Your Questions About Reverse Mortgage

Donna asks…

Renting a home that has a Reverse Mortgage?

I have friends that have been renting a home that they just found out has a reverse mortgage on it. The woman was put into a nursing home and the family is renting it out. Is it illegal to rent a home that has a reverse mortgage. If so, who would get into trouble?

admin answers:

Interesting question. I’d assume different states have different regulations regarding this issue also. I’ve found that many friends have found relevant information at BestReverseMortgage.com, a blog seemingly dedicated to all things reverse mortgage. I’d recommend checking that out too.

Thomas asks…

Anyone know of a work at home position with a Reverse Mortgage company?

I learned about reverse mortgages in Fl, Now in TX and would like find a company that allows you to work in my home office.

admin answers:

Contat them in person.
This is how you find a work at home job.
Look around your area of local companies and banks that do this.
Ask for an interview.
They will train you and perhaps want you to work at their location for a while first though.

I hope you know that reverse mortages are usually a bad idea.
It is considered one of the top 10 financial mistakes a person can make in their lifetime.
** Just letting you know – don’t get brainwashed into thinking this is a good financial idea for retired people.
/

Mandy asks…

Is there a way I can find out if my father has done a reverse mortgage on his home.?

My father has recently decided to be a part of my life. He claims to be leaving his home to me when he passes (the same home which he threw my mother, myself, brother and sisters out of on the the streets at an early age). I have heard rumors that he has recently done a reverse mortgage on his house. Is there a way I can find out if he actually has? I just want to know for myself because he always holds this house over my head.

admin answers:

Tell him to give it to a differert sibling. That way you will not be in it just for the money and will not worry about it.

Charles asks…

If you take out a reverse mortgage do you still get the benefit of house price increases while you have this?

For example does extra equity get added onto your account as the house prices rise, or is your total equity set against the date you take out the reverse mortgage?

admin answers:

Your kids will get the benefit unless you refinance to the higher amount.

Laura asks…

If I take my name off the deed to my how so my wife can get a reverse mortgage, do i lose everything?

If I take my name off the deed to my how so my wife can get a reverse mortgage, do i lose everything?

admin answers:

The below, from http://www.reversemortgagepage.com, answers the question pretty much exactly,

What if one spouse is under 62?

The short answer is that this means a reverse mortgage is not available on the property. Both husband and wife must be 62 or over. This is only true, of course, if the property is titled in both names, typically called a joint tenancy when between a husband and wife.

With a reverse mortgage, the loan comes due at the death or permanent move of the person whose name is on the reverse mortgage. The reverse mortgage lender, at this point, will want the reverse mortgage to be paid off. Therefore, the living (or still living there) spouse will be forced to come up with sufficient funds to pay off the reverse mortgage. This can obviously be quite daunting.

However, a reverse mortgage coming due does not mean the house belongs to the bank or to the reverse mortgage lender. The house merely secures the loan. The lender just wants the money. In fact, they probably don’t want the house anymore than you want to give them the house.

So ultimately, the person who remains in the house will need to have sufficient funds to pay off the reverse mortgage, or will need to move out.

First, “the move out.” When the spouse on the reverse mortgage dies or moves to a nursing home, it may in fact be a better option for the other spouse to relocate. The house may be too big, the responsibilities to great, etc.

Second, “the payoff.” Life insurance and/or long-term care insurance may be the only possibilities. A life insurance policy can be purchased to provide sufficient funds to satisfy the reverse mortgage. In fact, the life insurance can be put in a trust to avoid the probate process, thereby making the funds immediately available for use to take care off the reverse mortgage. The long-term care insurance would need to be substantial in order take care of the care, the bills, and the reverse mortgage.

Things to keep in mind

1. The insurance policies must be sufficient to take care of the intended purpose.

2. It is best to speak with a financial planner and/or insurance agent to make sure your goals get met.

3. Make sure the terms of the reverse mortgage in general.

4. Make sure, specifically, you know how long a person being out of the house constitutes a “permanent move.”

Best of luck in all your endeavors.

Powered by Yahoo! Answers

Your Questions About Reverse Mortgage

Donna asks…

Can I buy my parents place from them using a reverse mortgage?

