Are you behind, or at risk of becoming behind, on your mortgage payments?
Be proactive and receive FREE help from our licensed housing advocates. We can do this through our many homeownership preservation programs that include Reverse Mortgage Counseling and Foreclosure Prevention. Click on your situation to learn more:
- I am 62 years of age or older and want to know my options.
- I am having trouble making my mortgage payments and don’t know where to turn.
Our team specializes in mitigating extremely urgent cases where, without intervention, foreclosure is imminent. At a minimum, our advocates are usually able to postpone the sale date of the property and gain valuable time to avoid foreclosure.
This program is FREE! Read more about the foreclosure prevention program in our FAQs.
Reverse Mortgage Counseling Program
A reverse mortgage is a unique loan that enables senior homeowners, 62 years of age and older, to convert part of their home equity into tax-free income without having to sell their home, give up the title, or make a monthly mortgage payment while living in their home. In order to receive a reverse mortgage loan, the senior homeowner is required to complete reverse mortgage counseling.
We are a HUD-approved housing counseling agency. Read more about the Reverse Mortgage Counseling process in our FAQs.
To schedule an appointment, please call 843.628.3000 or email us.
- I am not behind in my monthly mortgage payments, but my savings are now depleted. What should I do?
Immediately contact your servicer and make them aware of your present situation and contact a Housing and Urban Development (“HUD”) certified housing agency for assistance. Family Services, Inc. DBA Origin SC is a HUD-certified agency.
- What is foreclosure?
Foreclosure is a legal process in which the right to a property is taken away from the owner and the property is then sold to satisfy unpaid mortgages and liens against the property.
- How many payments can I miss before my lender puts my property in foreclosure?
It depends on what type of loan you have. Your mortgage contract should state how many payments you can miss before a Notice of Default is filed and sent to you.
- I am in foreclosure. Is it too late for help?
No, until the home is sold at a foreclosure auction, you still own your home and can attempt to strike a deal with the servicer of your mortgage loan. It is best to get assistance IMMEDIATELY because the process can get complicated.
- Should I hire an attorney?
Hiring an attorney to assist you through the foreclosure process is not normally necessary unless there are clear legal issues to address.
- What is a Loan Modification?
A loan modification is a procedure in which a loan’s terms, such as the interest rate, monthly payment, or terms are altered with the approval of a lender.
- What is a Deed in Lieu of Foreclosure?
A Deed in Lieu of Foreclosure (commonly referred to as simply a “Deed in Lieu”) is when the lender accepts the deed to the property from the borrower to satisfy a defaulted loan and thus avoids the delay and costs of the foreclosure process.
- I received a letter in the mail saying their company can guarantee a loan modification. Should I call the number?
Beware of scams! A legitimate offer to assist you will never guarantee or ask for a fee for their services.
- What is a reverse mortgage?
A reverse mortgage is a special type of home loan that lets you convert a portion of the equity in your home into cash. The equity that you built up over years of making mortgage payments can be paid to you. However, unlike a traditional home equity loan or second mortgage, reverse mortgage borrowers do not have to repay the loan until the borrowers no longer use the home as their principal residence or fail to meet the obligations of the mortgage. You can also use a reverse mortgage to purchase your primary residence if you are able to use cash on hand to pay the difference between the reverse mortgage proceeds and the sales price plus closing costs for the property you are purchasing.
- Can I qualify for FHA’s HECM reverse mortgage?
The Federal Housing Administration’s (FHA) reverse mortgage program, also called HECM (Home Equity Conversion Mortgage) program, is the only reverse mortgage insured by the U.S. Federal Government. To be eligible for the FHA HECM, the FHA requires that you be a homeowner 62 years of age or older, own your home outright, or have a low mortgage balance that can be paid off at closing with proceeds from the reverse loan, have the financial resources to pay ongoing property charges including taxes and insurance, and you must live in the home.
- Can I apply for a HECM even if I did not buy my present house with FHA mortgage insurance?
Yes. You may apply for a HECM regardless of whether or not you purchased your home with an FHA-insured mortgage.
- What types of homes are eligible?
To be eligible for the FHA HECM, your home must be a single family home or a 2-4 unit home with one unit occupied by the borrower. HUD-approved condominiums and manufactured homes that meet FHA requirements are also eligible.
- What are the differences between a reverse mortgage and a home equity loan?
With a second mortgage, or a home equity line of credit, borrowers must make monthly payments on the principal and interest. A reverse mortgage is different, because it pays the homeowner – there are no monthly principal and interest payments. With a reverse mortgage, one is required to pay real estate taxes, utilities, and hazard and flood insurance premiums.
- Will we have an estate that we can leave to heirs?
When the home is sold or no longer used as your primary residence, the cash, interest, and other HECM finance charges must be repaid. All proceeds beyond the amount owed belong to your spouse or estate. This means any remaining equity can be transferred to heirs. No debt is passed along to the estate or heirs.
- How much money can I get from my home?
The amount varies by borrower and depends on:
- Age of the youngest borrower;
- Current interest rate;
- Lesser of appraised value or the HECM FHA mortgage limit of $625,500 or the sales price; and
- Initial Mortgage Insurance Premium.
- If there is more than one borrower, the age of the youngest borrower is used to determine the amount you can borrow.
- Should I use an estate planning service to find a reverse mortgage lender?FHA does NOT recommend using any service that charges a fee for referring a borrower to an FHA-approved lender. You can locate a FHA-approved lender by searching online at www.hud.gov or by contacting one of our reverse mortgage counselors.
- What is the cost to receive reverse mortgage counseling?
A non-refundable one-time fee of $150 for counseling is payable at time of booking an appointment. A fee of $25 will be paid to the attorney at closing if you proceed with obtaining a reverse mortgage.