To get a reverse mortgage one should be at least 62 years and above and must possess a primary residence.
All the debts should be paid off before taking the program but if the outstanding amounts are low then it is possible to get a reverse mortgage. The proceeds from the first installment can be utilized to pay off the outstanding debts.
Feel free to ask if you have any more queries. We will be happy if we can help you with your doubts.
Reverse mortgage is a loan granted against the equity of the borrower's home. It can provide tax-free payoff of the existing mortgage, cash advance, a home equity line of credit or the combination of all the options mentioned.
During the lifetime of the borrower no payments are required to be made so far the borrower occupies the home as his/her principal residence. As a result the balance grows larger while the equity gets smaller.
Hope this information helps.
Blue
murphy Guest
Posted: Fri Apr 14, 2006 12:49 pm Post subject:
I would like to add one more things here.
Even if the balance amount due on the mortgage exceeds the value of the home, the borrower can still own the home and need not move out.
If the lender feels that there is a good intention on the part of the borrower to repay the outstanding bills with the proceeds from the reverse mortgage, he may agree to lend you.
But all the bills and the mortgage need to get cleared as soon as the first installment is received.
You can look for some lenders in your area with your requirements and detail and I believe that you will be getting it for your parents.
If you want us to have an appropriate lender for you, we can try it out with our network of some good and efficient lenders present throughout the country.
Don't get worried and just give it a try. I don't think it will be much problem for your parents to qualify if other factors meet the eligibility requirements.
A Reverse Mortgage offers seniors 62 years of age or older the ability to retain their personal and financial independence. Unlike a traditional mortgage that you make payments on each month, Reverse Mortgages provide payments to You - in effect "reversing" the direction of the mortgage payments.
Top Reasons to Obtain a Reverse Mortgage:
Never Make Another Mortgage Payment
"Tax Free" Income via Monthly Payments, or a Lump Sum Payment, or a Line of Credit (or any combination of the three)
You Still Own & Live in Your Home
No Restrictions on Use of the Money
No Income, No Medical and No Credit Qualifications
All Remaining Equity is Yours (or your heirs) To Keep
No Debt will be Passed onto Your Heirs or Family Members
Possible Greater Net Worth after repayment
Reverse Mortgage loan programs receive high praise from sources such as AARP, FHA, Fannie Mae and countless national media sources ... and for very good reasons!
Reverse Mortgages allow seniors to combine mortgage and debt consolidation payment savings with monthly income to realize real financial flexibility!
It sounds like your parents are prime candidates for a Reverse Mortgage ... however, please understand that the fees associated with a Reverse Mortgage are higher than traditional mortgages. Although your parents will not need to pay these fees out of their pocket, the fees will be taken out of the equity of the property when the mortgage is paid-off. If your parents will end-up selling the home in a short period of time, they may want to consider holding-off on a Reverse Mortgage and just using the entire sale proceeds to pay-off their debts.
Hope this helps. Best of Luck! _________________ Bill Clanton is a Mortgage Specialist and Manager of State Street Mortgage of Illinois. StateStreetMortgage.Net
straka
