Farm Reverse Mortgages

Farming has always been a tough lifestyle, especially for the small farmers in this country. Many smaller farmers have been very adaptable in finding ways to keep their operations working and making a profit.  Increases in energy, supplies, transportation and other essentials that are needed to keep a farm operating are making it tougher every day.  Adding to this the competition from larger corporate farms and imports are making it nearly impossible for some to survive.  Reverse farm mortgages are another possibility which will give these farmers access to some of the funds locked up in their farm property without needing to have to sell the farm.

A farm reverse mortgage loan enables the farmers to convert a small portion of the equity in their farm into tax free income. The largest single source of potential funding for many of these farms are The equity built up over years of operating the farm and the increases in value of the property. These types of mortgages are unlike a traditional equity loans or second mortgages, when a lump sum is provided and then repaid over time.  With a reverse mortgage, a lender provides funds to the farmer without requiring the farmer to give up title, or selling the farm. 

There are a number of different methods that are used to avail the funds to the farmer:
·      A single lump sum of cash 
·      Monthly payments
·      An account with a credit line
·      A combination of all the above payment methods.
Regardless of the way the loan is given out to the borrower, usually repayment of said loan will only need to be repaid when either the principle borrower dies or relocates on a permanent basis away from the farm. 

Farmers are advised to seek out more information by getting in touch with an independent reverse mortgage counselor prior to submitting their application to the program.  Once this is done the farmer can be well informed and educated on reverse mortgages and they can also get assistance when trying to decide which of the products suits their specific situation.  You can also get more information about farm reverse mortgages by contacting the local farm bureau, credit union or financial institution.  Since the farm probably your largest single investment and may have been in the family for years, it is smart to know more about this product before deciding if it is right for you.




Reverse Mortgage News:
Recent cases shine spotlight on financial abuse of elderly - Los Angeles Times

Recent cases shine spotlight on financial abuse of elderly
Los Angeles Times
Financial abuse of the elderly, including pushing them into reverse mortgages without their full understanding, has been perpetrated by mortgage professionals and victims' family members. By Lew Sichelman The recent conviction of a Delray Beach, Fla., .

..


Is a reverse mortgage the right choice?
A reverse mortgage is a loan for senior homeowners over 62 years old that uses some of their home equity as collateral. If a person keeps paying the property taxes and insurance on the home, the loan does not have to be repaid until the last homeowner moves out of the property or passes away...


Reverse mortgage may be best option for elderly homeowner
A reverse mortgage would enable an 82-year-old woman who needs cash to tap the substantial equity in her home. Dear Liz: My healthy and active 82-year-old mother is faced with having to sell her home this year because she's running out of money. She has lived a very minimal lifestyle for many years as her savings dwindled, and her income is now basically Social Security. She owes $25,000 on a ...


Market Wire - MoneyTV with Donald Baillargeon, 11/4
November 4, 2011 -- A Greek Debt mess, gold in Mexico, medical records, e-books, reverse mortgages, Hollywood deals; this week on MoneyTV with Donald...


Are Rates Leading Borrowers Away From . - Reverse Mortgage Daily
With low interest rates being so widely publicized, some originators are seeing borrowers that might otherwise be good reverse mortgage candidates instead refinance their existing mortgages when possible...


NRMLA Reverse Mortgage Blog Goes Live | Reverse Mortgage Daily
The National Reverse Mortgage Lenders association has launched a new industry-facing blog at nrmla.blogspot.com. The first post, written by NRMLA President and CEO Peter Bell outlines the Department of Housing and ...


Is bankruptcy an option with reverse mortgage?
Dear Bankruptcy Adviser,If somebody has a reverse mortgage, could he file for bankruptcy and still keep the house -- of course meeting all the other obligations to the mortgagor?-- John Dear John,This ...


Reverse mortgages and their alternatives
Living off your home equity..


Google
 

Technorati Tags: , ,