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When to pay back reverse mortgages

Reverse mortgages are payable only when the last surviving borrower dies, sells the property, permanently moves out or when he reaches the end of the loan period. A permanent move is implied when you, the co-borrower, or a qualifying relative has occupied the home for at least 1 year. If you die, the lender will not be able to take the title if your heirs can repay the loan.

When the loan may be in default

The loan will be in default if:

  • You or the co-borrower have filed bankruptcy.
  • The borrower donates or abandons the home
  • You haven't paid property taxes
  • You haven't maintained your home or paid for repairs
  • Your home is no longer insured

Moreover, if the loan has an acceleration clause , the lender may require you to pay down the mortgage if:

  • A co-owner has been added to the property title
  • You have rented out the property to a non-relative
  • You have taken a new loan on your home
  • You have changed the property's zoning classification

Make sure you check the loan documents so you know what situations will cause your loan to default and your repayments to accelerate.

Related Articles
Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

what is the penalties for renting us a house where the landlord has a reverse mortgage and is trying to hide it?

Like | Dislike | Share | Posted: Wed, 02/27/2013 - 12:30 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest!

Welcome to forums!

As you're 64 years of age, you can take out another reverse mortgage and pay off the existing one. It is not mandatory for you take out a forward mortgage. As you had filed bankruptcy 3 years back, I don't think you will face problems in getting a reverse mortgage now.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 08/01/2011 - 23:17

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Steven,

Once your step-father moves out of the property which has a reverse mortgage on it, he can surrender it to the lender and ask him to foreclose it immediately. The lender will place the property in the market in order to find buyers for it. It might take some time to complete the foreclosure sale of the property.

To Wesley,

You can pay off the reverse mortgage in full or refinance the mortgage in your name in order to inherit the home and save the property.

Thanks

Like | Dislike | Share | Posted: Tue, 02/15/2011 - 22:44

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi heaven!

Welcome to forums!

The reverse mortgage lender may call the loan due immediately if he comes to know that you've rented the property. If you've taken out a reverse mortgage, then you should reside in that property.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Tue, 03/22/2011 - 00:13

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Teena,

The lender won't be able to come after you to recover any deficient balance resulting from the sale of the property. As your grandparents have deceased, you can [url=http://www.mortgagefit.com/refinance.html]refinance[/url] the existing reverse mortgage if you wish to save the property. If you don't wish to save the property, then you can let the lender sell off the property.

Thanks

Like | Dislike | Share | Posted: Tue, 09/28/2010 - 23:16

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can you rent to a relative if you do a reverse mortage?

Like | Dislike | Share | Posted: Tue, 03/22/2011 - 07:31 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Unquestionably, Guest, you ought to look into a reverse mortgage of your own to pay off the existing one your Mom had.

Like | Dislike | Share | Posted: Tue, 08/02/2011 - 10:04

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you, George. Personally, I've learned a lot from you and others, reading the responses on subjects I'm not familiar with. Reverse Mortgages are the subject I know best, so those are the posts I feel comfortable commenting on.

Like | Dislike | Share | Posted: Wed, 08/10/2011 - 05:22

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I own two homes. I took out a reverse mortgage on my primary residence a few years ago. Now I want to sell that house. After I do, I will move into my second house. Will I then be able to take out a reverse mortgage on that home?

Like | Dislike | Share | Posted: Wed, 12/23/2009 - 21:47 | Post subject:

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>will anyone be charged for all the stuff in the house? if we do nothing?

Yes. The Estate will be charged for all the fees associated with the foreclosure.

It only makes sense to let the Lender take the house back via foreclosure if there isn't any equity left in it. With foreclosure, the Lender will sell the house and any remaining money will go to the Estate. There'll be a lot less remaining money if the Lender is forced to foreclose.

If the person who is in charge of things, isn't taking care of things within the timeframe they're suppose to, everybody is going to lose. You should expell that person and take over their position and make things happen properly.

Like | Dislike | Share | Posted: Sat, 06/19/2010 - 07:37

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

Once the property is returned to the bank for sale and the property is sold off by the lender to recover the payments, then he won't be able to come after your father for the maintenance of the property as well as the property taxes.

