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The Alaska legislature recently passed a bill which makes it easier for Alaskans to live in financial security by borrowing on the equity built up in their homes. The new law, effective August 26, allows Alaska lenders to give a special loan, called a reverse mortgage, or a negatively amortizing loan, to those who have equity in their homes.

This is good news for seniors, who may have built up home equity but who do not have liquid funds available to survive. The reverse mortgage concept allows a lender to loan funds using the home equity as security for the loan. The borrower receives a monthly check from the lender which can be used to pay off living expenses. The borrower need not repay the loan until death or until the home is sold, as long as the home continues to be the primary residence of the borrower. Under the new law, a lender cannot evict the owner of the property as long as the property tax, hazard or fire insurance premiums are paid, the property is kept in reasonable repair, and the owner has not vacated for over a year.

If you have questions regarding the new law, it may be wise to speak with a mortgage lender and/or an attorney regarding your concerns. The law office of Pradell and Associates provides low cost legal consultations regarding issues involving personal injury, criminal law, divorce, custody, property division, and support. Attorneys can recommend a course of action which can assist you in resolving your case. A helpful staff provides prompt, courteous services to meet your legal needs. Give Pradell and Associates a call today, at (907) 279-4529-- (279-4LAW). Articles on Alaska law topics and the firm's newsletter are accessible on the Internet at: Http://www.alaska.net/~pradell. This article is not intended to provide legal advice and should not be relied on for that purpose.