Real Estate Zealot

Is a Short Sale Right For You?

In this interview for Metro Brokers TV, Steve Konecny talks about short sales and how to decide if this option is right for you.

Hello my name is Steve Konecny. I'm with Metro Brokers Liberty Associates. My office is located 8480 East Orchard Road in Greenwood Village, Colorado.

I'm here today to talk to you a little bit about short sales. A short sale is negotiated by an experienced realtor such as myself using a third party transaction company to see if we can get the bank to negotiate with us to take less than what is owed on your home.

Many folks find themselves in a position today, especially in this market of unemployment, etcetera, where they cannot make their mortgage payment.

A short sale is an alternative to their foreclosure.

If you or someone you know might be in this position, give me a call (720) 936-9975 and let's see if a short sale is an alternative resolution to the position you are in today.

Thank you. Call Steve Konecny at 720-936-9975 for more information on short sales.

Matt Tolooee: An Expert in Short Sales

Matt Tolooee of Metro Real Estate Group in Colorado Springs is an expert in short sales and foreclosures and can help you expedite the process.

Interviewer: Hi I am Kathy Soltero with Metro Brokers TV, thanks so much for watching us today. In the studio, we have with us Matt Tolooee, he is with Metro Real Estate Group from Colorado Springs, and we really appreciate you coming in here and talking with us.

Matt: Thanks, nice to be here.

Interviewer: Now you have recently relocated your offices, tell us where you are now?

Matt: We are located at 612 North Tejon, centrally located in downtown Colorado Springs. Initially, we were at 325 North Tejon but due to some circumstances, we have relocated, so Metro Broker's Downtown Colorado Springs is still open and active.

Interviewer: That's good to know, and is that a better location for you to, do you think it's going to be a good place for you to be?

Matt: Yeah, we think it's a, it's not in the restaurant segment of the Tejon Street, so parking is a lot easier to find and it's a little bit less hectic. So it's the better block we think and we think it's a good location.

Interviewer: And you have a couple of different agencies working in your office, can you tell us what agencies are there?

Matt: Yeah, we, we kind of set a good example for Metro Brokers, how we have different companies working under the same roof. We have Schneider Properties and Hawk Agency and my own company Metro Real Estate Group. So, three of us right now; hopefully more to join us, working together and sharing a lot of information that we have about the industry, helping each other out.

Interviewer: A lot of knowledge.

Matt: Yeah, absolutely.

Interviewer: So, tell me about the kind of real estate that you're focusing on.

Matt: All three of us do residential real estate and my company, does commercial and all of us do investment properties. We have a strong emphasis in short sales, bank owned and distressed properties.

Interviewer: And you were just telling me that you focused on several thousands, hundreds of thousands in short sales this year.

Matt: Yes, we do combined, we have probably about 50 or so listings, a good majority of them are short sales and we pride ourselves in knowing a lot about the short sale process, foreclosure process and I know within our office, we probably have done over a half million dollars of debt forgiveness under the government sponsor program called HAFA.

Interviewer: Can you kind of give us a quick overview of it?

Matt: HAFA was introduced by the government for people who have had a financial setback and they need to sell their home but they are upside down. So the banks are quickly adapting the program where they can come in ahead of time, review the application for HAFA and set a price upfront. So the short sale process, when there is an offer, instead of taking weeks and months you can get an answer within 10 days.

Interviewer: That would really expedite the short sale process then.

Matt: Yes and what's really more important is that the deficiency amount will be forgiven upfront. Once they are qualified into the program, even if they don't sell their house, the entire balance will be forgiven.

Interviewer: Quickly, can you tell our viewers now, how they can get a hold of you?

Matt: My name is Matt Tolooee; our office number is 719-219-6741, and my direct line is 719-310-5185.

Interviewer: How about the website?

Matt: My website is ColoradoRealEstateSource.com.

Interviewer: Matt, thank you so much for coming in and talking with us today.

Matt: My pleasure.

Interviewer: And thank you so much for watching MetrobrokersTV.com.

Let An Expert Help You Buy a Home

Greg Howard with Metro Real Estate Group specializes in residential real estate in the Colorado Springs area. He can offer the right, expert guidance to help you sell your home quickly or find the right home to buy.

