Reverse mortgage. It’s been one of the most popular real estate search terms throughout the past year.

But what is a reverse mortgage, exactly?

Well, first, you must be at least 62 years old to be eligible for what is often referred to as a “lifetime mortgage.” Secondly, you must agree to stay in the home for as long as you live.

In return, your lender will give you the money to pay off your mortgage. And you don’t have to pay it back — not a single penny — while you are alive.

Here is the catch: If you “move, die or sell the home, the mortgage will need to be paid back in full,” according to the Sun Sentinel.

Curious to know if a reverse mortgage is right for you?

Follow us after the jump to learn about the pros and cons of a Federal Housing Administration-insured HECM loan (reverse mortgage):

The pros:

• Bad credit is okay
• No monthly payments
• No income requirements (must be able to to prove you can afford taxes, insurance, etc.)
• Stay in the home as long as you live without fear of repayment or foreclosure
• Lender can collect only the value of the home

The cons:

• High up-front costs
• Hard to understand
• Could deplete all home equity
• Could impact inheritance/legacy to children

To learn more about a reverse mortgage, eligibility requirements and how to go about finding a legitimate housing counseling agency near you that can help, click here.

Be careful — there are many reverse mortgage “scams” and “experts” of which you need be aware!

Information and acronym overload is just one of many ways to describe all the home-saving programs currently huddled under the federal government’s Making Home Affordable umbrella.

Finding out which program may be best for you, as well as whether or not you qualify for it, can be an overwhelming experience. And if you’re in a tight spot like many of your other neighbors, struggling to meet your monthly mortgage obligations, you’re already probably way past the point of being overwhelmed.

MarketWatch.com has compiled a very helpful list of the various foreclosure, loan modification and short sale programs that are available today.

We’ve shared the most important information below, as well as direct links to the various websites where you can gather more information and request/download all the information you need to remedy your situation as quickly as possible.

Check it out:

Home Affordable Refinance Program (HARP): If you are on time with your payments but cannot take advantage of today’s lower interest rates because you owe more than your home is currently worth, HARP can help if your loan is held by either Fannie Mae or Freddie Mac, the two mortgage giants that touch perhaps half of all loans.

Home Affordable Modification Program (HAMP): If you are struggling to make your payments because your income has been curtailed or your interest rate has increased, you may be eligible to have the terms of your loan changed. The amount you owe must be less than $729,250, your loan must have been taken out prior to Jan. 1, 2009, and your total monthly housing outlay — principal, interest, taxes, insurance and homeowner’s association dues — must be more than 31% of your current gross earnings.

Second Lien Modification Program (2MP): For owners who are having a tough time making their house payments because they have a second mortgage, this program offers a way to lower the payments on the junior loan when the primary mortgage is modified under HAMP. Under 2MP, which is meant to be complimentary to HAMP and is somewhat more complicated than the other alternatives, the owner of the second lien and the company administering the loan on its behalf are given monetary incentives to reduce your rate, extend the term or possibly even extinguish the loan altogether.

Home Affordable Foreclosure Alternatives Program (HAFA): This program is designed to streamline two popular options to foreclosure, a short sale (he loan servicer allows you to sell the property for less than what is owed) and a deed-in-lieu (you voluntarily transfer ownership to the servicer with the understanding that foreclosure proceedings will be dropped). If you can no longer afford your home but want to exit gracefully and avoid the negative effects of foreclosure, this short sale program offers up to a $3,000 cash stipend to help you transition into more affordable housing. To qualify, you cannot be eligible for a trial loan modification, fail to complete a successful trial mod, or miss two consecutive payments during the trial mod period.

To read the entire article about the foreclosure prevention programs mentioned above we strongly recommend that you read the entire article on MarketWatch.com. It also goes into fantastic details about all the documentation and paperwork that you will need to collect to set the process in motion.

Good luck!

About three years, according to mortgage expert Dean Wegner in a recent article on ABC15.com. You can expect to wait the same amount of time if you filed for bankruptcy, too.

But time alone will not be the deciding factor.

On the contrary, a credit score of more than 620, as well as demonstrating verifiable employment for at least two years and having money in the bank (3.5 percent down payment), are also required.

Mortgage lenders are certainly more strict now more than ever, being careful to avoid another mortgage meltdown that has crippled the United States housing market the last few years. The good news is that even if you did get mired in a foreclosure, short sale and/or bankruptcy situation, there is light at the end of the tunnel.

It’s certainly not the end of the world … just a pit stop on the road to your next destination.

“Historic” is actually how CNBC describes the current mortgage interest rate situation, which is at 4.87 percent on a 30-year fixed loan.

