Your Questions About Check My Mortgage Loan

Mandy asks…

Mortgage loan, while running your business?

I have a corporation and I’m the only person working.

I have not cut myself a paycheck, and this is my first full year working for my company. My question is how do I prove my income to the lender? If the only way to prove my income to the lender is by paycheck or pay stub can I cut myself a check from the beginning of the year and how will IRS react to it?

admin answers:

You use your income tax returns. If you show no income there you will not be getting a mortgage.

Helen asks…

credit and mortgage loan?

i recently tried to check my credit ans it says i took a mortgage loan out in 1998 but i never di how do i find out what is going on?

admin answers:

Actually the exact same thing just happened to me 2 days ago. I had to send in a request to find out how that happened. Apparently someone took a mortgage out in my name in 1998 also.

Laura asks…

Do Mortgage lenders check credit scores from all 3 bureaus or do they check from any 1 bureau randomly?

My wife and I will be applying for a home loan soon and between 6 total scores, we have 4 which are above 680 and 2 that are hovering just under 600. Will the lenders take the middle score, an average, or simply select a random score?

admin answers:

The majority of them look at all 3 scores and then consider the middle score to be your score. (middle score per person, not the two middle scores between both you.)

However some lenders DO look at only one. I jsut bought a house through bank of america with more than 20% down and they only pulled experian– which was a surprise.

Just ask them their policy. It’s not a secret.

And if your’e saying you both have 2 high scores and 1 drastically lower one, find out why– you might need to dispute some info.

John asks…

Can I refinance a mortgage I have just started?

I have checked my mortgage papers I have found that I can pay the loan off at anytime, so I was wondering if the refinance companies would refinance a new loan?

admin answers:

Sure you can, but the fees may be more than you would save in lower interest. You could end up paying $4000 in fees and if that takes more than three years to recoup it might not be worth the expense.

Susan asks…

Should I pay my mortgage off quicker or should I save the money?

Im closing on my first house next week. My husband and I are both 30. I checked I mortgage caculator and found out if we make a payment of $3500.00 1 x a year in addition to our regular payments then we will pay the loan off 10 years earlier. Is that a good thing to do with our money or should we be putting it into some sort of stocks for retirement.

admin answers:

While paying off the mortgage early would be a good thing, you should also put money into retirement.

You can still pay your mortgage off faster by paying as little as $10 extra every month earmarked for principal. You don’t have to have a big lump sum payment

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Your Questions About Reverse Mortgage

Mary asks…

Where can I get the best Reverse Mortgage loan?

I get a lot of offers in the mail since I looked into it.

admin answers:

I found this website for you on that topic. Seems to have links to the best Reverse Mortgage lenders:

http://reversemortgageresource.blogspot.com

Sandra asks…

how do you get out of a reverse mortgage? My grandfather has one on his house and is gravely ill.?

What can we do to reverse things prior to his passing?

admin answers:

He likely is not in any shape to get a new loan, he will not qualify.

The only way to get out of the reverse mortgage is to repay it in full. There should be statements available. Showing how much he was given.

Paul asks…

my husband is 65 and I am 54. If we went with a reverse mortgage, what would happen if my husband died before?

Our only income is from Social Security. Including taxes and insurance our house payment is nearly $900.00 a month. We really don’t have any equity in our home since price went into the bucket. We will never own our home. Any information or guidance?
W are considering a reverse mortgage.Our mortgage is too high. We can not refi because debt to income is too high.

admin answers:

Reverse mortages are one of the worst financial mistakes a human being can make.
Only next to buying a time share.

If you have no equity, the bank isn’t going to give you anything each month.
They can only give you what you have in equity back over the years.
Google “reverse morgages complaints”
/

Sandy asks…

whats your thoughts on reverse mortgage for senior citizens?

My dad thinks he might want one are they really a good idea?

admin answers:

My in-laws have recently acquired a reverse mortgage and it is providing them with extra income every month. You can either draw out the whole equity at one time or take it in monthly payments.

Be sure to read all the fine print regarding who ever your father deals with.

An as to “them getting the house” well that is not true.
Here is how it works regarding any heirs:
When you sell your home or no longer use it for your primary residence, you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. None of your other assets will be affected by a reverse mortgage loan. This debt will never be passed along to the estate or heirs.

Hope this answer is of help to you
LEGAL DISCLAIMER: The answer provided here is intended for informational purposes only. It is not intended nor presumed to be legal counsel or professional legal advice

Lizzie asks…

Is a reverse mortgage a good loan if my house is paid off?

And who issues them besides HUD?

admin answers:

It can be if you are either struggling financially, or simply want to have more funds to enjoy retirement.