Interviewer: Hi I am Kathy Soltero with metrobrokerstv.com, and today we have in the studio with us Greg Howard, he is with Metro Real Estate Group. Greg, thank you so much for coming in and talking with us today.

Greg: Thank you for having me.

Interviewer: Tell me a little bit about your business and where your real estate offices are?

Greg: Our real estate office is kind of in the downtown portion of Colorado Springs, we're off North Tejon. It's a small office; there are about eight different brokers there. And I am with Matt Tolooee at Metro Real Estate Group.

Interviewer: Okay and what areas are you specializing in?

Greg: I specialize in pretty much anything, I hate to say that it's that broad, but the only thing that I don't do is commercial work and the primary reason for that is, I work by referral. And by referral, I don't like turning things away that I don't have control of, hence so I try to do whatever I can, whenever somebody is referred to me.

Interviewer: Have you dealt with many short sales or bank owns?

Greg: Unfortunately, we have to deal with all those things. In the past 10 years, I've done everything from lots, short sales, manufactured homes, multimillion dollar homes, ranches, everything, when I first got started up I primarily focused on HUD foreclosures and investment properties.

Interviewer: Okay and how do you feel that Colorado Springs market is doing now?

Greg: I think it's doing pretty well. I don't know that there's a market in the US that's doing wonderfully but, if, if somebody wants to sell their home and they have the right kind of information, I think they can do pretty well. It's the factor of selling homes is all about, how you bought the home and how long you had the home. And then have an agent that actually can provide you with the right guidance to keep you either out of deep water or to actually skim some off.

Interviewer: Right, do you feel like the market down there is stabilizing a little bit, do you think that you're starting to pick up a little, are you still seeing a lot of foreclosures?

Greg: Well I, I actually watch the foreclosure list and I still see a lot of foreclosures. I think it's a tricky market for sellers to actually sell properties but it's a wonderful time to buy, and even if you had to sell and then buy, it's really still a good time. I don't think there is a bad time here. If somebody said, "When is the best time to buy a piece of property?" The answer would be... five years ago...10 years ago. So today will be that "ten years ago" or "five years ago".

Interviewer: Exactly, do it when you can right now.

Greg: Absolutely. Get on the merry-go-round when you can.

Interviewer: Exactly, so what do you enjoy most about real estate?

Greg: If I had to pick something that I enjoyed, it was probably the clientele of the buyers. They are happy to be there as long as you get them in the right direction, make sure the financing is working well they are just a pleasure to be with all the time. There's nobody more gracious than a buyer when you hand them a key at closing.

Interviewer: Well how can customers reach you?

Greg: Customers can reach me via the web at greghowardrealtor.com. You can also find me at Metro Brokers on their website at Greg Howard. You can also reach me on my cell phone which is 719-445-9515.

Interviewer: All right, Greg thank you so much for coming in and sharing all that with us today.

Greg: Very good, it was a pleasure, thank you.

Interviewer: All right, and for more real estate related videos like this one be sure to tune into Metro Brokers TV online.

Tom Guest, 2011 President of Metro Brokers Inc.

Tom Guest, 2011 President of Metro Brokers Inc., talks about how things are developing this year within the Metro Brokers real estate organization.

Metro Brokers is a unique company allowing agents to start up their own business for very little money to join a company that offers statewide recognition. Metro Brokers offers 100% ownership to agents and brokers allowing flexibility to focus on their strengths in real estate and even loans, property management and much more!

Metro Brokers get a free website, professional video opportunites and an online presence through Metro Brokers Online.

Future goals for Metro Brokers this year include building membership and strong offices through the great support offered by the organization and imroving communication as a whole.

Tom Guest is a Broker/Owner of Key Masters Real Estate Company and has sold Denver real estate for 18 years.

Interviewer: Hi, I am Kathy Soltero with Metro Brokers TV. Today in the studio, we have with us Tom Guest, he is with Key Masters Real Estate, and he is also our president of Metro Brokers, Inc. Thank you so much for coming in, Tom.

Tom Guest: You're welcome, Kathy.

Interviewer: You have been president since the beginning of January for 2011, and tell me how things are going so far?