Like | Dislike | Share | Posted: Wed, 09/01/2010 - 00:23

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Tell the company that's servicing your Mother's Reverse Mortgage, that you'd like to refinance it with a Reverse Mortgage of your own, and ask them to refer you to one of their Reverse Mortgage Specialists for that purpose.

If your Mother received her cash in the form of a Monthly Check or Credit Line, there's a good chance there's plenty of equity left in the property for you to be able to refinance it without having to contribute any cash. However, if she converted all her equity into cash when the loan funded, you'll probably have to contribute some cash in order for your Reverse Mortgage to happen. That's because she was 92 when she got hers, and the older you are, the more equity you're able to convert into cash.

If the company that's servicing your Mom's Reverse Mortgage no longer originates Reverse Mortgages, provide me with the most recent monthly statement, and I'll see how it'll work for you.

Like | Dislike | Share | Posted: Tue, 08/02/2011 - 13:15

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>What are my options?

The home is and has been your primary residence, and you're 64, so you qualify to refinance the existing Reverse Mortgage with a new Reverse Mortgage. Tell the company that's servicing the loan you want to exercise that option - their phone number is toll free and listed on the monthly mortgage statement. You may have to contribute some cash, depending upon how your Mother received her cash (lump sum verses Credit Line or Monthly Payment options).

Like | Dislike | Share | Posted: Sun, 07/10/2011 - 14:11

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>Can you rent to a relative if you do a reverse mortage?

You can rent a bedroom to them, but not the whole house. The home must be your primary residence, and you need to occupy it at least 183 days per year.

Like | Dislike | Share | Posted: Sun, 07/10/2011 - 14:16

Caron's picture
Caron | Joined: July 19, 2005 08:37 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Tracy,

Welcome to the Forums.

In a reverse mortgage, the term 'heirs' indicate those who will inherit the property after your grandmother as stated in the will. What you can do is ask your grandmother to talk to the lender if he will allow her children to take over the responsibility of paying the mortgage.

Since the children are disabled, drug addict and unemployed, I guess the lender may not accept the proposal. In that case, if your grandmother can transfer her property title in your name, then after she dies you can take over the responsibility of the mortgage. But your grandmother needs to discuss this with her lender.

Thanks,

Caron.

Like | Dislike | Share | Posted: Thu, 04/20/2006 - 22:49 | Post subject:

jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

I think you should sort it out with the lender. You may be allowed to pay the mortgage when your grandmother is no more. But I guess she's doing well, isn't it? So, don't worry, just talk to the lender and know about the process.

For more details on reverse mortgage, please read this section.

Thanks,
Jerry

Like | Dislike | Share | Posted: Thu, 04/20/2006 - 23:11 | Post subject:

savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi,

You can sell your current primary residence. But you'll have to pay off the reverse mortgage with the sale proceed. You will be able to take reverse mortgage on your second home, provided you use it as your principal place of residence.

Like | Dislike | Share | Posted: Thu, 12/24/2009 - 05:43

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My grandmother currently has a reverse mortgage. My question is; who exactly are considered heirs? My grandmother has 3 surviving children, none of which would ever qualify to take over the loan in the event of her death. One is on disablility, one is on drugs and the other has no (if ever) employment abd basically does home health care. I would hate to she the government take her home which she owes less than 100,000 and resell it for a huge profit. As her grandaughter what can I do?

Like | Dislike | Share | Posted: Thu, 04/20/2006 - 22:30

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you ,Mr. Denton for getting back to me. I am the lady that had the mother who was 92,and I'm 64. In Dec.2010, my mother converted all the equity into cash.The house was appraised then (8months ago)at 92,000.She got 60something thous. The loan due is 74,476.79. She died 8/30/11. I will tell them I want to refinance my own RM, but what do you think it will COST ME? How can I contact you to send a copy of the last statement,if you still need to see it? Thank you so much for your help!

Like | Dislike | Share | Posted: Tue, 08/02/2011 - 20:07 | Post subject:

Samantha's picture
Samantha | Joined: September 16, 2005 11:59 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Saundra,

Welcome to MortgageFit Forums.

I would like to know the problem that your mother is facing with the current mortgage. Since, she already has a reverse mortgage which needs not to be paid back during her lifetime, why is she thinking of getting rid of it?

As per the financial condition that you mentioned, I don't think it will be a wise decision for her to move out of the mortgage at this point of time.