A “reverse” mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. No matter how this loan is paid out to you, you typically don’t have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older. More information about reverse mortgages can be found here……

Http://reversemortgageresource.blogspot.com

________________________

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Your Questions About Reverse Mortgage Lenders

James asks…

Do you have to have permission from lender to add a name to a deed creating a joint tenancy? (Floroida)?

My friend was talked into adding her boyfriend to her deed and creating a joint tenancy. He makes no payments and has no equity in the property. There is a mortgage on the property and permission was not obtained from the lender before this was done. What can she do to get this reversed or is it even a legal deed in the first place since the lender is unaware of it and did not grant permission to do it.

admin answers:

He owns half the house now, including half the equity. She gave it to him. The deed is legal, what the lender will do is call the mortgage due, she is going to have to refinance.

Joseph asks…

Where does my grandmother’s house stand in the foreclosure process? How long until eviction?

Hello. I live with my grandmother in a house that had a reverse mortgage done to it a few years back. It was done under my grandfather who passed away in 2008. Usually when the borrower (my grandfather) dies the loan has to be repaid in full, but nothing has ever been repaid except property taxes. To date, me and my grandmother have been living here without hearing a word from the company or lender. This changed in mid-December 2010 when foreclosure papers arrived.

My county’s (Miami-dade, Fl) official website lets you track down docket information for cases online. I have a snapshot of the case dockets (aka a summary of the case) which you can see by clicking the link below. I just wanted someone to more-or-less translate the status of the house by looking at this information. Exactly where does this house stand in the foreclosure procedure and ‘how long would you say we are going to be officially ordered to leave from today?’ I think it was about one and a half to two months ago that a letter arrived saying they were trying to find someone to represent the interests of the house because the foreclosure papers came for “unknown heirs and tenants.”. Here is the snapshot of the dockets:

http://oi53.tinypic.com/2epkgh5.jpg

admin answers:

Stephen, have you spoken to other foreclosure specialists who just deal with foreclosures????????????? You and your grandmother need to hang in there. Knowledge is power. Here’s an informative article on tips to avoid mortgage defaults, and one of them includes what you are doing–realizing and not ignoring that you have a financial crunch, which you seek the fix:

http://yourhandymanzone.com/Your_Handyman_Zone_How_To_Pages_Real_Estate_Zone_Buying_Your_House_Mortgage_Default_Avoid_Foreclosure.htm

Get a hold of some foreclosure professionals. Hope you find this helpful, particularly on how to utilize resources available to get your mortgage modified or at least fixed to avoid any potential foreclosure, and that you get through your financial troubles.

Good luck!

.
Source(s):
The Internet. Just whatever is available online and what I have on my mind, including the inclusion of relevant sites, like the one cited above that came into existence from my efforts, which is intended to be useful. Helping people get the relevant info they want is great.

Maria asks…

If you’re a lender, please help with advice?

I have a $510k loan and at least $900k equity. Tried to lower payments through a loan mod, was advised by co. to stop payments. Followed their advice & got into a worse situation. It’s w/BofA original payment $2600 is now $3900. All bank did was tack arrears to mortgage so it’s like I started over. Now bad credit 670 & 655 because we were behind. We don’t want to sell the home or move. Got turned down for a reverse mortgage, BofA will not allow another loan mod or refi. Any other savvy options or suggestions? Help!

admin answers:

Sorry to hear that. I’ve heard similar happen to many people; how a bank can advice someone to fall behind on their payments is incredible to me. Bank of America wasn’t the only one. And if you are able to make your payments, you don’t qualify for a loan mod anyway, or any of the government programs.

You may already know this, but just in case. The reason why you may have been turned down for a reverse mortgage wasn’t because you weren’t qualified (assuming you are over 62) but because FHA currently has a lending limit of $625,500. It doesn’t matter what your income is or your credit score is. Since there are currently no private jumbo loans available for reverse mortgages for high-value homes like yours, the only reverse mortgage program available is the FHA HECM. Unfortunately, because of the lending cap, any dollar over $625,500 that your home is appraised at is not given credit. How much you qualify for in a reverse mortgage depends upon the age of the youngest borrower (the older you are the more money you get), but only up to that cap. So while your home has a lot of equity, FHA only “values” it at $625,500.

That is why sometimes a younger spouse is removed from title when there is a large age gap between spouses. By using the age of the older spouse, they are eligible for more money. Not something recommended, but it is an option depending on your particular situation, if keeping the house is what you both want to do. Definitely something you want to discuss with a lawyer to protect the younger spouse’s interest.

But you can still do a reverse mortgage, if you bring money to the table at closing. I don’t know how much money you are short. Hopefully you were looking at the fixed rate product, which offers more money than the adjustable program, and can be found for as low as 4%. Some folks have other resources that they can sell or can access to bring money to the table, e.g. Sell investment property, a car, stocks, life insurance, gifts from family or friends, etc. I don’t know if this applies to you or if you are aware of it. The lender will want to document your source of funds to make sure it qualifies. Once you do the reverse mortgage, then that monthly $3900 stays in your pocket and no one can kick you out for non-payment of your mortgage. You will still have to pay your homeowner’s insurance and property taxes. Just mentioning it in case you weren’t aware. Good luck!

