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Grace Said:

is there a minimum loan amount in a reverse mortgage?

We Answered:

He wants a home equity loan, not a reverse mortgage.

In a reverse mortgage the bank basically buys the home from you with monthly payments. They do not just give you some money and not expect it back.

Because he wants so little a personal loan would be easier then a second mortgage.

Pearl Said:

I live in my grandmother's house, which has a reverse mortgage on it. If she passes, will I have to pay?

We Answered:

It would be important to review the provisions in the loan documents your grandmother signed. But, typically, upon your grandmother's death (and she was living in her home at the time of her death), if you wish to keep the house (and let's assume you are her only heir for this example), you would have a period of time (usually one year) to secure a loan and repay the loan on your grandmother's house.

If you choose not to keep the house, you would not be responsible for repayment of the loan nor would any of your grandmother's other assets be affected by the house loan (the other assets could not be attached). If the house is worth more than the loan, you would have up to one year to sell the house and repay the loan and the remainder of the sale proceeds would be yours.

But, as I said, you need to know what is in the loan documents your grandmother signed.

Delores Said:

Reverse Mortgage catastrophe! What to do now?

We Answered:

Call the mortgage company yourself. They are usually pretty nice and will talk to you. Tell them the situation and see if they will set up low payments for your mom temporarily. In the meantime she needs to get a lawyer to sue her husband. Your mom can probably use your support as well, let her know it will be OK. It's hard to get things done if you are anxious.

Billy Said:

Reverse Mortgage Question?

We Answered:

Most reverse mortgages are set up as non-recourse loans. If the bank forecloses, they may be stuck and unable to come after him for the difference. In that case, they'd issue a 1099-A for the amount of the unpaid loan and that would become your dad's "sale price."

Earl said:

My wife and I own our home and would like to purchase a different home closer to services. Can I take a reverse mortgage and take a lump sum to pay off the home we would like to purchase.

Earl said:

My wife and I own our home and would like to purchase a different home closer to services. Can I take a reverse mortgage and take a lump sum to pay off the home we would like to purchase.