If the financial condition improves somehow and other conditions satisfy, then she can make a change.

The house can't be transferred to you with the reverse mortgage due on it and the mortgage is not transferable to you.

She has to repay the loan first if she wants to change the title. You may talk to your lender for a suggestion. If you want my suggestion, then I would stress on continuing with the loan now.

God bless you.

For MortgageFit,
Samantha

Like | Dislike | Share | Posted: Tue, 04/04/2006 - 09:45

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If I let a reversed mortgage forclose and I'm personal rep. will lender come after me/sue me for the loan or because its a FHA loan, will they just write it off. We have been living with my grandparents for years and suddenly have to move because of there passing. Another year which is a given for a foreclosure, will give us time to save and build credit to move. Please Help!!!!!!

Like | Dislike | Share | Posted: Tue, 09/28/2010 - 10:17

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Can someone put their home on the market 6 months after taking out a reverse mortgage? Please email me at "rushellbongiorno@seacoastrealty.com"

[size=9:c4e24e389e][color=Red:c4e24e389e][Email address deactivated as per forum rules][/color:c4e24e389e][/size:c4e24e389e]

Like | Dislike | Share | Posted: Sat, 10/17/2009 - 08:58 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

You can consult an attorney for that.

Like | Dislike | Share | Posted: Tue, 04/04/2006 - 09:35 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you for such rapid response. Would I need a lawyer for a quit claim deed?

Like | Dislike | Share | Posted: Tue, 04/04/2006 - 09:09 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My mother just passed ,I'm 64 and have lived with her many years.She took out a reverse mortgage this year at 92. she had a will, and left every thing to me. omiting my brothers (by name). She left me a beneficiary deed to the house. I was also left her bank account POD. She had me as her POA @POA heath diretive. Will I be able to keep the house? (I took out bankrupcy about 3 yrs ago) My daughter 29 is leaving for some college classes this fall. I need time to go (50yrs) accumulation here to get in order or sell . I also am legally disabled with RA ,and 5 bad discs. What are my options?

Like | Dislike | Share | Posted: Mon, 07/04/2011 - 18:26 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

House can be put to your name through [url=http://www.mortgagefit.com/quitclaim-deed.html]quit claim deed[/url] and once that is done you can easily sell the house.

Like | Dislike | Share | Posted: Tue, 04/04/2006 - 09:06 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

My parent has a reverse mortgage. Her mobility is becoming very limited but not to the point of being put into a home. She does however desire to move to an apartment based on her income but with the house, she does not qualify. She would like to sell the house (and of course pay back the loan) but that would also considered funds which would cause her not to qualify. Can the house be put in my name, and the house be put on the market to sell (and repay loan)? That way, my mother will not show any assets from the house.

Like | Dislike | Share | Posted: Tue, 04/04/2006 - 08:58 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Guest!

Welcome to forums!

If you rent such a property and if the reverse mortgage lender comes to know about, he will immediately call the loan due. If the landlord cannot pay off the loan, then the property will be in jeopardy as the lender will take steps to foreclose the property.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Wed, 02/27/2013 - 22:02

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

my paren'ts are both deceased. they had a reverse mortgage. Can I get any of the equity thats left out of the house?

Like | Dislike | Share | Posted: Thu, 09/16/2010 - 01:00 | Post subject:

Niicss's picture
Niicss | Joined: October 3, 2005 11:54 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Your parents will not have to pay off the balance dues resulting from the sale of the property. The reverse mortgage lender will be able to recover only the sale price.

Like | Dislike | Share | Posted: Mon, 08/23/2010 - 03:32

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi susie!

Welcome to forums!

You will have to refinance the reverse mortgage into a normal conventional mortgage and keep on paying off the debts in order to save the property. You can contact the local lenders and apply for a mortgage. If you meet the required criteria of the lender, you'll be able to [url=http://www.mortgagefit.com/Mortgage-Basics/do-i-qualify-for-a-mortgage.h... for a mortgage[/url].

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Mon, 07/04/2011 - 22:43

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>Will I then be able to take out a reverse mortgage on that home?

Yes

Like | Dislike | Share | Posted: Thu, 12/24/2009 - 09:21

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I estimate your contribution would be $25,000.00 if you lived in Miami, Florida, or $23,300.00 if you lived in Irvine, California. Florida has extra taxes, thus the reason for the higher amount.