Tom Guest: Things are going good. You know it's been a real privilege and honor to be president of Metro Brokers. We are an organization that elects their board of directors, we elect our president, so we are self run, we are self ruled, and it's been very enjoyable.

Interviewer: And you're still doing real estate at the same time. So you've got a lot going on.

Tom Guest: Yes.

Interviewer: What sort of activities are you involved in?

Tom Guest: With Metro Brokers, I mean we do all of our planning, we have the triathlon coming up, I am involved with all kinds of activities that will span everything to build our business for Metro Brokers.

Interviewer: Real estate has been tough. So, what are some of the challenges that we have been facing as in Metro Brokers?

Tom Guest: Well one thing is our membership, membership numbers have been slipping last few years, but as it has in all organizations, the one thing we are trying to do is to build our membership to get our word out, to let everybody know how good we are as a membership organization, what we can offer them.

Interviewer: Why should somebody join Metro Brokers?

Tom Guest: One thing about Metro Brokers is we are unique in the business, compared to other companies. We offer someone the entrepreneurship to where they can open up their own office; they can start as a broker associate, they can develop into a broker. They can become an employing broker and they can become an office owner.

Interviewer: So there is a really wide range of opportunities for people to come into Metro Brokers. What about cost, is it a better deal for people do you think?

Tom Guest: Oh! The cost savings is tremendous, you can join Metro Brokers for only $80 a month and then you will have an office fee, but basically you are 100% broker, you are in charge of your own future, you own your own company for $80 a month, nobody else offers this.

Interviewer: What are some of the other aspects of Metro Brokers that make it so enticing for people to join?

Tom Guest: The things that make it enticing to join is that you can form your own business and you can have associates working for you. So you can have your own business, this carries on with you forever, no one will take it away from you. You can do your own business, you can be a loan officer, you can have loans, you can do property management, and you can do relocation. So you form your own organization, you can do whatever you want within that organization and have your own agents working for you.

Interviewer: What are your hopes and aspirations for Metro Brokers while you are president?

Tom Guest: Well a couple of things that we are looking at that are very important to us is to build our membership numbers. So we want to build those back up into the 1500 range. We want strong offices; offices are the key to our company and our success. So increase the strength of the offices, improving communication, communication to the office owners, communication to each of our brokers from corporate.

Interviewer: We have great access on the web as well and websites for every individual involved in Metro Brokers, as well.

Tom Guest: We do, we offer a free website, we also have metrobrokersonline.com and that is a complete website for the public to search for properties and offers all kind of opportunities for everyone to build our membership.

Interviewer: Especially on the video aspects too, they can get interviewed and have a video presence as well.

Tom Guest: Yes.

Interviewer: All right, well Tom thank you so much for joining us today, it's been a pleasure and good luck for the rest of the year.

Tom Guest: Thank you, Kathy.

Interviewer: And for more real estate related videos like this one, be sure to tune into metrobrokerstv.com.

Fuller Sotheby's Focuses on Quality Homes and Excellent Service

Scott Webber, owner of Fuller Sotheby's International Realty talks about the Denver area market and how Fuller Sotheby represents quality homes and provides excellence in real estate.

Today we are talking with Scott Webber, owner of Fuller Sotheby's International Realty here in Denver, welcome to the show.

Scott Webber: Thanks Dan, good to be here again.

Interviewer: Glad you're here, two years ago you had just bought Fuller Towne & Country Properties and I'm sure you heard a lot of people say, "Wow! That guy bought a firm at an interesting time."

Scott Webber: Well no doubt, the timing was suspicious and coincidental.

Interviewer: Right.

Scott Webber: But you know when you have been at this business for 35 years and you're committing for another 20 years, what's a little blip in the market?

Interviewer: There is bound to be a few.

Scott Webber: Yeah, you know when it's a long term commitment you know these are just the up and downs in the business and you are prepared to deal with whatever market comes at you.

Interviewer: Well let's talk about that, how has it been over the last two years? Can you give us a quick assessment of where you are at and where the market is at, at this time?

