Posted on: 24th Jul, 2009 01:34 pm
for reverse mortgage, should a person's name on the title or can a company,say , LLC 's name on the title?
Hi jk,
The borrower, who is taking the reverse mortgage, must have his/her name on the title to the property. If an LLC or a company owns the property, the lender will not allow a reverse mortgage on it.
The borrower, who is taking the reverse mortgage, must have his/her name on the title to the property. If an LLC or a company owns the property, the lender will not allow a reverse mortgage on it.
jk9999,
welcome to mortgagefit
reverse mortgage is a nice option for those people who do not have anyone after they die and they have property but do not have any income source.
So they keep their property reverse mortgaged with the bank and get money, either in installments or at one stretch, but once the person is no more, property belongs to the bank.
This is the simple principle of reverse mortgage.
In case of LLC, LLC is never going to die ( as it being a non-living entity) so this concept can not be adopted to the LLC...
keep in touch......
welcome to mortgagefit
reverse mortgage is a nice option for those people who do not have anyone after they die and they have property but do not have any income source.
So they keep their property reverse mortgaged with the bank and get money, either in installments or at one stretch, but once the person is no more, property belongs to the bank.
This is the simple principle of reverse mortgage.
In case of LLC, LLC is never going to die ( as it being a non-living entity) so this concept can not be adopted to the LLC...
keep in touch......
Jenkin is right... For reverse mortgage, borrower's name should be on the title...
A reverse mortgage enables homeowners 62 or older to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. If you avail of a reverse mortgage, it's pretty much as if you're going to be paid to live in your house! The equity that your home possesses can be liquidated into cold, hard cash for your benefit. You'll not only be able to avail of this equity every month, but this money is also tax-free!
A LLC or Corporation can't hold Title because those are Commercial entities and a FHA-insured Reverse Mortgage is for residential properties only.
for reverse mortgage the borrowers must have his name on the title.