| If I draw down all of my credit line under a RM, what is there left for me to do in order to maintain the expenses on my home? Seems like I'm back to square one with no money and now no equity left in my home. |
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| Above Posted By:
Anonymous
| Fri, 27 Jun 2008 19:10:08 EST |
| If I take a RM for the full appraised value of my home and oulive the payout then what are my alternatives. I'll have no money, no more monthly checks but still be in a house that needs to be supported ie: taxes..maintainance. Am I just deferring being homeless?? A lot easier, and less costly alternative might be to just downsize my living quarters???? |
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| Above Posted By:
Harv
| Fri, 27 Jun 2008 18:54:13 EST |
| The last comment states that he was concerned about what was not revealed. Huh? This has to be the highest disclosed financial product in existence. FHA disclosures can be up to 100 pages of protection! Insurance disclosures indicates the right to shop for your own carrier. Lenders will not proceed to close ANY reverse mortgage which falls out of compliance or is a loan that violates Truth In Lending. This is a highly regulated loan product and one of the safest out there. |
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| Above Posted By:
Mike G
| Thu, 8 May 2008 14:04:28 EST |
| I studied the reverse mortgage requirements and was concerned about what was not revealed,fees were high and non negotiable several insurance policies were required but no cost given,this is a violation of the truth in lending statuates
Why are fees non negotiable? the risk is so minute why all the insurance that only favors the bank?
A review of this program should be conducted to reduce and clear up the costs involved |
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| Above Posted By:
calvin
| Sat, 8 Mar 2008 13:56:10 EST |
>>I live in a co-op here in Orange County, Ca. Is this eligible for a FHA/HUD reverse mortgage?
No, you'd have to use HUD's Homekeeper program, at least until the FHA modernization bills takes effect. When it does, you'll be able to get a FHA-insured Reverse Mortgage with a co-op. |
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| Above Posted By:
Raymond Denton
| Sun, 22 Jul 2007 17:37:35 EST |
| I hear the cost of getting a RM is very expensive. I realize there will be an appraisal, plus verification of the title and that there are no liens, that all taxes are current, etc. Are the "closing costs" based on a percentage of the amount requested? I don't object to covering the costs the mortgage company incurs plus a profit, but from what I read a person really gets gouged. If RMs are designed to help seniors continue to support themselves, why are the cost so exorbitant?
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| Above Posted By:
Virginia
| Fri, 20 Jul 2007 16:15:13 EST |
| What all is calculated in the total amount of repayment? Since credit and income is not a factor for rm loan, how is amount of loan determine? What negatives should I look for before making a final decision? Help!!! |
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| Above Posted By:
Vivian
| Sun, 24 Jun 2007 20:45:56 EST |
| Why would you have to pay mortgage insurance when you have equity in your home?
Thanks |
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| Above Posted By:
jIM jONES
| Sun, 20 May 2007 05:20:53 EST |
| Norm, your questions are related...
Net sale proceeds would be, in an arms length transaction (not a discounted sales price to a relative,etc), the fair market sales price less brokers commission and any other seller paid closing costs. IF that amount is, in fact, less then the outstanding balance of the reverse mortgage the LENDER absorbs that shortfall. It is NOT an obligation of the borrower or their estate.