Like | Dislike | Share | Posted: Wed, 08/03/2011 - 07:13

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>Can someone put their home on the market 6 months after taking out a reverse mortgage?

Yes. They can do it after 1 day if they'd like to - there aren't any prepayment penalties. It's not advised though, because the fees to get a Reverse Mortgage are so high. There are short term solutions that are way better then a Reverse Mortgage.

Like | Dislike | Share | Posted: Sat, 10/17/2009 - 09:10

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>since we paid off the debt, are me and my husband entitled to have the deed in our name?

No. The property will be provided to the heirs as per your Parents Will or Living Trust.

Like | Dislike | Share | Posted: Thu, 12/24/2009 - 09:24

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you for your quick reply Mr. Denton .In reference to what I would need to contribute to get this RM.I live in missouri. Will they let me pay it in payments,25,000 is alot of money,it would take all I have and more.How long do you think they would give me to pay that off,if they will. I recieve reg. social security,but I'm disabled now with rhumitoid arthritis. Thanks for taking the time to help me, I need to know what I should do,and what would be the best decision for me. I've lived here 40yrs. Thank you, you have helped me alot!

Like | Dislike | Share | Posted: Wed, 08/03/2011 - 08:11 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thank you for your quick reply Mr. Denton .In reference to what I would need to contribute to get this RM.I live in missouri. Will they let me pay it in payments,25,000 is alot of money,it would take all I have and more.How long do you think they would give me to pay that off,if they will. I recieve reg. social security,but I'm disabled now with rhumitoid arthritis. Thanks for taking the time to help me, I need to know what I should do,and what would be the best decision for me. I've lived here 40yrs. Thank you, you have helped me alot!

Like | Dislike | Share | Posted: Wed, 08/03/2011 - 08:11 | Post subject:

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

well said, raymond. a person can seek to sell a home at any time. that's part of our wonderful set of liberties in the united states.

now, raymond, you have this calculator site (i admit not having checked it out), and yet your last statement cites alternatives to reverse mortgages. are an advocate of them or a denier? i've seen so much publicity in a negative sense lately, and i've been a skeptic all along.

Like | Dislike | Share | Posted: Sat, 10/17/2009 - 09:14

dropframe's picture
dropframe | Joined: August 30, 2010 07:08 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Thanks Adonis!

So are you saying that even though my dad gives back the house, he's still responsible for maintenance and property taxes until the mortgage company decides to sell it? Or is my dad off the hook as soon as he returns the house to them?

Thanks again..

Like | Dislike | Share | Posted: Wed, 09/01/2010 - 06:51

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

You can't make payments. You're going to get your own Reverse Mortgage on the property, and will have to contribute the entire shortfall when the loan funds. I wouldn't wait if I were you, because every month the amount you owe grows larger, and the amount you need to contribute increases. And that's if the home still appraises for 92k. You'll need to contribute more if it appraises for less. Lets hope it appraises for 92k or higher. The amount you'll need to contribute will be less if the home appraises for more then 92k.

Like | Dislike | Share | Posted: Wed, 08/03/2011 - 08:28

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We have a condo with a reverse mortgage and a second vacation home. We are considering moving to the vacation home and we understand that we will need to sell the condo per the reverse mortgage rules. Since the real estate market for our condo has dropped, what happens if we do not get enough to pay off the mortgage.

Like | Dislike | Share | Posted: Mon, 01/25/2010 - 07:59 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

So I pay the shortfall with the money they give me for the reverse mortgage I get on my own. Great! I'm not expecting much at 64,but at least I might get something after I pay them right? I won't have to take money out of my bank account right? Well, I'll get right on it tomorrow. Thanks soo much, Mr. Denton,you've been a great help to me!

Like | Dislike | Share | Posted: Wed, 08/03/2011 - 14:23 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi heaven,

Your query has been replied above by Sussane. Take a look at it.

Like | Dislike | Share | Posted: Wed, 03/23/2011 - 00:17

gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I don't know Raymond Denton from Adam, other than what I've seen on these forums. However, that doesn't prevent me from expressing my opinion that he's one of the more honorable of those who call themselves lending professionals.