Scott Webber: Well, you know the market is definitely recovering, I mean we are clearly seeing listing inventories getting smaller...we are seeing more buyers in the market. So the balance between the supply and the demand is, is definitely improving. We've seen more sales in the luxury segment so far this year, than we saw all of last year.

Interviewer: Talk about the luxury market, obviously Fuller Sotheby's has been well entrenched in there and that's been a difficult market over the last two years both for buyers and sellers in all the ways. You said it's getting better... the outlook is that it will continue to improve? Some people are concerned about a double dip, what do you think?

Scott Webber: I don't think this double dip rumor is anything worth worrying about.

Interviewer: Sure.

Scott Webber: I mean, I think people are just gaining more confidence in the overall economy all the time and we are, we are definitely seeing that in the way people are spending today, you know people are definitely much more liberal in their spending and so the luxury segment has picked way up, we are having way more showings, way more contracts, in fact multiple offers.

Interviewer: For disclosure, obviously I work in the luxury market, I have a lot of luxury listings. One of the things that I run up against and I'm sure you hear a lot of as being owner of the company is, Fuller Sotheby's wouldn't be interested in selling my home, mine is not a luxury home.

Scott Webber: Yeah clearly, our program is oriented towards the segment of the market that is maybe $500,000 or above, but really our brand is more about the quality factor than it is about the luxury segment. You know we're really just an organization with a brand and with a philosophy that's oriented around the concept of quality, and just really doing things with excellence. And so every one of our clients benefits from that commitment and that philosophy regardless of the price point. Last year, we sold a property for $50,000, and we also had the highest sale in the market at $9.2 million. So you know, we are selling everything in-between, and we take as much pride in selling the property that's on the lower average sales price range as we do in the luxury segment.

Interviewer: I tell people all the time that, you know, yes we sell million dollar homes, and if yours is not a million dollar home, don't worry, you'll just get the million dollar service.

Scott Webber: That's exactly right, that's exactly right.

Interviewer: Yeah, all right, what's left on the horizon, what do we have to look forward to where is the market heading?

Scott Webber: Well, I think we're just going to see continual improvement you know we are really fortunate in Denver, you know Denver you know there is, there is immigration into Denver, there is a lot of companies moving here, there's you know there's, there's growth, there is, Denver is very fortunate and, and so I see the Denver market you know itself you know getting stronger, I see the national marketplace getting stronger, I think that you know that the future is bright, very bright.

Interviewer: Yeah, people still want to live in Denver.

Scott Webber: Absolutely. It's a good place to be.

Interviewer: Thanks for being here.

Scott Webber: Thank you Dan, good to be here.

Terry Jenni Sells the Front Range area

Metro Brokers agent, Terry Jenni of Realty Innovations, focuses on the entire front range area. Visit his office in the historic downtown Littleton Littleton Town Center.

Interviewer: Hi I'm Kathy Soltero with metrobrokerstv.com, and today in the studio we have with us Terry Jenni, he is with the Littleton Town Center Metro Brokers office, welcome, thank you very much for coming in today.

Terry Jenni: Thank you for having me here.

Interviewer: You bet and tell me a little bit about where you are located with your office?

Terry Jenni: Our office is located close to historic downtown Littleton. right off of Prince Street and it's a very easy location to get to in the Littleton area.

Interviewer: Tell us a little about yourself, how long have you been in the business, what brought you to Metro Brokers?

Terry Jenni: I've been in the business since 1998, a Colorado native, six generations here in Colorado, our family has been here. I came to Metro Brokers because of the great desk fees or low desk fees and the low overhead, plus the technology they offer as well as their sign recognition throughout the community.

Interviewer: In this day and age it is all about the bottom line, isn't it?

Terry Jenni: Yes it is.

Interviewer: Especially for realtors in any kind of business that we do, tell me about, do you have any specific areas that you work in?

Terry Jenni: I service the Front Range area, from north to Brighton south to Castle Rock, East Aurora and West Evergreen, I do specialize the South Metro area.

Interviewer: Do you work on short sales, bank owned properties, all of the above?

Terry Jenni: I have done some work on short sales and bank owns, I like to do work with first time home buyers and helping people resell their houses as well as service the accounts. I stay in, in good communication with my clients and I work closely with them throughout the transaction.