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| Above Posted By:
Van
| Wed, 25 Apr 2007 09:20:13 EST |
| There may be a DOWN side to this thing..my Mom took out a RM and drew 50k to pay bills & make home improvements. Suddenly she's hit with a bill for $3000 a year to pay "mortgage insurance" on the loan. So she will be forced to draw MORE off the loan to pay their fees. Its ridiculous. She can't get answers from the mortgage company..why? Because they didn't disclose this to her in the paper signing and while not fraudulent, it was a sneaky thing to do. Shame on them. |
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| Above Posted By:
Susan
| Sun, 25 Mar 2007 00:17:34 EST |
| My wife and I are both in our 70's and looking at a reverse mortgage. We have two questions 1.Who is liable, if the value of our house drops below the amount we have borrowed on it?2. What is the definition of "net sale proceeds" as used in the Limited Liabilety clause which says, "Your liability under the Plan is limited to the net sale proceeds from the sale of your property" |
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| Above Posted By:
Norm
| Sat, 24 Mar 2007 07:35:12 EST |
| My mother and I co-own a co-op apartment (both our names are on the title). I am well under 62, but my mother is 71 . The co-op is the primary residence for BOTH of us. So what I'm wondering is this: Can I sign over my shares to my mother so that she can qualify for the Reverse Mortgage while I still reside there ? (I am perfectly willing to sign any type of legal waiver/document promising to vacate the premises immediately if my mother's tenancy should expire for any reason). Thanks readers. |
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| Above Posted By:
anonymous
| Sat, 10 Mar 2007 19:51:45 EST |
| Just ran across this site. I am in the industry, but do not sell the RM, however I do think the product is good under the rights circumstances. One thing I see here is a lot of people turned off re: fees or costs of the RM. My only comment is "compared to what?" The value of not having a mortgage payment is huge - sleep, less stress, etc. Not to mention the other alternatives to accessing the equity (i.e. selling house, Home Equity loan) carry costs, payments, time, effort, stress, etc. |
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| Above Posted By:
Jeff
| Wed, 14 Feb 2007 11:55:03 EST |
| I have a reverse mortgage with Wells Fargo. Since we took out the mortgage in 2002 our house has appreciated at least $70,000.00. Since my husband died I would now like to refinance and take advantage of appreciation. Will I have to sell my house in order to do this or can I refinance and renew the reverse mortgage at the higher value of my property. Or am I locked into the original appraisal of the worth of my house. In other words can I take advantage of the additional appreciation? DJ |
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| Above Posted By:
Del Johnson
| Sat, 3 Feb 2007 15:58:40 EST |
| The RM seems like a very expensive way to get money. I believe in addition to the high fees and charges to get it, that the interest (which I understand to be at a very high rate) will be compounded on the principal plus accrued interest.
There has to be much better ways to achieve the goal other than to take advantage of deep pocket seniors and make unreasonable profits for institutions. |
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| Above Posted By:
Anonymous
| Tue, 9 Jan 2007 13:36:51 EST |
| >>The reverse mortgage contract was combined with an annuity.
You won't find this combination with any of the Reverse Morgages sponsered by the Government. So always ask for a goverment sponsered Reverse Mortgage. The most popular government sponsered Reverse Mortgage is the FHA-insured Reverse Mortgage and it never allows an anniity to be combined with it. |
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| Above Posted By:
Raymond Denton
| Wed, 13 Dec 2006 20:35:57 EST |
| A reverse mortgage can be a powerful financial tool for seniors looking to take advantage of some of the locked-up equity in their homes. When it comes to RMs COMBINED with an annuity, be exceptionally careful! Find a loan officer that explains EVERYTHING in detail, (you don't need an annuity with the RM) and is looking out for your best interest (not theirs). Talk to a friend that has a RM, ask them how they like it, and who they used. |
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| Above Posted By:
David
| Sun, 29 Oct 2006 12:44:36 EST |
| Read the fine print. In a recent case, decided in California, a couple took out a reverse mortgage. After they had received $29,820, they decided to sell the house. To release the lien, they had to pay $172,139! The reverse mortgage contract was combined with an annuity. Under the contract, lender also shared in subsequent appreciation. There were title, escrow, and loan origination fees. And the annuity premium. Have the documents reviewed by a lawyer or accountant before signing them. |
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| Above Posted By:
John
| Mon, 9 Oct 2006 19:30:36 EST |
| Dear Mr.Denton - In answer to your question of Aug. I4, I believe my children do not fully understand about the reverse mortgage, and I guess neither do I. For some reason, I do not trust it - as many people do not, plus the fact the closing costs are very high, it seemed I could not get anyone to tell me the rate of interest on the loan, plus there is a monthly service charge. I really do need the money, as I will be incurring some large medical bills soon. GEaton
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| Above Posted By:
g eaton
| Tue, 5 Sep 2006 00:05:16 EST |
| Why do you feel your children think it's not good for you Glenda? |
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| Above Posted By:
Raymond Denton
| Mon, 14 Aug 2006 22:36:54 EST |
| I have a $300,000 mortgage which leaves $350,000-$400,000 equity in my house. What kind of income would that provide monthly for me with a reverse mortgage, after paying off that $300,000 mortgage? |
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| Above Posted By:
Mary
| Thu, 27 Jul 2006 05:52:32 EST |
| Dear Mr. Denton:
Just found your answer regarding my question about the reverse mortgage. Just yesterday, I was to close on a deal and could not do it. My children are not concerned about leaving them less money in an estate. I believe they sincerely think it is not a good thing for me. The decision was left entirely up to me. It appears I have goofed. The lender was Wells-Fargo. I think what turned me off are the large closing costs one will incur, and that is just for starters.
