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Janice Said:

What do you think of reverse mortgage for people 62 and older?

We Answered:

Reverse mortgages are tricky things. I think it's a good idea, but from what I've heard, there are a lot of consumer unfriendly terms in those mortgages, as well as very high fees and commissions. Right now, I think it very wise for anyone thinking about them to take it slow, and even pay a lawyer a few hundred bucks to review the terms.

Enlighten me. Do you get a good commission off of those reverse mortgages. Are there a lot of fees?

Jo Said:

what happens to a reverse mortgage when someone dies and there is a will?

We Answered:

The house will have to be sold to satisfy the outstanding debt. Anything remaining goes to the benficiary- after laywers fees and such.

So, basically, they can not keep the house and can not sell the house on their own to have the money, the estate has to do it and the mortgage gets first crack at the money.


Usually, it is impossible to overturn in court unless you can prove that the family member was not of sound mind when the mortgage was taken out, but that might throw the will into question as well, which would be another headache.


Sorry if its not what you wanted to hear

Seth Said:

I want to do a reverse mortgage for my grandparents. How do I?

We Answered:

A true reverse mortgage hands title over to the bank. For what you want to do, you would have to persuade your grandparents to sell, and specifically to you. Then, I think (not sure) they may get away without a capital gains penalty. Not sure.

This is complex. The wills have to be straightened out so if there is any rivalry you don't lose whatever effort you put into this. Realtors use lawyers. Lawyers usually have a local Bar association. I would think the whole process begins talking to your grandparents and I would think they should have a contract that protects them if you can't afford unforeseen expense (always possible with a house).

Agnes Said:

Reverse mortgage or Equity loan?What is the best, least confusing and fastest way to sell a senior's home?

We Answered:

Yes, there are many opportunities for elders to get taken advantage of in reverse mortgages, so consult a real estate attorney and/or advisor before doing any reverse mortgage.

The most common practice when buying a home is to make an offer on the home you want to buy 'contingent' on the home you own selling first. That means you're not stuck with the financial responsibility for two homes. That does however mean you have to have folks coming into your home to look at it while your grandparents are still living there. So it might not be possible for your grandmother to get your grandfather out of the house on a moments notice when a real estate agent wants to show the house. If your grandparents are financially capable of buying one house, and then selling theirs, that might be best in your situation. Make sure there is no penalty for early payoff of the mortgage, if they intend to pay off the new mortgage with the proceeds from the sale of their home. Some reputable builders offer something called a home trade program, where they will buy your home when you buy theirs. Most will pay close to fair market value. At least 90% of FMV is usually fair to allow them to pay expenses, etc.

Best advise, get a professional realtor to walk you through it.

Carlos Said:

How much more complicated with a reverse mortgage if my wife is on the original note (paid off) and she is 59?

We Answered:

The best approach, unfortunately, is to take her off the title and obtain a reverse mortgage solely under your name.