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Janet Said:

Will my home be foreclosed on (reverse mortgage)? What is the Procedure? Do I have any recourse?

We Answered:

The FHA requires (let me stress that: REQUIRES) that at least one of the owners is living in the house. If you are the only owner, that means you. This was made clear when you got the reverse mortgage. If you are gone for 12 consecutive months, your mortgage is due. It's fine if you spend 6 months in Florida and 6 months in Michigan, but if you're gone 12 consecutive months, it's time to pay the loan. This goes for a long term stay in a nursing home or if you move in with your daughterbecause the purpose of the loan to to help people stay in their homes.

You do have options but you might not like them:

1. Go home and live there.
2. Sell it and pay off the loan.
3. Refinance the loan into a regular forward loan.
4. Get foreclosed on.

If you owe more than the value of the house and don't plan to live there, you might as well let it go. Even if the lender doesn't know yet, the clock has already been ticking since that 12th month. With a regular mortgage if you owe too much and still make the payments, everything is fine. This isn't an option here. Live there or pay the mortgage off.

If you owe less than the value and don't want to live there, sell it. At least you'll get some money out of it.

The bottom line is that we have no leeway in this, no wiggle room, no "how do I get around" answers. These are FHA requirements and the individual lender can't change them.

Barry Said:

which is better a reverse mortgage or a home equity loan?

We Answered:

First two responders are correct. A reverse mortgage is better. Understand though that a reverse mortgage has extreamly high closing costs. My MIL just did one for 100,000.00 and paid over 16,000.00 in fees.

Howard Said:

Renting a home that has a Reverse Mortgage?

We Answered:

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.

Sue Said:

my mom has recently past away and she has left me her home, the problem is she has a reverse mortgage?

We Answered:

You refinance the property and repay the mortgage, or use other funds from her estate to pay it.

Gertrude Said:

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

We Answered:

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.