I would like to pay for my parents upkeep . By having it strucutred as a reverse mortgage they are comfortable taking the money and it is tax free in their hands. As I am actually paying to buy the house I would also like to claim tax deduction on the monthly payments. Is it possible?

admin answers:

Are you asking if you can be the reverse mortgage lender? Not if you are not a legal bank you can’t.

You can buy their house with a conventional mortgage and just let them live there though. I did this with my mother, and will with my father if it comes down to that.

Mark asks…

what are the cons of a reverse mortgage?

I am thinking of getting a reverse mortgage to pay off my existing mortgage without any repercussions . Will the interest eat up the remaing equity? more?

admin answers:

It is possible. Before you take it out find out your line of equity. To do this you must have your property appraised. HINT: Before you have it appraised beautify the house appraisers hate dirty houses. If you owe more in principle then you equity then you may be in trouble. The interest is paid during the beginning of a lot of mortgages. As long as your house is worth more then you owe then go for the reverse mortgage.

Ken asks…

Give a reason why a 65 year old person with a reverse mortgage?

With a 300,000 reverse mortgage need a will.

This should honestly be one of her very last concerns.
If she dies, the house goes straight to the bank
Obviously a person in this scenario would have little assets, since a reverse mortgage is the last resort to money problems.

What would the will cover?
I’m leaving you with high credit card debt, unpaid property taxes, a leased Lexus SUV?, etc?
Oh, and you get the house, it will just be worth nothing since it belongs in full to the bank?

admin answers:

A reverse mortgage is typically not a last resort. Although, it’s unlikely that people with investments that have this sort of loan (i.e. Things that can be liquidated easily). But most people taking a reverse mortgage they don’t sell off personal possessions or family heirlooms before taking this new mortgage, so there would be a will to cover these items.

And homes with reverse mortgages do not automatically go back to the bank. The heirs are allowed to sell or re-mortgage the property to pay off the reverse mortgage.

Most people with reverse mortgages live within their means, they don’t have high credit card debt or leased vehicles.

Helen asks…

What arand e some reputable reverse mortgage companies?

My great grandmother is 80 and has quite a bit of credit card and medical debt but not much income. She owns her house outright, and compared to other options, a reverse mortgage seems to be the best option. It would make her life a lot less stressful. She realizes that if it isn’t paid back, her children won’t inherit the house. Anyways, what are some reputable reverse mortgage companies? How long should it take to process loan requests? How long (from the time of the intitial request) does it take to sign on the dotted line and get the money? She gets tired of creditors calling all the time not understanding that there is no money to give them.

admin answers:

Nick,
As long as your great grandmother can access enough equity, not only will she be able to payoff her debts, but she also may be able to set up a monthly income stream for the rest of her life, and /or a line of credit that will have a growth factor that she could access at anytime for any need. As far as paying back the Reverse Mortgage, there are no monthly payments, and the Reverse Mortgage becomes due when one of the following happens, 1, she sells the house, 2, the home is no longer is her primary residence, meaning that if she were to be out of the house for a consecutive 365 days(1 year) the home is no longer considered by the lender to be her primary residence, and 3, when she passes away. Any equity left after paying back the Reverse Mortgage is hers to keep, or in the event she passes away the equity goes to the estate. Her children can inherit the house, all the bank cares about is that the Reverse Mortgage is paid back. Lets say the house is worth $200K and the amount owed on the Reverse Mortgage is $100k, her family can get a $100k mortgage to payoff the Reverse Mortgage and thus retain ownership of the home.
Nick, from the time a Reverse Mortgage application is signed, to the time you receive the funds can be between 3-5 weeks. There is mandatory 3rd party counseling(30-45 minute phone call with a HUD approved Reverse Mortgage Counselor),appraisal, loan processing, and the closing. You also have 3 days after the final paperwork is signed to change your mind and cancel the transaction.
I work for one of the top 5 Reverse Mortgage Lenders in the country, and would be able to assist you. More than working with a reputable company, you want to make sure you deal with a reputable person, for instance there a 3 different Home Equity Reverse Mortgages (HECM) known as HECM 150, HECM 125 and HECM 100. You only want to talk about the HECM 100 as it is the lowest interest rate and will allow for the most access to equity. With a higher value home typically over $600K there are Jumbo Reverse Mortgages which may or may not be more suitable to your needs. Both the HECM 100 and the Jumbo products can be done with either a variable rate or fixed rate, and depending on the what the needs are will determine which is best. If you have any other questions feel free to e-mail me, and check out my website for more info.

