CANHR Offers Free Family Equity Lending Guide
CANHR, a statewide 501(c)(3) nonprofit senior advocacy organization, announces the release of its Home Equity Protection Program Toolkit, a free set of tools designed to help low-income seniors protect the equity in their homes. The Toolkit includes a Family Equity Lending Guide, a “do-it-yourself” alternative to exorbitant reverse mortgage loans.
This holiday season, as families gather to celebrate, some will find their aged parent in financial distress or unable to meet the costs of daily necessities. This is the perfect time for seniors and their children to open up and have adult conversations about what is really going on financially.
Senior homeowners needing access to cash and contemplating reverse mortgages will be relieved to learn that there is an alternative that is less expensive, less risky, and that allows for more flexibility. CANHR offers a new Family Equity Lending Guide, outlining the elements of a family equity loan, where family members or loved ones make a series of low-interest loans to the senior in exchange for an equity position in the home. This is a private arrangement among family members, cutting out the banks and allowing seniors to be sure that their loved ones can continue to live in the home long after they have moved out or died. Unlike reverse mortgages, these loans won’t be compounding with high origination costs; nor will they be subject to default for failure to pay the commercial lender insurance and mandatory ongoing maintenance of the property.
CANHR’s Home Equity Protection Program (HEPP) is a project funded by the State Bar of California to prevent financial mortgage scams and safeguard the homes of California’s low-income seniors. CANHR’s Guide on Inter-Family Lending describes a lower-cost, more flexible alternative to commercial reverse mortgage loans. This, along with other information about CANHR’s Home Equity Protection Program can be found HERE (PDF).