Take a good look at the stream of information back and forth between him and Izzy concerning her Mom's reverse mortgage and what can be done. Not once did Raymond try to persuade her to do business with him by touting his integrity, knowledge, expertise, etc. He suggested resources Izzy could use to obtain more information, he provided data about the costs, out of pocket, that she'd have to come up with, and oh yes, one time mentioned that he'd probably be able to be of assistance IF she couldn't get help elsewhere.

Raymond and a bunch of others are among the very good reasons I keep coming back here to participate and also to learn. He's above-board with his commentary, and he knows whereof he speaks.

Raymond, don't go getting a big head now, but face facts - you're honest and professional in situations that honesty and professionalism generally get tossed out the window.

Salud! If I had a customer looking for information about reverse mortgages or a small medical miracle, I'd send that person to denton.org in a heartbeat!

Like | Dislike | Share | Posted: Tue, 08/09/2011 - 18:32

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>what happens if we do not get enough to pay off the mortgage

It's a non-recourse mortgage, so you're not responsible for any loss. If the condo is worth $200k and you owe $300k, you're not responsible for the $100k loss. The lender will file a claim against the insurance to recover the difference.

The insurance premium is the only thing that enables a HUD sponsored Reverse Mortgage to work. People complain about the high fees to enter into a Reverse Mortgage, but the highest fee is usually the insurance premium - but it sure comes in handy when it's time to use.

After you move into your vacation home, you can get a Reverse Mortgage on it too.

Like | Dislike | Share | Posted: Mon, 01/25/2010 - 08:12

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

MY MOTHER HAS PASSED AWAY AND HAS A REVERSE MORTGAGE. WE HAVE NOT BEEN ABLE TO SELL HOME. IT WILL HAVE TO GO TO AUCTION. CAN YOU MAKE AN OFFER TO THE REVERSE MORTGAGE COMPANY FOR A LOWER PURCHASE PRICE

Like | Dislike | Share | Posted: Mon, 06/28/2010 - 14:26 | Post subject:

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I'm a Reverse Mortgage Specialist and have been originating Reverse Mortgages exclusively for the past 5 years, and originate them Nationally. However, I'm not a salesperson - just an information provider. I listen to homeowners and their children, and try to offer suggestions that offer the best solutions. A Reverse Mortgage is just one of many solutions available to Seniors, and when it works it works great. But it's just "one" solution, and all other solutions should be considered too.

Like | Dislike | Share | Posted: Sat, 10/17/2009 - 10:08

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>Can a person start paying off his reverse mortgage, and how can they do it.

Yes, and you can make a payment at anytime, but only if the homeowner has an adjustable program (because they're opened ended programs). If you make a payment, HUD says the minimum amount you can repay is $100.00, and payments will be applied towards interest first, principle second. Call the Servicing Department first (their toll free number is on your monthly statement) and let them know you'll be making the payment, then send it in.

If you're going to do this, and plan on paying it off gradually, I think it's best to pay off everything except the last dollar. Leaving $1.00 in the Credit Line leaves the Reverse Mortgage open. That way, in case you want to get another one in the future, you won't have to pay all those high loan fees again.

Like | Dislike | Share | Posted: Sat, 10/17/2009 - 10:33

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>>CAN YOU MAKE AN OFFER TO THE REVERSE MORTGAGE COMPANY FOR A LOWER PURCHASE PRICE

Yes. I used to think "no", but I've heard otherwise since then.

Like | Dislike | Share | Posted: Mon, 06/28/2010 - 14:50

raymond's picture
raymond | Joined: July 3, 2009 09:38 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

>> live in the house with my father who has a reverse mortage my question - how soon do i have to vacate the house after he dies? is there a time limit?

The Lender wants you to make an earnest effort to pay them back within a reasonable timeframe. You should contact them as soon as you're able (after the last person on Title no longer resides in the house as their primary residence) and let them know what happened. There really isn't a solid established timeframe, but the Lender gets upset when it starts getting towards the 12th month, and oftentimes will tell you to do what you need to do quickly, or they'll foreclose.

It's really in the heirs best interest to pay it back as soon as possible, because their inheritance (equity) gets eaten away while the Reverse Mortgage is in place.

Like | Dislike | Share | Posted: Sat, 10/17/2009 - 10:39

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