Notify your reverse mortgage lender immediately if your home is in foreclosure and the application and approval process can be finalized in two weeks. No Credit Hassle with a Reverse Mortgage There are no credit requirements when being approved for a reverse mortgage. Homes that are in a foreclosure can be pushed through the process in order to be finalized before this legal action has been completed. Seniors with poor credit and even bankruptcy can enjoy the benefits of cashing out a portion of their home’s equity. Consumers in an active bankruptcy cannot enter into this type of mortgage until the case has been discharged. As soon as the discharge comes through, the reverse mortgage application process may begin. The reverse mortgage loan takes between 4-6 weeks for its final completion. Saving Your Home with a Reverse Mortgage A portion of the funds received from a reverse mortgage agreement must pay off the past due amount that initiated the foreclosure. Any liens or judgments must also be paid while leaving enough money in the equity account to fund the loan. Homes that are mortgage free or one that carries a small balance offer the most money that can be reversed to the homeowners.

Read more here – Can I Get A Reverse Mortgage If My Home Is In Foreclosure?