Daniel asks…

Will you write me in as POTUS if I promised to somehow stop this Wall Street bail out?

I would let the chips fall where they may and not reward bad investment, bad management and poor judgment on the part of mortgage holders and lenders at the expense of the American taxpayer and their children and grandchildren. Also curb and reverse the tide of illegal immigration by making it a felony and putting violators to work building the border fence that will eventually keep them out when they are returned to their home country. Use any form of energy at our disposal including but not limited to, wind, solar, tidal, hydroelectcric, methane, hydrogen, domestic oil, natural gas, coal and nuclear. I would work as quickly as possible to get our troops out of harms way in Iraq & Afghanistan by quickly bringing both nation’s armed forces up to strength for the task of defending themselves. Back to the financial meltdown for just a minute. 75% of people calling the Capitol Hill switchboard have asked Congress not to bail out anybody. This country doesn’t need Wall Street to survive. Wall Street has made it clear over the last two years that they need us more than we need them. Yes, we probably would have to endure a two to three year hardcore recession, but that would be nothing compared to the ten to twenty year depression that will ensue thanks to this goliath government bail out of $700,000,000,000 that is not even including the over $300,000,000,000 that has already been spent to bail out Freddie, Fannie, Bear-Stearns, and other failed small institutions over the last year. I also promise to not attempt in any way to change the law as it stands right now concerning any of your civil rights and would only select Supreme Court Justices that were true moderates. They would have to go through the most intensive vetting process ever seen to even be considered to a long list. I would do everthing in my power to get all political parties to start working together in a bipartisan manner for the sake of this nation or would actively support third parties that showed they would do so. So how about that write in on the first Tuesday in November, no chance huh?

admin answers:

Sorry.

Try running on for Mayor of Chicago on the Mrs. O’Leary ticket.

“Sorry, I’m not spending all that overtime to put the fire out. Mrs. O’leary left the lantern in the barn, she ought to do it.”

Helen asks…

Verge of foreclosure… need help on reversing this.?

In March 2005 we moved into our home. At that time we were w/ our starting finance company — which was great. Then the loan was sold (the 1st part of our mortgage) to CountryWide. In April 2005 my husband was diagnosed with epilepsy and thus lost his job because of it. Had enough savings to get through a few months of mortgage payments and in Sept the savings ran out which was going to be used for taxes but this money was not due until June, unfortunately due to the circumstances we were forced to use this for Mortgage payments. Attempted to make payments for the last 9 months but they refuse them stating all of what is due or nothing and let it build up. We rec’d a foreclosure notice in the mail in Jan. 2006. The Foreclosure finalization is 8/30/06. I have put in complaints with the FTC and the state Consumer Credit Agencies hoping to get answers to this predatory Lender. Any other ideas? Are there any real estate lawyers out there that can help? We need to reverse this asap!
Please only respond if you are :

A current broker, lawyer, or experienced in this field.

Thank-you.
Also an interesting site:
http://www.countrywidehomeloansucks.com/new_page_2.htm
OH and we are NOT selling, moving, renting or otherwise . We have an attorney now that will be running a counter suit through predatory lending laws, and conspiracy. There are a lot more details.

If there are lawyers that wish to respond to this and your speciality is Real Estate Law contact us!!! We are in Ilinois.
We are not going to move… we are not willing to sell our home.

admin answers:

Contact ACORN immediately. They are a non-profit organization that includes in it’s mission to help, act as a homeowner advocate to ensure lenders act fairly and legally when it comes to this whole process.

Here is the link to their offices by state. Call the one as close to your city/county as possible: http://acorn.org/index.php?id=2593

Here is the link to ACORN’s home page: http://acorn.org/index.php?id=2716

Prepare and organize all of your notes, receipts, call logs, correspondence and make time to meet with them as soon as possible.

Also, contact non-profit entities, starting with your local United Way, and your local HUD office. They have contingency plans to help families facing foreclosure. Sometimes there are funds available to help buy you time to prepare to…List your home for sale….and with a well-known and national firm. If you are fortunate enough to find the assistance, you can always cancel the listing.

Be realistic. Make a list of all of your expenditures and take that and your receipts to the nearest HUD-approved credit couseling agency. Find ways to stretch your income. For example, there are non-profits out there that oversee shared housing/roomate programs for many cities/municipalities across the U.S. They do the background checks and match up host families and tenants. If you have children and a daycare expenxe, perhaps you can do a trade with a college student looking for a chance to tutor and sit in exchange for housing. Maybe even a nursing student.