That’s the lowest it’s been in 30 years.

Mark Zandi, chief economist at Moody’s, puts it into perspective:

“It’s the best time in our generation to buy. It may be the best time in any generation. Mortgage rates are so low and with homes prices down and lots of inventory, you couldn’t pick a better time to buy or refinance.”

The report indicates that the debt crisis in Europe is responsible for the great rates. Nervous investors are “flocking” to the “security of US Treasurys.”

How long will these once-in-a-lifetime rates last? Unsurprisingly, not long … about one or two months.

In fact, Lawrence Yun, chief economist for the National Association of Realtors, predicts that interest rates will climb back up to 5.5 percent “by the end of June if not sooner.”

To start your home search today click here. Foreclosure.com has the best real estate deals in your area — save up to 50 percent or more!

Remember, too, that Foreclosure.com also offers a host of mortgage resources such as calculators right here.

Finding the best mortgage rate is just as important (if not more) as settling in the perfect house.

That’s because the loan amount and correlating interest rate will determine the monthly payments that you will be obligated to make over the next 15, 30 or even 40 years.

Therefore, it’s always wise to get preapproved for a mortgage before you start your house hunt. This way you know your financial limits and don’t stretch beyond them when touring properties available for sale.

In fact, most real estate agents strongly recommend that you are preapproved before they start providing you with potential opportunities because it helps them narrow their searches.

One nice thing about mortgage shopping right now is the super low rates. However, we can all but guarantee that these rock-bottom rates won’t last much longer.

Strike while the iron is hot!

The March 2010 edition of Foreclosure.com’s free educational newsletter, “Investment Exchange,” is now available, which details everything you need to know about “Shopping for a mortgage.”

It is designed to get you familiar with your mortgage options so that you’re on the ball when you do find that once-in-a-lifetime property. You’ll also get handy tips to make your credit squeaky clean before you apply.

So check out “Shopping for a mortgage” today so you’re in a position to get the best terms possible.

To read this month’s free educational newsletter from Foreclosure.com CLICK HERE.

Three years ago, just as the housing market was beginning its rapid descent, we purchased a perfect three-bedroom home in South Florida for $325,000.

It was in a great neighborhood. Excellent school district. We were set.

At the time it was priced right to sell ($379,000) — other nearby homes were hovering around the low $400′s. So we were thrilled when our “miracle offer” was accepted with no counters or questions asked. We celebrated the “steal of the century.”

Unfortunately, our joy didn’t last long.

Each year we helplessly watched as our home value continued to sink like a rock. We’re still not even sure if it has hit bottom — we’re too scared to look.  Last time we checked our home was roughly worth about $250,000, which is about a $75,000 hit.

Many homeowners today are in similar if not worse positions. We understand that. Still, that’s a lot of money.

And even though the value of our house has dropped significantly, our monthly mortgage payments remain the same. So, too, does our interest rate. We’ve tried to refinance, secure a lower interest rate at the very least, but no dice … we are too far upside-down to be considered.

We’ve got great credit. Pay our bills on time. And do all the things we are supposed to do. Yet, when we try and somehow improve our situation to compensate for the lost value in our investment, we hit dead ends.

It’s frustrating, making people think how it’s possible banks, lenders and the federal government are seemingly bending over backwards for those actually deep in (or possibly feigning) distress. Meanwhile, the “good guys” have few if any options available to reward their  hard work.

Bloomberg.com explores this issue today, revealing how underwater homeowners have resorted to “strategic default” in response to the current housing crisis. This is when homeowners stop paying their mortgages while remaining current on other debts. It’s a practice that rose 128 percent (588,000 cases) compared to last year and represents a small percentage (4%) of all underwater homeowners.

Of course, there are other options, including selling the home for a huge loss (and paying the difference), staying put until the local market corrects or short-selling the house.

The latter option appears to be the best. Short sales are a great solution when it comes to short circuiting the foreclosure process. It’s typically a win-win all the way around under the circumstances.

We have decided to ride out the storm. It’s certainly not a “strategic” choice, but one that we think is good for us. We are in positions where we can afford our monthly expenses … for now.

But that could all change literally tomorrow. That’s just the nature of today’s complicated real estate beast.

This is a guest column. Therefore, the views expressed in this article do not necessarily reflect the views of Foreclosure.com and/or its partners.

“Making Home Affordable,” a $75 billion federal government-backed initiative to keep up to 7 to 9 million Americans in their homes by preventing avoidable foreclosures, may have an uphill battle despite its well-placed intentions.

Associated Press today passed along sobering news from a Office of the Comptroller of the Currency and the Office of Thrift Supervision report, which reveals more than 50 percent of distressed homeowners who had their home loans modified in the first half of 2008 “missed at least two months of payments a year later.”