Stephen
Reverse MortgageSpecialist.com

Linda asks…

reverse mortgage. is it against the law if you dont report the person that died to the bank?

My grandmother passed away 4 months ago. She has a reverse mortgage. Family is renting the house out. It is unknown if they disclosed to the bank that she has passed away. Is this against the law?

admin answers:

If she has a reverse mortgage, the bank is entitled to their money on sale of the home, which should take place soon after death.

Yes, it is illegal (it’s fraud) for the executor of the will to fail to notify the lender. They are required to do so to all creditors as soon as practically possible after the death. 4 months is far too long.

Powered by Yahoo! Answers

Your Questions About Reverse Mortgage

Donna asks…

How can I get involved in the Reverse Mortgage business?

I have a Corporation in the state of Texas. We are interested in getting into Reverse Mortgages. We have several qualified leads. Do we need a brokers license? What can we do to get this information out to these potential borrowers? Do I need to hire a mortgage broker?

admin answers:

You really need to check with your local State authority to find out what is needed, as it can vary state to state. You need to be approved by HUD, the State of Texas, and the lenders. If you want to work the loans directly under the name of your Corporation, since this is a HUD loan, I believe you need to be HUD approved yourself as a direct lender/broker. And then you need to get the State licensing to do loans in Texas. Then you need to register and get approved with the various lenders who are also qualified to offer mortgages in Texas.

Otherwise, you work for a broker as a contractor, or a bank as an employee, who are approved in Texas and fall under their licensing and sell only their products. Or sign up with one of the internet shops who are licensed in Texas, and go under their umbrella licensing. Or sell the leads.

Texas is a very “special” state and is a little more restrictive in what they allow in reverse mortgages (e.g. Trusts, lines of credit, purchases, etc.).

Lisa asks…

Where can I find a Reverse Mortgage lender in Texas?

I have a home in San Antonio, TX on which I have quiet a bit of equity. I would like to get a HECM Reverse Mortgage and need a lender that specializes in Reverse Mortgages in Texas.

admin answers:

Hi, you can go to www.texasreverse.net and visit that website to find a Reverse Mortgage lender in San Antonio or Texas.

George asks…

When someone with a reverse mortgage passes away, and they have not yet received the full value, what happens?

If someone who has a reverse mortgage, and has been receiving payments for a few years, passes away before they are able to receive the full value for their home, what happens next? I think that what happens is the property is sold by the estate and the balance owed on the mortgage is paid from the proceeds of sale, but I need to find out where this is in writing. Is there a statute or code somewhere regarding reverse mortgages? Thanks!

admin answers:

If it’s an FHA reverse mortgage, then what you say is correct. The property will be sold and the estate will receive the balance minus the debt and the interest accrued.

Nancy asks…

do you have income with a reverse mortgage loan?

I’m having trouble finding the law that states the answers for these. I’m only looking for the law that will answer my questions.
When I take my monthly draw from the bank from my reverse mortgage loan is that considered income? Also can I deduct the interest when it is added to the outstanding loan balance each month.

admin answers:

I really dont know, but it sounds to me like it shouldnt if you lived in the house for 2 of the last 5 years on like the first $500,000 of profit.

And if it is taxable, im sure only a fraction would be taxed from each months draw. The portion that is considered profit would be taxed, not your basis.

This is what sound the most reasonable to me

call the irs.gov people

Richard asks…

Is there a reverse mortgage available for people less than 62 years old?

I am a US homeowner. Instead of refinancing, I wanted to explore the possibility of a reverse mortgage.All I have seen so far is that this is only good for homeowners aged 62 or more. Is there a company that provides reverse mortgages for those younger than 62?

admin answers:

YES

A reverse mortgage is a special type of loan used by older Americans to convert the equity in their homes into cash. The money from a reverse mortgage can provide seniors with the financial security they need to fully enjoy their retirement years.
Many of the same costs that someone pays to obtain a home purchase loan, or to refinance their existing mortgage, apply to reverse mortgages too. You can expect to be charged an origination fee, up-front mortgage insurance premium (for the FHA Home Equity Conversion Mortgage or HECM), an appraisal fee, and certain other standard closing costs.

In most cases, these fees and costs are capped and may be financed as part of the reverse mortgage. Below is a more in-depth explanation of each type of fee.