But be realistic and start the sales process for your home. You can always take the proceeds and get something more within your revised budget. You don’t want a foreclosure on your credit. This will make it nearly impossible for you to purchase a home/apt/condo anytime soon. Worse case scenario, you wait too late to list and take less than owed, and the lender then either looks to recoop the difference directly from you or writes it off and gives you an earned income statement for the difference that you then have to claim as earned income on your taxes for this year.

Please think long and hard and crunch the real numbers (start today making a list of where EVERY dollar goes, regardless) if you are even remotely considering refinancing as a solution. From what you wrote, refinancing will only set you up for a harder fall and cost you even more money…especially upfront…and this is money you need to prepare to relocate.

Call ACORN, the HUD-approved credit counseling agency and your local United Way; and they can better analyze your situation explain all your options to you and direct you on a best-case scenario path. My heart goes out to you but the time is now to act. Delaying makes things worse and wittles away your options.

God Bless you and your family.

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Your Questions About Reverse Mortgage Lenders

Daniel asks…

heirs and reverse morgtage upon death of home owner?

Is there any law when the heirs of a home with a reverse mortgage loan don’t let the lenders know borrower died and continue to receive the monthy payments and live in the house.what is the punishment

admin answers:

That would be rather stupid. Why wouldn’t they just sell the home, and then get a lump sum for the equity?

A reverse mortage is just a loan against the equity, so they are just borrowing against their own money, and then paying interest on it. Reverse mortages have fixed terms as well, even if the person who took out the loan when ther term expires, then have to pay the mortage back in one lump sum, usually by selling the home.

Joseph asks…

capital gaines taxes and no money will be made from the sale of our fathers home?

no profit will be made from the sale of our fathers home 1ST mortgage and 2ND ( some kind for reverse mortgage ) has to be repaid to lenders , Brother says we have to pay capital gains taxes . I know he is full of it ! He also says we don’t have to repay the 300.00 2ND ( reverse mortgage ? that paid my father 5,000 each month for 3 years ) and for 6 months that my brother cashed anyway after Dad died

admin answers:

Whoever is the executor of your father’s estate should be using an estate attorney to advise him/her on these matters. You won’t get informed advice here. However, any taxes due on the estate’s assets are paid for by the estate prior to final settlement. Heirs are not taxed directly.

Susan asks…

A lot of people think, to take some of the spotlight off of Barack Obama?

A lot of people think, to take some of the spotlight off of Barack Obama, that John McCain will announce his vice presidential choice this week. And most think it’s gonna be Mitt Romney. See, I don’t know. You know, when Romney and McCain stand together, doesn’t it look like one of those slick Countrywide lenders trying to trick your grandfather into reverse mortgage
what do you think?

admin answers:

I think most Americans are going to reject McCain/Mitt and their lobbyists friends.

Richard asks…

How do reverse mortgages work, in simple terms?

I must be stupid or something, but I’ve been reading about reverse mortgages and I just can’t seem to understand the concept.

My boyfriend’s dad just decided to do it. He has some mental illnesses and tends to get taken advantage of, particularly in regards to money. Unfortunately his wife passed away last year. Essentially, what is a reverse mortgage and what does that mean for my boyfriend (in simple terms, please)? Why are you given money? What’s in it for the lender? Will the house still go to my boyfriend if his father passes away? Does this cause you to go further into debt?

I believe he bought the house 25 years ago for $80,000. I estimate it’s worth $120,000 now. Pretending he still owes $30,000 for it… what does that situation look like?

admin answers:

My peers are partly correct.

A Reverse mortgage is exactly what it sounds like; instead of the
borrower making monthly payments to the lender after getting
a lump sum payment……the lender lends the borrower a fixed monthly payment. NO payment is due to the lender till the
end of the mortgage when either…….
The borrower has died and the estate does not want the house
so the lender forecloses.

Or……….the insurance if there is any, pays back the
lender and the house is debt free to the estate.

Or, if the borrower lives long enough, at the end of the
mortgage life [loan], he needs to re-finance
the home so that the lender is paid back.

Mandy asks…

How often does Soc. Sec. reverse a “favorable” decision?

We receive disability.

My mortgage lender goes “Oh my, your case is reviewed in a mere two yrs instead of three yrs!!”

“OH MY!” indeed!!!

Am I correct to fear that they may reverse my case? Wouldn’t logic conclude that a reversal of the original decision (by a judge) was “wrong” and that I would be responsible to pay back money from like fraud or something?

It’s not fraud.

I’ve owed (and went bankrupt) over $20,000 medical bills. I’ve been institutionalized at 2 times for over a month each, and once for a week (on a few different hospital stays.).

