Unfortunately, as you say you are underwater on your existing mortgage, it is unlikely you will be approved for a reverse mortgage. One of the eligibility requirements for a reverse mortgage is that homeowners with an existing lien against their home must be approved to release an amount that can entirely pay the loan off. In general, borrowers can access 40%-60% of their home value through a reverse mortgage. This is because you are not given access to the full amount of equity in your home - there needs to be a cushion for accruing interest over time and the risk of home values dropping. If there is any way you can reduce your mortgage balance, please do call us.

If you have any more questions about how reverse mortgages work, why not order a copy of our free educational DVD. It features Former Senator Fred Thompson and it's available via the link or phone number provided.

Disclaimer: The response above is not intended to be anything other than the educated opinion of the author. It should not be relied upon as financial advice. America Advisors Group recommends speaking directly with an AAG Reverse Mortgage Professional regarding your specific situation and needs. Please call 1 (800) 466-0572 to receive AAG's information pack with a FREE DVD and Brochure featuring Former Senator Fred Thompson.