Origination Fee
The origination fee covers a lender’s operating expenses—including office overhead, marketing costs, etc.—for making the reverse mortgage.

Under the HECM program, which accounts for 90 percent of all reverse mortgages made in the U.S., the origination fee is equal to the greater of $2,000 or 2 percent of the maximum claim amount (i.e., county FHA loan limit). Currently, the FHA loan limit varies from a low of $200,160 (for rural areas) to a high of $362,790 (for high-cost metropolitan areas). Therefore, the 2 percent origination fee generally ranges between $4,003 (2 percent of $200,160) and $7,256 (2 percent of $362,790).

Home Keeper borrowers are charged an origination fee that may not exceed 2 percent of the value of the home. With either product, the entire amount of the origination fee may be financed as part of the mortgage.

Mortgage Insurance Premium
Under the HECM program, borrowers are charged a mortgage insurance premium (MIP), equal to 2 percent of the maximum claim amount, or home value, whichever is less, plus an annual premium thereafter equal to 0.5 percent of the loan balance.

The MIP guarantees that if the company managing your account – commonly called the loan “servicer” – goes out of business, the government will step in and make sure you have continued access to your loan funds. Furthermore, the MIP guarantees that you will never owe more than the value of your home when the HECM must be repaid.

Appraisal Fee
An appraiser is responsible for assigning a current market value to your home. Appraisal fees generally range between $300-$400.

In addition to placing a value on the home, an appraiser must also make sure there are no major structural defects, such as a bad foundation, leaky roof, or termite damage. Federal regulations mandate that your home be structurally sound, and comply with all home safety codes, in order for the reverse mortgage to be made.

If the appraiser uncovers property defects, you must hire a contractor to complete the repairs. Once the repairs are completed, the same appraiser is paid for a second visit to make sure the repairs have been completed. The cost of the repairs may be financed in the loan and completed after the reverse mortgage is made. Appraisers generally charge $50-$75 dollars for the follow-up examination.

Closing Costs
Other closing costs that are commonly charged to a reverse mortgage borrower, include:

Credit report fee. Verifies any federal tax liens, or other judgments, handed down against the borrower. Cost: Generally under $20
Flood certification fee. Determines whether the property is located on a federally designated flood plane. Cost: Generally under $20
Escrow, Settlement or Closing fee. Generally includes a title search and various other required closing services. Cost: $150-$450
Document preparation fee. Fee charged to prepare the final closing documents, including the mortgage note and other recordable items. Cost: $75-$150
Recording fee. Fee charged to record the mortgage lien with the County Recorder’s Office. Cost: $50-$100
Courier fee. Covers the cost of any overnight mailing of documents between the lender and the title company or loan investor. Cost: Generally under $50
Title insurance. Insurance that protects the lender (lender’s policy) or the buyer (owner’s policy) against any loss arising from disputes over ownership of a property. Varies by size of the loan, though in general, the larger the loan amount, the higher the cost of the title insurance.
Pest Inspection. Determines whether the home is infested with any wood-destroying organisms, such as termites. Cost: Generally under $100
Survey. Determines the official boundaries of the property. It’s typically ordered to make sure that any adjoining property has not inadvertently encroached on the reverse mortgage borrower’s property. Cost: Generally under $250

Service Fee Set-Aside
The service fee set-aside is an amount of money deducted from the available loan proceeds at closing to cover the projected costs of servicing your account.

Federal regulations allow the loan servicer (which may or may not be the same company as the originating lender) to charge a monthly fee that ranges between $30-$35. The amount of money set-aside is largely determined by the borrower’s age and life expectancy. Generally, the set-aside can amount to several thousand dollars.

(Note: The servicing set aside is just a calculation and not a charge. The only amount added to your loan balance is the monthly servicing fee, which ranges from $30-$35.)

If you are looking for a Lender for reverse mortgage you can click on the link below
http://www.reversemortgage.org/Default.aspx?tabid=255

Powered by Yahoo! Answers

Your Questions About Reverse Mortgage Lenders

William asks…

Question about reverse mortgage……?