I’m trying to buy a house. should I use my $19,000 settlement for a $19,000 problem fixer upper house, or should I resort to making payments -like most grown up adults tend to do- for the rest of my LIFE?! Put down payment on a $60,000 house? I fear losing my source of income (disability)!!!!!!!! I could have a no payments need problem house. (is it a “problem”? I don’t know. I’ll need the structure guy, the pest control official, and the septic Environmental healthy guy to deem the place “livable” … ) anyway, believe it or not, the cost would be the same :

$44,000 (if you add the potential problems: new roof expense 12,000 $ in 2 yrs, in 3 yrs maybe new septic at $10,000) or should I buy a
“perfect” $60,000 house With a new roof already on it? I put down my $10,000 or $19,000 and get $6000 back from the Gov Obama house stimulus (yes I qualify. I had to make a lot of phone calls, as I do not even FILE taxes, but Yes, I CAN file a “tax amendment” to receive back the gove. $6000 on my $60,000 house)

do I need to fear losing my disability claim?????

I’m Manic Depressive Bi Polar…. documented. It will never go away… but… I have sporadic periods of work history and NOT so good work history! I’ve even worked (what some people call “high stress”) high responsibility bank teller jobs. I was the “assistant job set up person” in a factory (by default. None of the older gentleman wanted to learn the computer.I’m young. I’d love to learn the cpu.).

what are your thoughts on this?

(I’m not going to fix the roof myself, I’d hire someone.) but you know what, that $60,000 new roof house will not be so “new” in 30 yrs. I’ll have to replace it in 30 yrs!!!!!!!! Good Grief!!!!!!! Does this ever end?
I plan to pay $19,000 cash for the house, and save $800 per month towards the roof. In 1-2 yrs we could pay someone to fix it. Same for the septic, in the next 4 yrs we will fix that one. There are too many people living in the house, taht is the problem. A small woman and small baby will use less septic than three adults and a child currently there.

admin answers:

The problem you will run into is that if you buy a fixer upper, you take the risk of not being to qualify for a $12,000 loan for a new roof since you will also owe $44,000 for the loan of the house. It will be hard to qualify on disability for two large loans. You should go for a home that is as problem free as you can find it. Most people put down 20% when purchasing a new home. You also will have the occasional repair such as heating/air expenses and even replacing the units which costs around $3000. Then there is the hot water tank about every 10 to 15 years. Also appliances break down and need repairing. Then there is the plumbing when it goes on the blitz, and you will have the added repair of the septic tank.

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Your Questions About Reverse Mortgage Lenders

Donald asks…

Reverse mortgage and estate law?

My mother is looking into a reverse mortgage what concerns me is what happens to her estate when she passes will the lender have a lein on the house how can this effect willed property?

admin answers:

The reverse mortgages I have seen are non recourse loans- meaning that in a foreclosure situation the lender could take the house but not come back against your Mother’s estate for any shortage.

What seems to often happen is the parent borrows as much as they can on a reverse mortgage and is able to live in the house the rest of their life without making payments. They do have to pay insurance and property taxes.

When the die or move out to a retirement home then the mortgage has to be paid off. If no one pays the mortgage off then the loan company is allowed to foreclose on it and sell it for whatever they can get.

During the time your mother lives there without making payments the interest is building into the principal each month and the loan is getting bigger and bigger. So when she no longer lives in the house the loan will probably be so large that you will not be able to sell it for enough to pay off the loan. But any other inheritance would not be affected.

Lisa asks…

trustee wont sell home with reverse mortgage?

Dad passed away 3/7/2009 My brother the trustee will not let us sell the home . He is also cashing Dads equity funds that the lender are still sending. I do not want to take him to court. Till I have some inherantance . Then I will for all the money he took when Dad was alive. Brother had POA with access to all dads bank accounts

admin answers:

Call the lender’s servicing department and tell them your father died, give them your brother’s name and address. If he’s cashing the annuity checks, he’s committing fraud. If you know about it and don’t rat him out, you could be considered an accomplice. And you’re getting screwed because the interest on the reverse mortgage is mounting every day, and fees are being incurred. Your brother is messing with your inheritance.

He has to do something because once the person with the reverse dies, the loan is due.

In fact, all mortgages work that way. When the guy with the mortgage is no longer around, the estate must pay off the mortgage somehow. This applies even when there are other owners who were not borrowers. They have the same options in any case, using whatever money is available, selling the house and paying the mortgage with the proceeds (additional proceeds would go to the heirs) or if someone wants to keep the house and has adequate income and credit they may be able to refinance it into their own mortgage.

Once the bank knows the mortgagor is deceased, they will give you some time to make whatever arrangments, but if nothing is done after a reasonable amount of time, they will start foreclosure. In other words, you may think you can trick us if you don’t tell anyone what’s happened, but we will find out eventually and you may regret not being honest. “You” in the generic sense, not specifically you the person asking this question. My concern for you is that you know what’s happened and could find yourself in some hot water too.