Interviewer: How do you feel the market is going right now?

Terry Jenni: The market is steady, it's challenging, it doesn't seem to be stagnating yet. On the other hand, there are a lot of houses for sale and one of the biggest challenges right now is having the buyers be approved for their loans.

Interviewer: And tell me a little bit more about that why do you feel that way?

Terry Jenni: It seems with the new government regulations, and more and more we have each year, it's becoming harder and harder for buyers to purchase homes because the amount of information the lenders need.

Interviewer: Is it just more demanding, is that what it is or is it, is it always been that way?

Terry Jenni: Yes, it's more demanding as well as it's a constant flow of information from start, from the initial interview with the lender to almost before closing, providing with the proper information.

Interviewer: But the bottom line it's always going to be worth it if you can get out there and buy your home and get the investment.

Terry Jenni: Absolutely...

Interviewer: Do you feel that there are a lot of great properties still available out there or we are starting to see kind of a bottom end here now?

Terry Jenni: There are some great properties out there, it's a good time for buyers to purchase homes, there are so many nice properties out there, very reasonable prices.

Interviewer: Do you think that the banks are starting to do a little bit more in working on some of those properties maybe making them more appealing because for the most part they have been kind of thrashed?

Terry Jenni: Yes the banks are improving them a little bit, there are also some new loans through FHA where there is money available for the purchaser to have excess money in improving their home when they purchase the home, so there are some new programs out there through FHA that is helpful as well.

Interviewer: So you feel very satisfied then with turning over to Metro Brokers?

Terry Jenni: Absolutely, it's a great organization.

Interviewer: All right, well Terry Jenni, thank you very much for joining us today here on Metro Brokers TV.

Terry Jenni: Thank you for having me.

Interviewer: You bet, and for more real estate related videos be sure to turn your browser to metrobrokerstv.com.

Metro Brokers offers superior technology and services

Art Momper with the Denver Home Team brings his vast experience to Metro Brokers. He made the switch to Metro Brokers because of the advanced technology, which combined with his experience, puts him in the top 5% of Brokers nationwide.

Interviewer: Hi, I'm Kathy Soltero with metrobrokertv.com. Today we have in the studio with us Art Momper and he is with the Denver Home Team, welcome.

Art Momper: Hi.

Interviewer: Tell me a little bit why you joined Metro Brokers? Tell me a little bit about your history, where you have been, how you are doing?

Art Momper: Well I've been previously with RE/MAX for about 31 years and had a long happy career there, but you know recently I started to do some analysis and looked at some of the options, because of market conditions that we have and found that Metro Brokers is really providing equal to superior technology and services to the RE/MAX affiliation I had and, and certainly in a much more favorable price point and I found that, that would allow me to continue to increase my technology investments and client representation.

Interviewer: How would you say that the technology helps your business?

Art Momper: Well you know, I've been in the business 36 years, so I have a lot of experience and you know for clients, that's something that is really important and really valuable. A lot of brokers can invest in technology but they don't have the experience component as well so, but experience without the current market tools doesn't help you much, so I made sure that I am always in the top 5% of brokers nationwide and the technology tool box that I offer. This transition to Metro you know I get to use their technology and continue to invest in the services that I am keen on, you know I think it's important that somebody who lists a property with me that their property on the first page of Google within a couple of days and, and all the primary websites that are available and you know I can put QR codes on brochures and people can pull up the information by mobile and I make sure every current opportunity is available, so my adjustment to Metro has been an excellent opportunity to allow that investment to increase and maintain my book of business as well.

Interviewer: What areas do you focus on, do you have a certain price range or...?

Art Momper: Well you know we, in this industry these days can't be too focused on price range in my opinion but you know and actually one of the things that I enjoy the most is helping first time buyers because you know you get to kind of refresh your vision of real estate through their eyes a little bit, so I enjoy that a lot and of course I work with multi-million dollar properties as well.

Interviewer: And Art, since you have been in the business so long, how would you say your past clients are rating your services?

