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reverse mortgage

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rdmcclure Joined: 08 Dec 2010 Posts: 1 1.44 Dollars($)	Posted: Wed Dec 08, 2010 11:22 am    Post subject: reverse mortgage Like 0 Dislike 0 My mother took a reverse mortgage quite a few years ago when the housing market us really high in Southern California. She left us no info on it, and is now in a nursing facility and my end up being in one permantly. Is it our responsibilty to sell the house if this happens, and what will happen if the if the house will not sell for the amount that she has recieved on this loan. Also she told me that she takes a payment each month and put the rest in some kind of account. Would that be a home equity type acct, and will those funds be available to us for her care in the future?
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Wed Dec 08, 2010 8:00 pm    Post subject: Like 0 Dislike 0 Hi rdmcclure, As your mother is not staying in the house, there are chances that the lender will foreclose the property. The lender will try to recover as much loan amount as possible from the property sale. You won't be liable for paying anything to the lender. As far as your mother's account is concerned, you need to speak to her in order to get the money from that account to pay for your mother's medical needs. _________________ Procrastination is the enemy of your financial success
Ccolette Joined: 09 Dec 2010 Posts: 1 1.34 Dollars($)	Posted: Thu Dec 09, 2010 5:20 pm    Post subject: Reverse Mortgage Like 0 Dislike 0 Hello R.D., Reverse Loan Officer from Los Angeles here. Mom is probably refering to a line of credit. She can take some or all of that line of credit simply by notifying the lender in writing how much of it she wants. For $20-30 they'll give it to her. She can use it for anything she wants including her stay in the convalescent home as long as she hasn't yet been there for a year. If she is unable to go home after a year whatever is in the line of credit will simply be "settled" against what is owed. If the amount due on the loan is close to or more than the current value it may be simpler just to let the lender foreclose on it. Reverses are non-recourse loans so neither your mother or you will owe anything if it's worth less than what the lender gave her. If this is a family home which you want to buy back, however, they'll want you to pay what's owed, not what it's valued at. If she's going to be in the nursing home facility permanently then you'll need to decide if it's worth your while to go through the trouble of putting the home on the market yourself or simply letting the lender foreclose on it. If you need more info, feel free to ask.

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