If the lender is BofA, call 866-863-5224. They’re in Seattle, open from 7am to 8pm Pacific time. You’d probably call that number for Countrywide too.

Carol asks…

Does anyone understand Reverse Mortgage?

I have only one daughter. I have an offer for $56,500 from a lender. I owe just the same amount. I refinanced twice, so no equity left in the house. The letter says I won’t have to pay this back as long as I live in the house. What will happen when I die?

admin answers:

The money is repaid from your estate when you pass. Depending on the contract it could just be the house is forfeited an no other monies owed. I am surprised you received a reverse mortgage having refinanced, but it is done now.

Make sure the bank will let you sell for the amount owed. I doubt they will, it should be stated on the reverse mortgage.

Steven asks…

Paying off reverse mortgage?

My father took out a reverse mortgage several years before he died, my mother lives in the home. With the real estate market as it is now, the value of the home is probably not much more than the balance on the reverse mortgage.
My brother and I have cared for my mother for 6 years so far, and when she leaves the home, we do not want to have to come up with any additional funds if the place sells short.
Can we just sign it over to the lender so we don’t have to deal with the whole thing?
We are not concerned with financial gain from any inheritance, but neither of us are in a position to pay off this mortgage, or make up the difference.

admin answers:

The only way I would recommend prepaying a reverse mortgage is if your mom is very low income and is going to move into a subsidized senior apartment complex. In that case, it might be a good idea. Otherwise, I wouldn’t recommend it. For one thing, where will your mother live if you sign it over? Are you or your brother prepared to take her in or pay for an apartment?

For most reverse mortgages, the heaviest expense was upfront in the financing fees. You won’t get that back if you pay it off soon. If she passes away and the house value barely covers the reverse mortgage, then any assets she has in her estate can be used to pay it off, and if those aren’t enough, then that is the bank’s problem and the risk they took in giving your father the loan. You won’t be responsible for the shortfall.

It’s nice that you are helping your mother. But, her debts are not your responsibility to cover when she dies. It will come from her estate.

There are some specialists in elder law and reverse attorneys you may want to talk with for the specifics. Try this website for a referral www.benefitscheckup.org. Or, you may also want to contact the AARP and ask them for a legal aid referral.

Good luck.

William asks…

Is it really the fault of the lenders?

“Redlining”, in which mortgage lenders would refuse to grant home loans to low-income areas used to be common practice in the industry, because it avoided risk. With the Community Reinvestment Act (CRA), which was passed in 1977and revised under the Clinton and Bush administrations, reversed this trend. Lending institutions were coerced by the government to begin a practice known as “Reverse Redlining”, in which people who cannot afford houses are given loans for those houses anyway. Before we start blaming the lenders, why don’t we repeal the CRA?

admin answers:

That’s true. The government shouldn’t have encouraged such risky loans. The country would be better off today. Mainly, I guess it doesn’t matter at this point who is to blame. The problem needs to be addressed and quickly.

Even with all of the money that the government is going to throw on top of this fire, we have yet to see if it will be a fix or just a band-aid. I think the problem is far too complex to guess at the outcome. We will just have to wait and see what happens next.

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Your Questions About Reverse Mortgage Lenders

Nancy asks…

Regarding Reverse Mortgage, what is the pros and cons of HECM lenders vs. non-HECM lenders?

I have done a lot of research regarding reverse mortgage and I understand that this is much like “Payday Advance”. The overall interest including all the fees, etc. are substantial however, it is an opportunity to have the money now. I’ve own my house for close to 35 years now all paid up. It’s a comfortable place situated in a comfortable neighborhood. I don’t want to leave it and go to Belize where I can live on my social security alone. It’s the comfort that I don’t want to lose. If and when I’m incapacitated then I’ll land up in an old age home of sorts. My children are fairly well off and the inheritance left from the house may just cause trouble among them. So by augmenting my income now from this mortgage, I hope to gain a bit more quality and comfort of life. I fully understand the position many contributors endorsed. The math stinks overall. But I wish to enjoy life now. When I croak either way I become the loser. But thanks for the inout.

admin answers:

Money Magazine had a report on reverse mortgages.
They considered them one of the worst financial mistakes a person can make in a lifetime.

They suggested to sell your home.
Take the cash equity and buy a much smaller home or rent.

Are you sure you really want a reverse mortgage.
They are big money makers for the brokers – they can be very pushy
Keep your head on straight with them.

At age 80 – are you really going to want to be taking care of a home?
Cutting the grass, making repairs, fixing faucets.
Get a condo – and let someone else do all the work.
/

Charles asks…

Reverse Annuity Mortgage?

