Your Questions About Reverse Mortgage

Robert asks…

What is a reverse mortgage, and who are eligible?

admin answers:

Some of the other posts are wrong.

A reverse mortgage is a special loan designed for seniors, aged 62 and older, that allows homeowners to borrow money without having to make any payments until they sell or pass the home onto their estate. With a reverse mortgage, the bank pays you versus you paying the bank. Reverse mortgages differ from traditional home equity loans and mortgages as you do not make any monthly mortgage payments for as long as you stay in the home.

To be eligible for a reverse mortgage you must meet the following qualifications:
a) You and everyone else on the title of your home must be 62 years old or older.
B) You have little to no mortgage on the property.
C) Your home is your primary residence.
D) Your home is in good condition.
E) Your home is a single family; two to four family; condo; or townhouse. Some manufactured homes and 55+ associations also qualify.
F) You expect to stay in your home for a number of years.

You can receive your payments as a lump sum, monthly payments, a credit line, or a combination of all three.

The bank never takes your house. That is a myth

Your reverse mortgage loan becomes due and must be paid in full when one of following conditions occurs:
a) the last surviving borrower passes away or sells the home;
b) all borrowers permanently move out of the home;
c) the last surviving borrower fails to live in the home for 12 consecutive months;
d) you fail to pay property taxes or insurance and do not correct the problem;
e) you let the property deteriorate, beyond what is considered reasonable wear and tear, and do not correct the problems.

You or your heirs keep the net proceeds from the sale after the loan balance is paid. The bank does not take your house.

Betty asks…

How can I go about obtaining a reverse mortgage?

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……



Laura asks…

Reverse Mortgage and Last Will and Testaments?

In this case an original will was made to give an estate to one person as the main heir and if the main heir dies then the second heir will receive the estate. The owner did a reverse mortgage on her home and gave the money to the main heir before she died. If there is no money left after the first heir dies; can the second heir sue the main heir’s children? Did the will become null and void after the owner did the reverse mortgage and gave the money to the main heir? We live in Virginia. Please help….

admin answers:

A will is directions for how to dispose of whatever property remains in the estate upon the death of the testator. If there is nothing in the estate, that is too bad. Everyone is free to give away their property before they die. For that matter, a will can be changed at any time and therefore means nothing until the person is dead.

Linda asks…

If someone did a reverse mortgage on their home will it show up on the Board of Tax Assessors?

admin answers:

Dusty forgets that real estate folks obtain the information from the tax assessor. LOL

Yes, the tax assessor knows the bank and the original mortgage amount, but not balance. They also are informed as soon as an owner defaults.

Carol asks…

I have a mortgage note and they said they are getting a reverse mortgage on it. Is this legal?

they are under sixtytwo and are not living in the mobilehome.

admin answers:

Well it can’t be a government backed reverse mortgage. If they aren’t living there, they don’t qualify.

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