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Jon Said:

Can I qualify for a HUD reverse mortgage?

We Answered:

You'll have to furnish further details to answer your question properly. If you dont wish to be clear with your details, I can you can help your self from the following article on suite101 magazine.

http://www.suite101.com/content/tips-on-getting-a-reverse-mortgage-with-bad-credit-a227755

Jacqueline Said:

2009 my mom passed away and she had a reverse mortgage Thur hud, my ? is can i stay in her home?

We Answered:

If you are her heir, you can stay in the home, however the loan became due upon your mother's passing. If you inherited the property, you own the home now and have a choice regarding how you want to satisfy the loan: you can pay the reverse mortgage off directly with cash, you can refinance the home with a regular mortgage, or you can sell the home and pay the loan off and keep any remaining money. If the home is worth less than the loan, you can simply give the bank title to the home and walk away. You are not obligated to pay the bank beyond what the home is worth.

If you decide to sell the home, the bank will generally give you about six months to sell it before they will institute foreclosure proceedings.

Julie Said:

Why Does HUD Record A Second Mortgage On A Reverse Mortgage?

We Answered:

I don't think you worded your question properly. The last response may have helped you, but just in case it didn't, this should answer your question.

HUD holds a second lien on your property (the first is held by the lender). The second lien that is held by HUD ensures that the borrower will not be adversely affected by a lender going bankrupt. I.e. If a lender starts to hit a rough patch, the borrower will continue to get whatever distributions the were promised (monthly distributions for the rest of their life?) through HUD for as long as they are living in their home.

I hope this helps.

Hilda Said:

Does anyone know about reverse mortgages?

We Answered:

Reverse mortgages are a legitimate option for senior homeowners. Each person's needs/situations are different, so it's wise that your mother speak to a mortgage professional to weigh all her options.
Reverse mortgages loan out money based on the value of your home, interest rate and age of the borrower. The amount of money can be divided up by monthly increments or in a lump sum. She can use this money for whatever she wants.
A HUD Reverse Mortgage does not have to be repaid until the borrower dies, sells the home or doesn't reside in the home for a year. However, there are other instances that can cause default and require the borrower to pay back the loan.
Once the borrower no longer resides in the home the heirs can refinance or sell the home. If the proceeds from the sale doesn't cover the loan, HUD will pay the lender the remaining balance.

The link below has some good information and a reverse mortgage analysis tool to help you.
http://www.seniorjobbank.org/rm/index1.h…

Carole Said:

What are the rules for making my mobile home HUD approved?

We Answered:

Clara,

There are several items that need to be met in order for your home to qualify for a reverse mortgage.

It must have been built later than 1978.

You must own the land it sits on, or it must be on a 99 year lease.

It must have a permanent foundation, secured with piers that meet fha guidelines. This can be done after you close on the loan.

It must have never been moved except from the factory to it's current location.

You will need the manufacturer's tags that are usually attached to the home.

Other than that there isn't too much that will keep your home from qualifying.

I am a loan officer who specializes in reverse mortgages. If you would like any more information or would like for me to quote you on a reverse mortgage please feel free to contact me at bburns@griffinloans.com

Thanks,
Brandon

Lillian Said:

Reverse mortgage fixed rate?

We Answered:

Debdeb is correct. I hate to think what other misinformation Judy, Top Contributor, has been spewing. Without knowing what your parent's needs are, what their plans are, if they have other resources, or anything else, she has thrown out the baby with the bath water.

It's all about risk. The bank is assuming a huge risk by loaning your folks money with absolutely no idea when they will get repaid - 5 years? 10 years? 30 years? A bank is not a non-profit. They are in business to make money. That is not a crime; they are providing a service. They make money only on the money that you take out. By committing to a low fixed rate for the next maybe 30 years, they require that you pull all the money out so that there is a greater likelihood that they will make money on your loan even when/if fixed rates go up to 10% or whatever and they are stuck on 4.99%. With an adjustable rate, since it follows the trends, they will always be making current market rates so they have less risk in allowing a LOC.

Unless you have need for all the money within the next 12-24 months, and especially if your parents are closer to 62 than 92, I would recommend that you seriously consider the adjustable rate. Although it also depends on your parent's comfort level with adjustable rates.

FWIW, don't think you can do the fixed rate, and after the loan is closed, you can just pay back what you don't need and have it sitting in a LOC. It is a closed-end loan. Once returned, you can no longer access the money.

If $80k is absolutely all your parents will need in the foreseeable future, they may want to consider as another alternative a new program that came out, the HECM Saver. With this program, they pull out only how much they want, not how much they are eligible for, and this minimizes their closing costs and preserves their equity. Not for everyone; but another alternative.

Lloyd Said:

how would i find a list of HUD couselors for reverse mortgages?

We Answered:

Right here. Look for the ones that list Home Equity Conversion Mortgage Counseling as a service.

http://www.hud.gov/offices/hsg/sfh/hcc/h…

If you're looking to do a reverse mortgage that is what I specialize in. If I can help you in any way please email me at bburns@griffinloans.com