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Terry Said:

What arand e some reputable reverse mortgage companies?

We Answered:

Nick,
As long as your great grandmother can access enough equity, not only will she be able to payoff her debts, but she also may be able to set up a monthly income stream for the rest of her life, and /or a line of credit that will have a growth factor that she could access at anytime for any need. As far as paying back the Reverse Mortgage, there are no monthly payments, and the Reverse Mortgage becomes due when one of the following happens, 1, she sells the house, 2, the home is no longer is her primary residence, meaning that if she were to be out of the house for a consecutive 365 days(1 year) the home is no longer considered by the lender to be her primary residence, and 3, when she passes away. Any equity left after paying back the Reverse Mortgage is hers to keep, or in the event she passes away the equity goes to the estate. Her children can inherit the house, all the bank cares about is that the Reverse Mortgage is paid back. Lets say the house is worth $200K and the amount owed on the Reverse Mortgage is $100k, her family can get a $100k mortgage to payoff the Reverse Mortgage and thus retain ownership of the home.
Nick, from the time a Reverse Mortgage application is signed, to the time you receive the funds can be between 3-5 weeks. There is mandatory 3rd party counseling(30-45 minute phone call with a HUD approved Reverse Mortgage Counselor),appraisal, loan processing, and the closing. You also have 3 days after the final paperwork is signed to change your mind and cancel the transaction.
I work for one of the top 5 Reverse Mortgage Lenders in the country, and would be able to assist you. More than working with a reputable company, you want to make sure you deal with a reputable person, for instance there a 3 different Home Equity Reverse Mortgages (HECM) known as HECM 150, HECM 125 and HECM 100. You only want to talk about the HECM 100 as it is the lowest interest rate and will allow for the most access to equity. With a higher value home typically over $600K there are Jumbo Reverse Mortgages which may or may not be more suitable to your needs. Both the HECM 100 and the Jumbo products can be done with either a variable rate or fixed rate, and depending on the what the needs are will determine which is best. If you have any other questions feel free to e-mail me, and check out my website for more info.

Stephen
Reverse MortgageSpecialist.com

Patrick Said:

With the housing market declining, how will the value of your home affect the payback of the reverse mortgage?

We Answered:

Most reverse mortgages are non-recourse loans which basically means you can never owe more than the house is worth. Seniors qualify for reverse mortgages based on their age and their equity.

Once the borrower(s) vacate the house, the house can be sold to repay the loan or refinanced into a regular mortgage. If the proceeds from the sale exceed the loan amount, the owner of the house receives the difference. If the proceeds are not enough to pay off the loan, then the bank (or insurance which the bank has on the loan) absorbs the difference.

Hope this helps! Let me know if you have any questions.

Edwin Said:

What are the possibilities of getting a reverse mortgage?

We Answered:

I believe she will be unable to get a reverse mortgage.

When a bank or mortgage company gives you a mortgage against a house, they put a lien on the house. They usually won't do the deal unless they are the first lien. If there is already a tax lien on the home, the mortgage company would be 2nd in line to be paid if/when the house sells, so they will treat the loan like a 2nd mortgage (even though there is no first mortgage). Being a 2nd mortgage will make it much harder to get the loan, and result in much higher interest rates if you do get the loan.

On a practical level, reverse mortgages are horrible. Don't do it.

Edwin Said:

Is there a better solution for the cash strapped elderly than the reverse mortgage? What are big pitfalls?

We Answered:

if you have a lot of money in you house i would suggest you sale downside you house hold and move into a small house or apt!!! i just like to control my own future!!!

Caroline Said:

What is a Reverse Mortgage and are they good loans?

We Answered:

A reverse mortgage is a really great thing if you have lots of equity in your home, and you don't have very much liquidated cash to enjoy your retirement.

Anyways, you can find info and resources about reverse mortgages here:

http://reversemortgageresource.blogspot.…


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Gloria Said:

How do I save my house from a reverse mortgage?

We Answered:

Her estate needs to repay the loan. Period, there is no other way around it. If the loan is not repaid the bank will foreclose on the home and sue the estate for any deficit amount. They gave yoru grandmother cash money, now it is time to repay that cash.