What are the risk factors associated with Reverse Annuity Mortgages from lenders‘ and borrowers’ point of view? Explain how they would affect lenders and borrowers

admin answers:

Every reverse mortgage I have seen has been an FHA program for older people and they normally choose to get all the money in one chunk. They are set up so that the owner never has to make a payment as long as they live in the house- but if they go to a retirement home they will need to sell the house and (because of the interest build up and maybe the weak real estate market) the seller might owe more than the house is worth. Again this FHA program is pretty good because it is a non recourse loan so that all the lender can do is take the house – they can’t file against you personally.

Robert asks…

How does a lender benefit from reverse mortgage?

Looks like, what I read tells me, the lender pays the homeowner roughly up to 65% of the home’s value, or up to $625,000

What is the benefit for the lender to put up such cash? Do they collect the house when the borrower dies? Or at any point? What must a borrow “violate” or “do wrong” for the lender to “win” (in comparison to traditional mortgages, where a person stops making payments and the lender collects his house).

What does reverse mortgage mean to a person’s heirs? Can they inherit the house? Or can the lump sum be inherited (and if they do, does the house go to the lender?)?
So is a typical reverse mortgage something like this?

a) Old Joe has a house worth $200,000
b) reverse mortgage lender offers him $130,000
c) when he dies, his heirs either allow the lender to have the house or pay back the $130,000 which their father took.
d) I’m not sure where the “interest” comes in? What does the borrow have to pay? Does he start making payments back to the lender the first month he gets his lump sum of $130,000 ?

admin answers:

My peer is correct. YOU seem befuddled about reverse
mortgages. They are not much different from regular ones.
Money is lent, collateral is put up and the lender earns
interest.

IN this case, during the history of the loan, the borrower
gets money. EVERY month. AT the conclusion of the
history of the loan–when the mortgage payments are due
to cease, the home owner [whomever that is at the time]
re-finances the home or sells it to pay off the lender.

A reverse mortgage can be from near nothing [4%] of the valule of the home
to 100%, it is all negotiable.

Ruth asks…

Who are the lenders for a “Program 69 Mortgage”? What states is this “Loan Program 69” availiable in the US.?

Better than a reverse mortgage it is specifically for seniors over age 69.

admin answers:

Dear ,

I was also searching for same thing couple of days ago and found this one  
http://yourloans.noads.biz

Regards,

Jenny asks…

Why don’t people realize that a reverse mortgage is a scam?

Sadly, large companies with big PR departments get away with expensive ads on television about the greatness of reverse mortgages and what they can do for you. The truth is all it will do for you is give you dribbles of money on your own equity while a lender has your money and just pays taxes. If you have paid off your house you can simply sell it and get all that money in hand. Don’t be scammed!
For those who are wondering about my credentials. I’m a successful real estate investor and I am well read on the processes involved. I simply want people to be aware of this. I expect a mortgage lender to say that this is a good thing. You are the people who are the scam artists.

admin answers:

And I suppose your better idea would be for the old people of america to just quit claim their homes to you instead and expect you to take care of them.

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Your Questions About Reverse Mortgage Lenders

Mark asks…

Where can I find a list of the best Reverse Mortgage Lenders?

admin answers:

Anyways, you can find some info and resources about reverse mortgages here including a list of the top rated lenders:

http://reversemortgageresource.blogspot.com

________________

Robert asks…

where can I get a list of reverse mortgage wholesale lenders?

admin answers:

National Reverse Mortgage Lenders Association is you are on business side. Http://www.reversemortgagepage.com if you are a consumer.

Sharon asks…

How can I find a Reverse Mortgage lender?

And how exactly do they work?

admin answers:

A “reverse” mortgage is a loan against your home that you do not have to pay back for as long as you live there. With a reverse mortgage, you can turn the value of your home into cash without having to move or to repay the loan each month. No matter how this loan is paid out to you, you typically don’t have to pay anything back until you die, sell your home, or permanently move out of your home. To be eligible for most reverse mortgages, you must own your home and be 62 years of age or older. More information about reverse mortgages can be found here……

Http://reversemortgageresource.blogspot.com

________________________

John asks…

Can a reverse mortgage lender foreclosee on a home while it is still in probate?

admin answers:

Yes, of course, if the estate is not paying them they have every right to foreclose.

Laura asks…

how do i find the right reverse mortgage lender?

admin answers:

Don’t even think about it! Negative amortization is NEVER a good idea. Trust me, i deal with people everyday that owe more than their homes are worth because of reverse lending, very low arms that are now coming due etc….

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Largest mortgage lenders.: An article from: Arkansas Business

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Largest mortgage lenders.: An article from: Arkansas Business

Comparing Mortgage Lenders

When it comes to mortgage lending, checking and comparing the different lenders is the most difficult task. There are a number of charges applicable though, for every step of the procedure involved. Mortgage packages include the opening and closing costs, the quoted rates and the interest applicable. It is necessary to investigate the Mortgage Insurance, credit and cash reserve, lock-in period and the floating interest, before making a final decision. Thorough research is very important because a small difference in the mortgage rate can make a huge difference to the monthly payment.