I’m trying to find out some helpful information for my parents. They are considering a reverse mortgage, but so far my Mom has only spoke with one lender……We live in SC, and the last time they had their house appraised it was for $91,500. or somewhere around that amount…..The lady she spoke to on the phone today told her that if her house is appraised at only 91500 she will only get around $60,000. and that is before the closing cost and other fees, which all that added up to be around $14,000. Does this sound right? We were thinking that she should be able to get more than that…..If anyone has any experience in this, any advice would be appreciated. I’ve found a list on the Gov. website for hud approved reverse mortgage lenders…..Maybe she should call around for the best deal? Thanks guys and I hope everyone had a blessed Christmas!

oh yea, and if it helps any, my parents don’t have a current mortgage. They owe nothing.

God bless……

admin answers:

This is actually pretty good, they usually go to about 60% of the value.

There will not be ANY of these that will pay your mother a fair market value. They make their profit on the back end, with the equity instead of interest.

If your parents have other options they should go with those, this one is not a good deal, no reverse mortgages are.

Michael asks…

I want to know where to get a list of reverse mortgage lender in Minneapolis area with address, name, phone et

admin answers:

Hello Frankie,

Here’s where you want to go…..www.reversemortgage.org . This is the website for the National Reverse Mortgage Lenders Association (NRMLA). You will see on the left side of the page a link to ” Locate a Lender” Click on that, then use the drop down arrow to get your state, and a list of lenders with names and phones will pop up. You will also find some good information there also. For disclosure purposes, I have been in the Reverse Mortgage business for over 2 years and I’m a Reverse Mortgage Consultant for EverBank Reverse Mortgage…a National Bank that only does Reverse Mortgages. If I may suggest you call Larissa Morrell, you will find her to be a fantastic source and will guide you thru the Reverse Mortgage process.

Regards,

Stephen Greenberg
Producer/Host
Senior Solutions Radio
AM 1060 WBIX

Donna asks…

ron a reverse mortgage can the lender sell the home to a family member for more than an outside non relative?

for a lesser amount after the owners die?

admin answers:

Yes, they can sell the property to anyone they want for whatever offer they decide is the best.

John asks…

How much does reverse mortgage counseling cost?

I was reading a site called www.reversemortgageabcs.com that talked extensively about the need for reverse mortgage counseling and even where I could find a counselor. However, it did not mention how much it would cost nor did it mention whether I would have to pay for it (or if the lender would) if I decide not to proceed with the reverse mortgage.

admin answers:

The borrower doesn’t pay for it at all. The lender pays. On most, if not all, reverse mortgages, the borrower doesn’t pay anything if the loan doesn’t close. Say your appraisal is too low. You don’t pay any fees.

Look at the AARP website. They have a lot of details there. Bank of America’s website is very good. They have a calculator to give you an idea how much you might be able to get.

Susan asks…

With a reverse mortgage if owner stays in house and ends up with excessive equity does lender go after estate?

With a reverse mortgage, If owner stays in house for longer than expected and with interest, etc. ends up “upside down” — in other words, more is owed on the house than it’s current value, (of course, after the death of the owner), and after the bank sells the house can it then come to the estate to make up the difference?

admin answers:

Reverse mortgages are tricky and prone to lots of misinformation. But do not worry in this case. First, the bank doesn’t own the house so they don’t get to sell it. The heirs have a year to refinance or sell.

If the proceeds are not enough to satisfy the loan, the lender (or their insurance on the loan) absorbs the difference. This is a “non recourse rule” which entitles the lender to only the market value of the home and nothing more.

The other assets are safe.

Powered by Yahoo! Answers

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….

Powered by Yahoo! Answers

Fha Reverse Mortgage Lender

The Federal Housing Administration, which is also known more commonly as the FHA, is a group that has been aiding people in getting a home since 1934. The FHA’s job is to administer the government home loan insurance program, which allows for homebuyers to qualify for a home loan, is an organization that lenders must affiliate with. In addition to offering mortgage loan insurance, FHA also offers insurance for what is called a Reverse Mortgage Loan. Reverse mortgages are only available to senior citizens that are 62 years of age or older.


