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can I qualify for reverse mortgage if daughter is on title?

Posted on: 10th Oct, 2006 10:08 pm
I am a widow of 74 years. About 5 years ago, I added my daughter to the title in joint tenancy with right of survivorship so that she does not have to bother about probate costs when I pass on. I am doing fine healthwise, but low income as my pension was reduced two years ago. I got to know that I cannot qualify for reverse mortgage because my daughter is on title. Is this true? I even asked her to quit claim her interest back to me but she isn't willing to do that.
The co-owners of a property must be 62 years or above in order to get a reverse mortgage against such property. And, this kind of a loan is offered on the basis of the age of the youngest owner. Your daughter being under 62 years and her name being on the title, you cannot qualify for the loan. So, first of all, you need to get back the property in your name and then apply for the reverse mortgage.
Posted on: 10th Oct, 2006 10:30 pm
hi hannah,

the best thing for you to do is to create a revocable living trust with your daughter named there as the successor trustee and the heir of the living trust assets after you pass on. but prior to this, talk to her and convince her to sign a quit claim deed and transfer the ownership of the property in your name. only then, you will be able to get the loan. after the mortgage is recorded, you can then transfer the title to your property into your living trust thereby avoiding probate costs after you pass on.

know more on reverse mortgage and living trust before you apply for the loan and transfer the property-title into the trust.

god bless you

samantha
Posted on: 10th Oct, 2006 11:09 pm
When you want to transfer the property title into your living trust, you need to wait till the mortgage is recorded. Because lenders offering this kind of loan insist that the title should not be in the living trust when the loan is originated.
Posted on: 10th Oct, 2006 11:53 pm
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