Art Momper: That's a good question and I'm real proud of that you know, obviously we all depend on our past client base for our business as well and referrals and I do get a very strong response there and but I think the thing that most of my past clients respect the most in me is that I'm always going to give them an honest answer and I have an assistant for 25 years and her name is Harriett, and she and I kid each other all the time because I probably talk more buyers out of buying more houses than most brokers have sold because if I don't think it's a good fit I'm going to tell them that you know I'm not going to worry about the commission, I am going to worry about giving them the best outcome and so they, they respect that on, of me and they know that I am going to also have all the current tools like we talked.

Interviewer: Right, well Art Momper, the Denver Home Team, we appreciate you coming in and telling us about your business and congratulations and keep up the good work.

Art Momper: Yeah I appreciate it, thank you.

Interviewer: Thank you so much and thank you for watching metrobrokerstv.com. For more real estate related videos be sure to tune in.

How to Obtain a Reverse Mortgage

In this video by IPTVBoyz, we find out what a reverse mortgage is and how to get one to turn your home equity into cash.

Interviewer: Today we are talking with Doni Dolfinger, a reverse mortgage specialist with Universal Lending. Doni welcome to the show.

Doni Dolfinger: Thank you.

Interviewer: So, reverse mortgages, I mean some people have heard about them in the last few years and they know what they are, but just for the audience, refresh us.

Doni Dolfinger: It's a loan against a person's home that does not have to be paid back as long as they live there. It's not any more magical than that, people tend to make them a little more difficult.

Interviewer: So, do I have to own the house free and clear before I can get a loan against it?

Doni Dolfinger: No you don't, in fact many of our customers over the last couple of years have been using the reverse mortgage to come in and payoff what they owe currently on the loan, to eliminate that mortgage payment, so they have a reverse mortgage instead of a traditional loan, but there is no mortgage payment involved.

Interviewer: But there does have to be some equity involved, right?

Doni Dolfinger: Absolutely, absolutely.

Interviewer: Is there are percentage of that; you know, what's kind of a standard rule?

Doni Dolfinger: Oh! Good question, you know, it's not a flat percentage like on a traditional loan. On a traditional loan you might go in and qualify for 80% of your value, on a reverse mortgage, it's tied to the value of the home, the age of the youngest borrower, and the interest rate at the time they do the loan. So, it's different for every individual.

Interviewer: Okay, because I think one of the questions that consumer would say is well, how much money is going to be available to me.

Doni Dolfinger: Exactly, I think a good real sum would be about close to 60% right now based on our interest rates. The older the client, the more they qualify for.

Interviewer: Got it, alright, so is qualifying difficult?

Doni Dolfinger: It isn't, you know you can qualify for a reverse mortgage if you are 62 years of age or older, you live in your home as your primary residence, it has to be free and clear, or we need to able to make it free and clear with a reverse mortgage. Now, qualifying also does not entail the same criteria as a forward mortgage, so we are not looking to our customers to pay this back monthly, the equity of the home is what's going to pay us back.

Interviewer: Are there different types of reverse mortgages, or they are one standard kind of model?

Doni Dolfinger: In years past, we've had primarily reverses as a refinance product. Now we have a purchase program, which is wonderful, it allows people to come in and actually purchase the home with a reverse mortgage, and still have no mortgage payment.

Interviewer: I could see a consumer asking this question, is it possible I could get more than one reverse mortgage?

Doni Dolfinger: Only one at a time. So you might be able to refinance it at some point in time, and obtain another reverse mortgage, pulling out more equity in the future, but you can only have one at a time. That doesn't mean that you can't have multiple reverse mortgages over your life time.

Interviewer: What if you had separate properties?

Doni Dolfinger: If you have separate properties, you start to do the reverse mortgage on your primary residence.

Interviewer: Okay, so you've got to say that this is my primary and....that's the only one you can probably do it on.

Doni Dolfinger: Yes, and you have to be able to prove that, that's your primary residence. The burden of proof is on the homeowner.

Interviewer: Alright, last but not least, is it possible for the loan to become larger than the value of the home?

Doni Dolfinger: It is, that can happen, it doesn't happen on a regular basis, but we do see it, especially in the last couple of years, but if that were to happen, let's say my customer is moving out, they owe hundred thousand more than their home itself right now, FHA would have to pay that loss, this is a non-recourse loan, we cannot come after the kids, or their homeowner, FHA would pay out with a mortgage insurance that is factored into the loan.