Reverse mortgages are mortgage loans that a person who already owns a home can take out in order to refinance that home. In addition, reverse mortgage loans can also be taken out for senior citizens that are looking for a new home to purchase, but do not want to pay monthly mortgage bills. The way a reverse mortgage works is very different from the way a traditional mortgage works; reverse mortgages do not require the borrowers (homeowners) to pay back the loan. In fact, reverse mortgage lenders actually pay the borrowers (homeowners) instead. Lenders pay in a variety ways, the most common of which are One Lump Sums, monthly payments, periodic lines of credit, or a combination thereof. The money that the homeowner receives from the lender is un-taxed, and the recipient of the money can do whatever he or she wants with funds. This can help homeowners who already have a home and have fully paid off their mortgage, or are almost done paying off their mortgage, to receive extra money for retirement without having to work, and it’s tax-free. Also, this can help potential homeowners who are senior citizens by getting rid of the need to pay off monthly mortgage bills, and allows the potential new homeowner to receive money instead.


However, even though reverse mortgages loans allow borrowers to receive money, it is still considered a loan. The homeowner is not in risk of loosing his or her house, and the homeowner does not need to pay back the money later. Instead, the money is paid back through the proceeds generated from the house sale. The house can only be sold if the homeowner wishes to, if the homeowner becomes deceased, or if the homeowner is absent for more than 12 months. When the house is sold, the FHA Reverse Mortgage Lender is paid back. If the house sales for more money than the FHA Reverse Mortgage Lender is owed, then the existing homeowner or heir(s) receive the difference.


Yet, what happens in the event that the money sells for less than the reverse mortgage loan due? This can worry many people, because they may suspect that either the existing homeowner or heir(s) will have to pay back the difference to the lender. Thankfully, because of the FHA, the FHA Reverse Mortgage Lender has no worries about whether or not the home will sell lower than the amount due, and neither does the homeowner or the heir(s). The FHA removes the risk from the lender by insuring that FHA will pay back the difference to the lender, therefore everyone is safe.


For more information please visit our website on Reverse Mortgage

Trinity Reverse is the leading Reverse Mortgage Company serving California since 1984.

California Reverse Mortgage Lender: the Best Companion for Senior Citizens

Money is the basic requirement for everyone. Being a senior citizen never means that he/she does not need money. This money may be needed for many purposes such as health treatment, house renovation or any other personal need. If you are a senior citizen and want a large amount of money instantly then California reverse mortgage lender is the ultimate destination for you. Senior citizens who reside in California or in any nearby place can decide on reverse mortgage for best and reliable support.

There are some basic requirements that need to be fulfilled for getting mortgage from California reverse mortgage lender. First of all the borrower has to be a senior citizen and owner of a high valued residential asset. The compulsion of the mortgagor to repay the amount is delayed till the mortgagor is alive. In case the house is sold or person who is residing in it moves to somewhere else, then the mortgagor will have to repay the mortgage. The best thing about California reverse mortgage lender is that the borrower will not have to pay any interest on the loan amount, as it will be deducted from the realized cost of house. Normally the mortgage is repaid within the limit of 30 years whereas in case of reverse mortgage a monthly amount will be paid to mortgagor. Actually this is the amount which is payable to property owner by California reverse mortgage lender on cost increment of house.

In such a phase of life when you cannot ask anyone to lend money as no one would like to take risk for his money, as you cannot guarantee to return it. California reverse mortgage lender assures senior citizens for instant finance with less paper work. It understands the intensity of your need and thus it does not delay in lending you the money. Mortgaging from California reverse mortgage lender is beneficial from every aspect. Its terms and conditions are crystal clear so that any mortgagor may not feel cheated at any point of time. If you are planning to go for reverse mortgage then do a detailed market research before making any decision. Compare plans and offers of all reverse mortgage lenders. Always choose a plan according to the requirement for instance you need a loan for home repairing then the best option will be the single purpose loan of California reverse mortgage lender. Read all terms and conditions carefully so that you may avoid frauds.

California reverse mortgage lender is the best option a senior citizen can ever find. California reverse mortgage lender enables them to convert their asset in guarantee for loan and equity. This equity is totally a tax-free income, which means you will not have to pay any tax on that income from house. It is a perfect idea to take loan from California reverse mortgage lender as it makes monthly payment to you instead of receiving payment to from you. Isn’t it a double benefit plan that continues your source of income even when you are a retired person? Therefore don’t be confused and make a sensible decision that will pay you equity on your loan.

