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Financing Reverse Mortgage Payoff with new loan help

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jmiller31 Guest	Posted: Sun Dec 19, 2010 7:51 pm    Post subject: Financing Reverse Mortgage Payoff with new loan help Like 0 Dislike 0 Ok so here's the situation, we have lived in my mother's house (w/her) for the last few years. She currently has a reverse mortgage on it that is only about half of what the houses are selling for in the neighborhood. The title of the house is in the name of her living trust that I am trustee for. My mother is in failing health and she will live out the last of her days here. We don't have to officially own the house until after she passes and that would probably make things simpler. However with rates starting to rise I'd like to lock in as low a rate as possible so that means taking care of the transfer now. So I'm not sure exactly where to begin with this. We're in CA so we can keep the low property tax basis by doing an inter-family transfer but does the loan have to work as a purchase? If we do a purchase then in theory she has capital gains on the sale right? Any advice or pointers in the right direction would be greatly appreciated. _________________ Need help choosing the right loan? Get free consultation from community lenders/consultant
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Sun Dec 19, 2010 8:26 pm    Post subject: Like 0 Dislike 0 Hi jmiller, If you get the property transferred in your name now, your mother will not be able to receive reverse mortgage any longer. In order to get the reverse mortgage, the owners of the property should be 62 years of age. If you're not 62 years old, you won't be able to receive reverse mortgage. Thus, before taking any further step, I will suggest you to contact an attorney and take his opinion in this regard. _________________ Procrastination is the enemy of your financial success
jmiller31 Guest	Posted: Sun Dec 19, 2010 8:42 pm    Post subject: Like 0 Dislike 0 Hi adonis, I'm well aware of that, that's the point of doing a new mortgage in myself and my wife's name. We need to do this either now or wait until she passes. I'm just trying to figure out what the best logical sequence of events are, regardless of what we do and when we do it the reverse mortgage goes away.
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Sun Dec 19, 2010 9:09 pm    Post subject: Like 0 Dislike 0 Welcome back jmiller, You and your wife can take out a mortgage now. However, once you get the property transferred in your name, you'll have to pay off the existing reverse mortgage. If you can do so, you can go ahead and transfer the property and the mortgage in your name. _________________ Procrastination is the enemy of your financial success
Troy99 Guest	Posted: Sat Feb 12, 2011 9:26 am    Post subject: getting extra money on our reverse mortgage Like 0 Dislike 0 We have a reverse mortgage now, but since we got it we have made a lots of improvements on the house and property. Are we able to get any extra money because of that.
adonis Joined: 22 Oct 2005 Posts: 10562 Location: ALASKA 1089.18 Dollars($)	Posted: Mon Feb 14, 2011 12:59 am    Post subject: Like 0 Dislike 0 Welcome Troy, You can try and refinance the reverse mortgage. You should contact your present lender and check out if he will help you in refinancing the reverse mortgage. _________________ Procrastination is the enemy of your financial success

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