Interviewer: Interesting, sounds like a good option, thanks great information. I appreciate it.

See more videos on reverse mortgages and real estate at BrokerIPTV.com

Is a Reverse Mortgage Right For You?

A reverse mortgage is a type of loan that allows homeowners, age 62 and older, to turn their home equity into cash, while still living in and owning their home.

Interviewer: Today, we're talking with Doni Dolfinger, a reverse mortgage specialist, with Universal Lending, and Doni welcome to the show.

Doni Dolfinger: Well, thank you so much, glad to be here.

Interviewer: In our previous segment, we have been talking a little bit about reverse mortgages and we were continuing that, but again for those not familiar with the term or what it is can you explain it?

Doni Dolfinger: Certainly, a reverse mortgage is simply a loan against a borrower's home that does not have to be repaid as long they live there. It's a loan without a mortgage payment.

Interviewer: Okay. Could they repay it, if they wanted?

Doni Dolfinger: Absolutely, and many people will use a reverse mortgaging with the intention of paying it back, and they can certainly make payments at anytime without any penalty.

Interviewer: Someone might be saying to themselves that sounds expensive, like it's going to cost me a high interest rate or something to that affect, if there is a lot of points upfront or, is that true.

Doni Dolfinger: You know, they are lot less expensive than they once were, yes in the years past, they were quite expensive, but we have done a lot to change that. In fact there is a new program called Home Equity Conversion Saver, or HECM Saver, and it's for people who would like to take less money upfront, but have less fees involved in the transaction, so it really helps people who are trying to preserve more equity for the estate.

Interviewer: Alright, walk me through this. Let's say my mom did a reverse mortgage and she passed away.

Doni Dolfinger: Right.

Interviewer: And at the time she passed, she owed a hundred thousand dollars on the house and maybe the house is worth one twenty, what happens?

Doni Dolfinger: You know, usually if my customer passes away the same thing happens that would happen on a normal transaction, even if they have just a traditional loan on the property. Usually they will sell the house by calling a realtor, listing the home with the realtor; the realtor will contact the title company. The title company orders the payoffs and at the settlement table, the check is then issued to the seller for what ever remaining equity is available.

Interviewer: Okay. If they were underwater, what would happen?

Doni Dolfinger: FHA would pay the loss, so FHA is who is on the hook for the balance to the mortgage insurance, it's not the tax payers paying that loss, if there is one its covered with the mortgage insurance

Interviewer: Alright, so now mom's getting some income in, and she is worried that it might affect her social security or it might affect her Medicare benefits.

Doni Dolfinger: Right.

Interviewer: She's worried about, is she is going to get taxed on it, what happens there?

Doni Dolfinger: You know, reverse mortgage is not considered an income by the government. So they are not taxed on it. We have customers who are on SSI, old aged pension, even Medicaid that could qualify for this program. But, if your mom is on Medicare and Social Security, they definitely don't have to worry about the funds from the reverse mortgage.

Interviewer: Alright, so is there anything that mom's got to watch out for?

Doni Dolfinger: You know, I think this is such a regulated program; we have regulations not only on what we charge but they have to go talk to a counselor to get it, to even obtain this type of a program or loan. So, I think the primary thing I would watch out for is if there's someone who is trying to sell them a reverse mortgage, and help them "Invest the money", that might be a red flag.

Interviewer: Yeah! Last but not least so somebody is saying okay, this sounds good this might be an option for me. How do they know if it's right for them?

Doni Dolfinger: First thing we are going to do is we are going to send them to a FHA counselor, we give them a list of counselors and they can choose which one they prefer to go to. The counseling is just designed to help the consumer with the questions to educate them with the pro and cons of the program, so that they can make an educated decision.

Interviewer: Great information. Thanks so much for being here.

See more videos on reverse mortgages and real estate at BrokerIPTV.com

Moving Ahead without the Tax Credit Incentives

Alison Brennan talks to us about how the tax credit effects home buying, as well as how the extensions affect sellers and buyers alike.  She also discusses opportunity that still exist and how to be creative without the government’s help.