Antonio Redford is a legal expert. He gives advice to clients who are looking for expert counsel on reverse mortgages. For more queries about reverse mortgages loan, American reverse mortgage, california reverse mortgages lender and reverse mortgage Canada visit www.reverse-mortgage-seniors.com

Choose the Reverse Mortgage Lender With Care

Old age comes with lots of problems and all we can do to take care of all these problems is to make sure that we are financially prepared to deal with that. When a person is young he has all the energy and potential to earn money, but as they start approaching the retirement age money crunch can hit them hard. It is understood that once the regular flow of income stops after your retirement, you will need some additional finance to take care of your and your family’s needs. The needs does not change in fact they increase but the money stops after one retires and that is why we need to take care of the money aspect of a person after retirement. There are certain financial schemes that have been made to take care of the financial needs of an individual once he retires from work. Reverse mortgage is such a financial transaction that can actually help out a senior citizen take care of all his financial needs even after retirement without too much of a hassle.

In reverse mortgage, a person can get the required amount of money in lieu of the house that they own. The only criterion for getting a reverse mortgage loan is that the person must be above 62 years of age and must own a property in their name. The concept of reverse mortgage is pretty old, but at one point of time it did not use to be a popular choice with the retired. However, of late things have changed and today you can find a large number of people are opting to take reverse mortgage loan to take care of their finances after retirement. One has to be very careful while searching for a reverse mortgage lender; you have to make sure that you are working with an honest dealer so that you do not face any problem while taking a reverse mortgage loan.

There have been instances where fraud reverse mortgage dealers have caused lots of harm to people who are looking out for reverse mortgage loan. So what you will have to do is make sure that you are dealing with an honest lender so that the whole process is smooth sailing for you. Do not make the mistake of dealing with the first reverse mortgage dealer you come across, do a little background research before you select a dealer. If the lender has a good reputation, you can go ahead and take the loan without worrying about anything. However if you are still worried about the whole thing, you can talk with a legal representative to have a clear picture and knowledge about the whole thing.

The reverse mortgage lender will help you in getting the exact amount of money that you require to take care of your loan. The amount of money will depend on the value of the house that you own and till the time you stay in the house you will not have to repay the loan amount. If you work with the best reverse mortgage lender, you are sure to get the best deal for your house.

Antonio Redford is a legal expert. He gives advice to clients who are looking for expert counsel on reverse mortgage. For more queries about Reverse mortgages,Reverse mortgages lender visit on www.reverse-mortgage-seniors.com

Approach Reverse Mortgage Lender to Get “low Risk High Gain” Loan

As old age comes with its own type of problems, one must be financially secure to deal with these problems. Since a person grows old, his financial resources start drying up; in such situation financial crises can pester him a lot. Borrowing money from any relative or friend can be pointless as after knowing that the borrower does not have any steady source of income except pension no one would like to lend money. In such scenario reverse mortgage is the only solution with regular income stream that can help in fulfilling intensive financial needs. Home is that single typical asset that every senior owns; a reverse mortgage lender offers you low risk and high gain loan against equity of that house property.

Every senior who owns a house or a portion in any house property, can approach reverse mortgage lender for getting money. Though the concept of reverse mortgage is very old but due to its high risk and fear of collapsing home it never got positive response of people. This entirely new version of reverse mortgage is poles apart from traditional reverse mortgage system and is capable enough to be preferred choice of every borrower without any fear. Current reverse mortgage lender companies are not only offering an excellent loan facility but also providing seniors with a source of income. Reverse mortgage providers are such financers that make it possible for senior to live with their principles and dignity even after getting retirement from profession.

Getting loan from any reverse mortgage lender is very simple; according to the rule, a house owner who has crossed 60 years of age can apply for reverse mortgage loan. Through this, he can get loan up to 60% of the values of his house asset along with privilege to stay there as long as he want. Moreover, the mortgagor will not be forced by the lender to repay the amount till a certain time period but in case the house owner is willing to sell his house property he will be liable to repay his loan first. In terms of repayment, the senior can opt for monthly, quarterly or yearly installment or as per his discretion. Consequent to revaluation necessary changes can be made to loan amount; for instance the more value of your home will increase the less you will have to repay to reverse mortgage lender. Factors, such as location and market value of the house property and age of borrower affect payment status of loan and can increase or decrease the amount of loan.

The most important advantage offered by the reverse mortgage lender is that despite mortgaging the house, the house owner can retain its ownership. The amount received from reverse mortgage will be considered as loan not as income, hence, it is non-taxable and do not put any tax burden on borrower. This regular monthly income can be helpful to seniors in fulfilling his day-to-day needs. Needless to say that reverse mortgage loan is extremely advantageous as it is helping numerous seniors in living a relaxed post retirement life.

