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Raymond Said:

Does any one know about reverse mortgages?

We Answered:

They can't unless he comes off title.

Passes away, the estate can either buy back the house, or deed it over to the lienholder.

Usually it goes back to the bank holding the lien

Paula Said:

My Parents are looking into Reverse Mortgages are they a good choice ?

We Answered:

Reverse mortgages are great products for the right people. Your Parents may be prefect candidates for a reverse mortgage.

Reverse mortgages are the most misunderstood and most regulated loan in the country. The problem is the myths keep getting repeated and repeated. Make sure you get the facts.

Mistakes in other posts - There is no LTV for reverse mortgages nor are the borrowers required to escrow for taxes and insurance. The fees on the HECM, Home Keeper, and Cash Account are limited by law. The fees are no higher than traditional mortgages. People believe the fees are higher with a reverse mortgage as with a traditional forward mortgage all the money is borrowed at closing. With a Reverse Mortgage, the money is borrowed over time, so the fees seem high at the time closing, but become less and less as a percent of the loan over time.

Reverse mortgages are not a “whole system” that “preys” on Seniors, nor a “waste of home equity” versus selling and going into assisted living. You didn’t mention that your parents had any issues that they would need to go into assisted living? Even if they did, they would be required to use up all their savings and assets before Medicaid would kick in. A reverse mortgage will allow them to stay in their home and on average seniors that stay at home life 4 years longer then those that do not.

A Reverse Mortgage is a special loan designed for Seniors, aged 62 and older, that allows eligible homeowners to borrow money without having to make any payments until they sell or pass the home onto their estate.

With a Reverse Mortgage, the Bank pays your Parents versus your Parents paying the Bank.

AARP, National Council on Aging, etc., lobbied the government to come up with a loan program to help Seniors stay in their homes as long as possible.

Basically, a reverse mortgage allows your parents to use their home to stay in their home and have a better life.

Pros:

- Remain independent - A Reverse Mortgage allows Seniors to have the money to stay in their homes without relying on others for support.

-Stay in their home - A Reverse Mortgage allows Seniors to remain in your their homes and retain homeownership.

-No monthly mortgage payments - They do not pay back the Reverse Mortgage loan nor make any monthly mortgage payments until you permanently move out of the home.

-Tax-free money - Because the money they receive from a Reverse Mortgage is not considered income, it is tax free and will should not affect their Social Security or Medicare benefits.

-Freedom and flexibility - The money they get from a reverse mortgage is theirs to use in any way they choose.

Cons:

– You don’t get anything for nothing. Just like a regular mortgage, there are fees and interest. But they would not pay anything until they permanently left the home.

Go to http://www.mtgmortgages.com/reverse_mort… for information on reverse mortgages.

Go to http://www.mtgmortgages.com/reverse_mort… for links to other reverse mortgage publications.

I would also see an Elder Law attorney and get a Life Estate to protect their home equity from the State should they require Medicaid. The look back period is now 5 years on real property transfers.

If you email me their birth dates, address, and the amount of any mortgage/liens they have on the house, I am happy to send you some figures.