Job loss is the key culprit: Unemployed homeowners simply can’t afford their mortgages — even if they are cheaper — because the cash flow is either not what it once was or has ceased altogether.

It’s important to note that similar “redefault” statistics for “Making Home Affordable”  are not yet available. And they probably won’t be for several months because the plan was recently introduced earlier this year.

The good news is that the housing recovery program is still in its early stages — only 12 percent of eligible borrowers nationwide (360,000) have taken advantage of the opportunity thus far. More folks will hopefully follow suit sooner rather than later.

In addition, jobless rates were down in most metro areas in August, according to recently-released data from the Labor Department. It’s a promising sign, but there is certainly a very long road ahead.

To learn more about Making Home Affordable and determine whether or not you can refinance your home mortgage click here. The official “Making Home Affordable” Web site can be found right here.

Right now there are so many great discounted properties available throughout the nation that you can essentially “steal” them for dirt cheap prices.

On top of these amazing deals, as well as the limited-time tax credit for first-time homebuyers that expires on Dec. 1, 2009, banks are still offering fantastic mortgage rates to encourage spending.

In fact, rates recently dropped to less than 5 percent!

Mortgage applications have skyrocketed thanks to this “perfect storm” that has created ideal homebuyer conditions.

How can you not be tempted to capitalize on these opportunities of a lifetime?

All these facts add up to one major point: for the right property, the numbers make good, solid “cents” right now. There has literally never been a better time to get into distressed property investment.

The September 2009 edition of Foreclosure.com’s free educational newsletter, “Investment Exchange,” is now available, which is all about helping you figure out how to get your hands on the money you need to get started in distressed property investing.

We touch on everything, from funding options to tips for raising your credit score. We also cover how you can accomplish it all without experiencing any of the headaches that can often deter first timers.

So get ready to learn everything you need to know about financing your dream home at the best possible terms! Check out “Fund the Deal” today and get going before it’s too late — remember the clock is ticking to lock-in the best terms and incentives!

To read this month’s free educational newsletter from Foreclosure.com CLICK HERE.

Here’s your chance to get the inside scoop on highly sought-after FHA loans to secure the best mortgage interest rate possible on your next home investment.

Cathy McDaniel — a consumer advocate who has more than 15 years in the industry working banks and lenders — will reveal how to secure a home loan/refinance from the Federal Housing Administration (FHA) and lock-in the best possible interest rate and mortgage terms available.

The educational session is available to watch LIVE online during a 90-minute money-saving presentation scheduled for Thursday, July 30, at 7 p.m. ET. To register now for “How to Get an FHA Loan” click here.

An FHA loan is an attractive alternative to a traditional loan because it will put money back in your pocket each month, lowering your monthly mortgage commitment significantly. The long-term savings are even more mind-boggling.

Here are just some of the topics that Cathy will cover:

• FHA options and features
• FHA loan qualification and criteria, calculations/Ratios and MIP
• FHA appraisal, qualifying the property and home inspection
• FHA loan programs, escrow holdback and 203 (k) Streamline
• FHA refinancing, loss mitigation and down payment assistance

This is a great opportunity to learn all the key points, options and FHA program qualifications from an industry expert to maximize your (or your clients) mortgage instrument. Be sure to tune in!

Register for “How to Get an FHA Loan” before it’s too late. Spots are limited and filling up FAST! CLICK HERE.

Webinars are LIVE educational sessions that let participants see, hear and interact with real estate experts right from their personal computer screens. In fact, Webinars are driven in part by visitor feedback and questions that are posed during the sessions. For more information and course offerings click here.

… with an estimated 20.4 million homeowners in the United States who now owe lenders more than their homes are worth because of the across-the-board decline in home values, according to a recent study from Zillow.com:

” … the number of borrowers who are underwater climbed to 20.4 million at the end of the first quarter [2009] from 16.3 million at the end of the fourth quarter [2008]. The latest figure represents 21.9 percent of all homeowners, [which is] up from 17.6 percent in the fourth quarter and 14.3 percent in the third quarter.”

Obama’s plan, which is often referred to as the “Making Home Affordable” program, is intended to “stimulate” the housing market and reduce interest rates/loan amounts for homeowners struggling to meet their monthly mortgage obligations.

Typically, homeowners who are “underwater” are not permitted to refinance their mortgages, but now the has changes for loans backed by Fannie Mae and Freddie Mac under the new initiative.

To learn more about Making Home Affordable and determine whether or not you can refinance your home mortgage click here. The official “Making Home Affordable” Web site can be found right here.