In the real estate lending world there is typically something called a “Pre-Approval” letter or a “Pre-Qualification” letter. The purpose of these letters is to communicate to the parties in the transaction that the borrower (whoever is trying to get financing), based on preliminary information supplied to the lender, will successfully obtain funding of the mortgage for which the borrower has applied.
A disaster loss is a loss attributed to a casualty occurring in an area declared by the President of the United States to be a disaster area entitled to federal assistance. Thus, in order to qualify as a disaster loss, the loss must also qualify as a casualty. On the flip-side, however, a disaster loss is not a prerequisite to “casualty” status.
Brexit is an abbreviation for the term “British exit.” On June 23, 2016, a referendum was passed by voters in the United Kingdom approving the exit of the United Kingdom from the European Union. This disassociation from the European Union (“EU”) was met with a great deal of excitement from around the world, in addition to uncertainties concerning the impact on financial markets as a consequence from “the exit.” Market reactions toward the event were in some cases severe.
In our May 2015 newsletter article “Understanding Reverse Mortgages,” we presented an overview of what reverse mortgages are all about. We described briefly some of the features of a reverse mortgage: how a reverse mortgage works, how borrower eligibility works (and what it takes to qualify for a reverse mortgage), and we touched on some of the benefits afforded to a prospective borrower by a reverse mortgage. The purpose of this article is to provide further detail on reverse mortgages and how they aid a borrower in reaching their financial goals.