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| Above Posted By:
glenna
| Thu, 27 Jul 2006 02:33:11 EST |
| It sounds like a Reverse Mortgage would work well for you Glenda. I'm wondering why your children don't approve ... is it because they'd be loosing some of their inheritance? Personally, I think it'd be better to improve your quality of life. You're the one who worked hard to pay off your house, now it's time for the house to pay you back. |
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| Above Posted By:
Raymond Denton
| Wed, 12 Jul 2006 12:12:14 EST |
| I am seriously working on obtaining a reverse mortgage. I am a 75 years old widow, own my home debt-free, but am living almost entirely on Social Security. I have a very new car (which is my main concern) that I still owe a balance of $9600. Would like to be out of debt entirely, as the payments on the car are difficult for me to pay. I am living on approx. $1000. a month. My children don't really approve of the reverse mortgage. What is the best thing for me? Need help - please advise! |
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| Above Posted By:
Glenda
| Thu, 20 Apr 2006 23:50:30 EST |
"The proceeds of a reverse mortgage can be annuitized into a life income paid monthly - that takes a persons poor health into account and gives a much larger - post from Joffrey on June 16.
Who is offering this type (selective pricing) of annuitization? |
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| Above Posted By:
Anne
| Wed, 2 Nov 2005 19:13:13 EST |
| Two or more people who are not related can get a Reverse Mortgage as long as they're both at least 62 and on Title. |
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| Above Posted By:
Raymond Denton
| Sat, 15 Oct 2005 10:39:20 EST |
| I live in a co-op here in orange county , Ca. Is this eligible for a FHA/HUD reverse mortgage? |
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| Above Posted By:
B. Gilman
| Sat, 23 Jul 2005 23:31:29 EST |
| Can two people that are not related but live in a home that is their principal residence, are 62 years and older, and are joint on the deed, obtain a reverse mortgage as joint borrowers? |
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| Above Posted By:
Doug Wiles
| Mon, 4 Jul 2005 03:07:04 EST |
| The proceeds of a reverse mortgage can be annuitized into a life income paid monthly - that takes a persons poor health into account and gives a much larger payout that a regular annuity. This can pay for home care services and keep a senior in their house versus selling it to go to a nursing home and ending up on Medicaid. A much better solution for some! |
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| Above Posted By:
Romeo Raabe
| Fri, 17 Jun 2005 11:12:50 EST |
| They can stay in the house, as the previous post stated, as long as they are alive. As we reverse mortgage lenders work hard trying to educate the rest of the mortgage community about reverse mortgages, the media should accurately report about this area. Your editors should print a correction. |
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| Above Posted By:
Joffrey Long, CMC
| Thu, 16 Jun 2005 12:01:05 EST |
| The primary concern for heirs is the use of the home to fund current living expenses. BUT their is a minority (personal experience is about 2 in 10) who want the home to remain debt free so when their parent (s) die they are left with a substantial inheritance (sale of the home). |
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| Above Posted By:
Kevin Conlon
| Thu, 16 Jun 2005 10:50:11 EST |
| The disadvantages listed are a complete fallicy. The borrower does not have to sell the home or refinance the home ever. There is no maturity date on the reverse mortgage, therefore the borrower can remain in the home until they are 173 years old if they like without ever haveing to sell or refinance. The loan is repaid when the borrower no longer occupies the property for more than 1 year.
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| Above Posted By:
Anonymous
| Thu, 16 Jun 2005 00:13:41 EST |
| Reverse mortgages do not expect repayment while the borrower lives in the home as the primary residence. Your article is erroneous on this point. The comment about fraud is puzzling. What fraud? In the few cases reported, it was the lenders who reported the problem to HUD. Find a loan officer through the National Reverse Mortgage Lenders Association. |
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| Above Posted By:
Larry Bullock
| Wed, 15 Jun 2005 18:03:33 EST |
| Are there any other reverse mortgage pitfalls? Ive heard about reverse mortgage fraud in the news. Can anyone explain what this is about? |
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| Above Posted By:
Anonymous
| Wed, 15 Jun 2005 14:15:41 EST |
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