Listed below are some essential requirements of the procedure that should be looked into, before closing a mortgage deal:


– The current mortgage rates.

– The documents required for the approval.

– The opening and closing costs applicable.

– The initial application fees.

– The lock-in period.

– Rate of floating or fixed interest.

– The mortgage insurance.

– Total lender fees payable.

– Monthly payment.


There are two kinds of mortgages offered by the mortgage lenders. One is the Fixed Rate Mortgage and the other is the Adjustable Rate Mortgage. In Fixed Rate Mortgage, interest rates are fixed over a period of time. An ARM or Adjustable Rate Mortgage is a unique loan product, where periodic changes affect the interest rate. In this product, the interest rate, as well as the monthly payments, fluctuate over the period of loan.


The application fees are primarily charged to process the loan. You are required to pay this charge at the time of applying for the loan. Some lenders include the application fee in the closing costs. Usually lenders do not refund the application fee, if the loan is not approved or you suddenly opt out of the deal.


Lenders need to estimate the market value of the property, before approving the loan. You are expected to pay an appraisal fee to the lender, to take care of the costs involved in getting the property appraised. The appraisal helps the lender to decide on the amount of mortgage that could be approved. Factors like location, use, condition, income from the property, replacement value and current cash value affect the appraisal.


You should try to avail of at least three Good Faith Estimates from the mortgage lenders. They are only estimates and the actual amounts vary. Some lenders charge Loan Origination Fees that cover the costs involved in evaluation, preparation and submission of the proposed mortgage loan documents. One percent origination fee is equivalent to 1% of the loan amount.


Closing Costs include the amount paid to the state or local government and the cost of getting the mortgage. The amount paid to the local or state authorities includes, property taxes, transfer fees and recording or documentation charges.

The total cost of getting the mortgage includes the expenses borne for conducting the surveys, credit checks, title checks, loan origination, documentation and processing fees and insurance.


The Recording & Transfer Charges are the fees paid by the borrower to the government, for recording the transaction and transferring the property title. Last, but not the least, you should make queries about the terms and conditions. A mortgage could possibly be the most important and largest debt you would ever be paying back.

Joe Kenny writes for the UK Loan Store, offering applications for secured loans and also information on UK mortgages and other loan topics available on site.

Applying for Mortgage Loans

Are you interested in finding out more about mortgage loans?  You can get fast mortgage loans today without even having to give documentation of your employment or income tax verification if you put down 20 percent towards the purchases of your home.  This is called a “no doc” mortgage and is a great way to purchase a home if you are self employed and cannot verify all of your income. 

 

If you are self employed and making good money, mortgage lenders used to want two years of income tax returns before they would allow you to get mortgage loans.  This is not the case any longer.  Mortgage loans are now available for individuals who put down at least 20 percent of the cost of the house without them having to provide any proof of income or past income.  If you are self employed, a no-doc mortgage may be right for you. 

 

Mortgage brokers who specialize in fitting customers with the right mortgage loans for them will be able to find you the best mortgage loans to fit your needs.  Many people feel that because they are self employed or have bad credit that they cannot afford to purchase a home in this buyer’s market.  This is not true.  There are many mortgage vehicles out there that you can get, even if you have bad credit or a prior bankruptcy. 

 

Mortgage brokers want to make mortgage loans to individuals because this is how they stay in business. Because the housing industry is pretty much at a standstill throughout the United States, many brokers are looking for creative ways to market mortgages to potential buyers.  It is a buyer’s market because there are more homes for sale than there are people to buy them.  The imbalance of supply versus demand has caused the home prices to drop in some areas, while some are still holding their own. 

 

To apply for a mortgage, talk to a mortgage broker today.  Look around for the best rate in the mortgage as well as the least amount of fees.  Never forget that the fees are negotiable.  You should talk to the mortgage broker about getting the bet type of mortgage for your credit.  If you have excellent credit, you should have no problem at all getting a very competitive rate.  If you have poor credit, you will pay a slightly higher rate, but can still shop for a competitive mortgage rate among sub prime lenders. 

 

Look at the fees that will be charged by the mortgage lender.  Some of them charge points, which are a percentage of the mortgage value.  While many mortgage lenders are eliminating the idea of points, others are still using them.  Make sure you know all of the hidden costs before you apply for any loan. 

 

If you are providing documentation, you will need two years of tax returns, bank statement for the last six months and employment verification to get mortgage loans.  If you are going no doc, you will just need an application to be filled out, proof of the down payment and an appraisal on the property.  An appraisal will have to be done whenever you apply for mortgage loans as it indicates how much the property is worth. 

 

To know more about bad credit mortgages and everything you need to know about mortgage loans feel free to visit our site.