Your Questions About Reverse Mortgage

Mark asks…

Is a Debt Consolidation Loan possible with a Reverse Mortgage already in place?

admin answers:

They are not related to each other in any way unless you are trying to secure your new loan with your home – which might not be possible.

Helen asks…

Do you have to show income for a reverse mortgage?

Just wondering about income qualifications are?

admin answers:

No income, you have to show that you have equity in your home.

Steven asks…

Is Interest accrued on a reverse mortgage tax deductable?

admin answers:

Not until the reverse mortgage is paid off. I’ve included a link that helps explain a reverse mortgage.

Donald asks…

How can I get out of a reverse mortgage????

Too late realized mistake of reverse mortage

admin answers:

You would not only need to pay off the amount you collected, there will prob be interest, closing costs, and maybe a penalty. Contact lender for your options.

Michael asks…

Any in for or advice for seniors on one fixed income needing a reverse mortgage or loan modifier.state CA?

Recently widowed senior of 56 years living in home with an adjustable loan at 7% interest and owing more than home is worth.

admin answers:

In order to qualify for a reverse mortgage you must be al least 62 and have substantial equity in your personal residence.
If you have further questions AARP is a good (and free) source.

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Your Questions About Reverse Mortgage

Sandy asks…

what happens to a reverse mortgage when someone dies and there is a will?

Need help…Here is the situation…nonworking Family member lived with mother who did a reverse mortgage on house and has now passed away, in her last will and testament she left the house and any money to this nonworking family member. There was no money and This family member has no money to live on. What do we do next? Do we need to get a lawyer, does the house have to go to probate? Does this family member have to sell taxes?
This is in the State of California. Any information will be helpful. thankyou

admin answers:

The house will have to be sold to satisfy the outstanding debt. Anything remaining goes to the benficiary- after laywers fees and such.

So, basically, they can not keep the house and can not sell the house on their own to have the money, the estate has to do it and the mortgage gets first crack at the money.

Usually, it is impossible to overturn in court unless you can prove that the family member was not of sound mind when the mortgage was taken out, but that might throw the will into question as well, which would be another headache.

Sorry if its not what you wanted to hear

George asks…

Is it legal to withdraw credit line from reverse mortgage if you have to walk away?

We have non recourse reverse mortgage and
we have to move out period. we want to use the
credit line to pay off credit card debit. Also if it is
a non recourse loan can their be a foreclosure.
We have excellent credit but now moving is
inevitable.

admin answers:

Ironic nick name
goldy locks

a reverse mortgage is money that goes to YOU every mo for
20 or more often 30 yrs. IT is repaid in a lump sum at the end
of the note.

U have to move out–you did not say why. Actually, it does not
matter. It does not matter who lives in the liened home.

U can use the reverse mortgage cash for ANY purpose.

Naturally, the lender will foreclose on the house-he is not giving
away money; the house is his collateral. But remember, that
note is not due for years; unless u have a very unusual one
that has a due date in less than 15 yrs.

William asks…

What do you think of reverse mortgage?

We see the commercials on tv encouraging our elder citizens to take out a reverse mortgage on their home. They will receive a monthly amount and not have to pay any more notes on the house. If they do this they cannot pass this property on to their children. Just wondering what others think about this.

admin answers:

They can pass the home on but it will have a very expensive mortgage they will need to refinance. For most people it isn’t worth the cost. You must be over 62 and the older you are the more you get a month. If you have a mortgage some goes to pay that off. The cost of the mortgage is about 15K plus you are borrowing every month and paying interest. You can only borrow on about half the equity. So if you were 70 and decided to take one you would have the cost plus what ever you borrowed. When you are 75 you might decide to downsize. When you sell the house you have to pay back all that borrowed money. You might not be able to buy a new home or might not sell for enough to pay off the debt and live on the money from the house.
If you are elderly and determined to stay in the home until carried out feet first and need money for medicine it might not be a bad idea.

Nancy asks…

Is there any requirement for reverse mortgage?

How long must you have owned the home to be eligible for a reverse mortgage. Can you pay off your deceased parent’s reverse mtg and then move in and apply for one using that equity?

admin answers:

If you are looking for a reverse mortgage to receive some much needed cash, you may want to look into a reverse mortgage wholesale loan. This is the perfect way for you to get a reverse mortgageagencies that sell reverse mortgage wholesale lender accounts. These agencies are the Federal Housing Authority, the Fannie Mae foundation and the Financial Freedom Cash Account.

Paul asks…

62 years old ,retired and a home owner with home owners insurance. Can she apply for a reverse mortgage?

For A 62 years old ,retired and a home owner with home owners insurance. Can she apply for a reverse mortgage loan or any other debt consolidation loan?

admin answers:

A reverse mortgage is good or bad based on the financial condition or situation of the seniors.

The primary requirement to obtain a reverse mortgage is that one or both of the seniors must be a minimum of 62 years of age.

If they are in a good financial condition and have planned well for retirement there is no need for a reverse mortgage.

A reverse mortgage is sort of expensive to obtain, so one of the first things you would want to do is find out the cost of your parents getting this reverse mortgage. You would also be required to get and pay for an FHA appraisal. All repairs to the house found by the appraiser will have to be repaired prior to the mortgage closing.

You might also want to know the amount of funds that would actually land in the seniors hand. We do know one thing all mortgages would be paid off, as well as any other liens found on the property, plus the expense of the reverse mortgage, so on a good day the seniors would wind up with approximately the difference of the appraised value minus any mortgages paid off, any liens and the closing cost in their hands.

They can receive this in one lump sum or monthly payments spread out over a period of time.

They no longer would be required to pay a monthly mortgage, they could payoff any debts that are owed, with the remainder of the funds being placed in a bank account of their choice.

The other part to this reverse mortgage is that the seniors will be able to stay in the house as long as they both are alive.

Once they are no longer with us the heirs of the seniors would have to decide if you wanted the house or not. If the heirs decide the want to keep the house then they would be required to pay off the mortgage company that gave your parents the reverse mortgage plus interest as with any other mortgage lien.

If the heirs decide they did not want or could not afford the house then the bank would take legal action to secure the property, such as foreclosure.

A reverse mortgage is an FHA product, therefore you simply have to locate a local FHA approved lender in your telephone book. You might also google reverse mortgage followed by the city in which you reside or where the property is located.

Before a reverse mortgage might be obtained the seniors would have to go through extensive FHA counseling concerning the reverse mortgage so they would understand exactly know the reverse mortgage work and the effect it would have on them either positively or negatively.

If qualified she may apply for a regular mortgage loan to consolidate her and pay her debts, as long as she is qualified with the correct credit scores, and is able to financially repay the mortgage loan.

I hope this has been of some benefit to you, good luck.

“FIGHT ON”

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