorado mountains (that they loved very much) and their future together looked rather bright and beautiful. Then he got sick and everything began to change. I won’t go into the deep details but let me frame her situation like this: in my 59 years, I have never seen a person give so much care to another person.

From what I was able to piece together, Betty had spent at least $300,000 caring for her husband. After he passed, she lost his the income from his monthly disability, she no longer had her job and they had depleted nearly all of their savings and retirement accounts. For the last three years, Betty had been living alone, trying to make ends meet. All the while, her funds were dwindling while her dreams of keeping the house she and her husband loved were fading.

RM house 31 600 x 389
From the Remarkable Mortgage Photo Gallery

Reverse Mortgages are not based on your credit score. They do take into account your credit payment performance history.

Betty got behind on the payments for her mountain property; she tried to sell but the deal fell through. Once she was behind on the payments, things snowballed against her. She managed to sell the mountain home but the damage to her credit payment history was already done.

A week later, my colleague and I met at Betty’s house. He brought the three inch thick folder that contained the documents from two failed refinance attempts. He asked me, “I know everything about forward mortgages, but I don’t know how to get this deal done. Can you help us?”

We sat down together and began to listen to Betty’s story. She was pretty emotional and she had a very large story to tell but I needed to know some very specific things about her past.

Here are a few of the questions I needed to ask:

 

The Questions I Needed To Ask

-Were the late payments on your second home caused by your husbands sickness?

-Did you manage to keep up the insurance and tax payments on your mountain home?

-How drastically did your income change when your husband became sick?

-And how much more did your income change after he died?

 

It Was Very Difficult, Still She Answered All My Questions

I took notes, she answered the questions and with a little gentle guidance from my friend, we managed to stay on topic. Once I had the information I needed, the three of us talked for a while. As we left her home, my friend and I had a few words outside.

“What do you think our chances are?” He asked.

“I think we have a good chance if we can show what we call an extenuating circumstance as the cause of late payments on the mountain home. Second, if we get a good appraisal, at least $435,000, we might make it,” I said.

We needed to show how the circumstances of her husbands illness affected her ability to keep up with her financial responsibilities. And that is exactly what happened in her situation.

Mark Allen Schmidt

Read part 2 of "You Just Gave Me Back My House."

Mark is the host of Remarkable Mortgage.com & author of The Remarkable Reverse Mortgage Stories
Mark is a Colorado Reverse Mortgage Secialist. NMLS 846014 CO 100037582
720-206-4539 Remarkablemortgage@gmail.com  AKA...The Prime Guy

Mark Allen Schmidt

Call or Text Mark

720-206-4539

remarkablemortgage@gmail.com

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