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.

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