Antonio Redford is a legal expert. He gives advice to clients who are looking for expert counsel on reverse mortgage. For more queries about Reverse mortgages,reverse mortgage lender,American reverse mortgage, reverse mortgage lender

and visit on www.reverse-mortgage-seniors.com

Steps to Getting a Reverse Mortgage

Here are a few of the steps you’ll want to go through to get started with a reverse mortgage. Keep in mind that these types of loans are not necessarily for everybody, but they can be a great source of funding when seniors are in need of additional income.


1. Becoming Aware: Because reverse mortgages are relatively new, there are a lot of people that don’t know much about them. Although the media including newspaper, tv, radio, etc. are reporting more on stories about reverse mortgages, there are still a lot of misconceptions and misunderstanding. People learn about reverse mortgages through the news, articles in the newspaper, magazines and other medium including word-of-mouth.


2. Get Educated: Homeowners find out additional details from a reverse mortgage lender or use tools like the internet to get more details on reverse mortgages. The National Reverse Mortgage Lenders Association may also have some insight into reverse mortgage lenders in your area.


3. Independent Counseling: Before being able to be approved for a reverse mortgage, the borrower will need to work with independent counselors through either the AARP or through a local HUD-approved counseling agency. This counseling can be done in person or over the phone. Counselors will review other options including housing, social services, health and financial alternatives as well as other home equity conversion options including property tax deferral. The counselors will also discuss the financial implications of a transaction like this and the potential consequences including tax liabilities.


4. Application Process: Homeowners will then work with their loan officers to complete an application and choose their payment plan in the form of either a lump sum or monthly payments, a line of credit, or a combination of all three. The lender will disclose all of the details about the loan and the loan amount and all estimated costs as dictated by the federal truth in lending act. The application will also include verification data including social security information, deed to the home, information on existing mortgage (if any), and counseling certificate.


5. Processing: The lender will order an appraisal of the home to determine the value and the appraiser will also make sure the home meets the FHA guidelines for the physical condition of the home. Repairs may be required if any component of the home doesn’t meet the guidelines for the physical condition of the home. Repairs are the responsibility of the homeowner and any expenses occurred in this case are the responsibility of the homeowner as well.


6. Underwriting: Once the application and all necessary paperwork required to accompany the application are submitted, the process of underwriting the loan begins. By this time, the loan parameters have been agreed to by the lender as well as the borrower and include things like payment options, frequency of loan interest rate adjustments, and loan amounts. The underwriting process takes about 4-8 weeks to underwrite the loan package. Some underwriting may be done faster, some slower.


7. Closing: Once the loan is approved through the underwriting process, the closing is scheduled. Interest rates are calculated at this point and the closing documents and final numbers are prepared. Most costs, if not all costs may be financed as a part of the loan. The homeowners are required at this point to sign the loan papers.


8. Disbursement: Following the closing of the loan, the homeowner has a 3-day right of rescission. This means the homeowner can cancel the loan within those three days without penalty. Once this 3-day right of rescission has passed, the funds from the loan are dispersed. Depending on the method of payment selected by the homeowner, the funds are then dispersed or made available. Any existing debt on the home at this point is paid off and a new lien is placed on the home. The homeowner at this point may use those funds for any purpose.


9. Repayment: Homeowners aren’t required to pay any mortgage payments or repay the reverse mortgage until they cease to occupy the home as their principal residence. The reverse mortgage may be repaid by the homeowner or the heirs or by the estate. This repayment doesn’t require the sale of the home. The repayment obligation of mortgage can be taken care of by a traditional refinance as well. The loan amount or repayment obligation can’t exceed the home’s value or sales price.


These are the main steps to getting a reverse mortgage. Seniors age 62 and older can apply for and get approved for this type of loan. Reverse mortgages aren’t for everybody, but if you are in a position to need income beyond retirement, the reverse mortgage may be a very good option. How much you’ll get will depend on your age as well as the equity and value of the home. Plan on speaking with a counselor as well as a loan officer prior to getting a reverse mortgage. Research will be a valuable tool when making a decision involving perhaps your most valuable possession.

Brian Armstrong is a loan officer and licensed to establish Utah reverse mortgages.

You can read more about reverse mortgages on his website.