As Population Ages, Reverse Mortgages May Finally Catch On

RE:As Population Ages, Reverse Mortgages May Finally Catch On

Harv — Fri, 27 Jun 2008 11:00:00 GMT

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????

RE:As Population Ages, Reverse Mortgages May Finally Catch On

Anonymous — Fri, 27 Jun 2008 11:00:00 GMT

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.

RE:As Population Ages, Reverse Mortgages May Finally Catch On

Mike G — Thu, 08 May 2008 11:00:00 GMT

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.

RE:As Population Ages, Reverse Mortgages May Finally Catch On

calvin — Sat, 08 Mar 2008 13:00:00 GMT

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

RE:As Population Ages, Reverse Mortgages May Finally Catch On

Raymond Denton — Sun, 22 Jul 2007 11:00:00 GMT

>>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.

RE:As Population Ages, Reverse Mortgages May Finally Catch On

Virginia — Fri, 20 Jul 2007 11:00:00 GMT

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?

RE:As Population Ages, Reverse Mortgages May Finally Catch On

Vivian — Sun, 24 Jun 2007 11:00:00 GMT

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!!!

RE:As Population Ages, Reverse Mortgages May Finally Catch On

jIM jONES — Sun, 20 May 2007 11:00:00 GMT

Why would you have to pay mortgage insurance when you have equity in your home? Thanks

RE:As Population Ages, Reverse Mortgages May Finally Catch On

Van — Wed, 25 Apr 2007 11:00:00 GMT

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.

RE:As Population Ages, Reverse Mortgages May Finally Catch On

Susan — Sun, 25 Mar 2007 11:00:00 GMT

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.

RE:As Population Ages, Reverse Mortgages May Finally Catch On

Norm — Sat, 24 Mar 2007 11:00:00 GMT

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"

RE:As Population Ages, Reverse Mortgages May Finally Catch On

anonymous — Sat, 10 Mar 2007 13:00:00 GMT

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.

RE:As Population Ages, Reverse Mortgages May Finally Catch On

Jeff — Wed, 14 Feb 2007 13:00:00 GMT

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.

RE:As Population Ages, Reverse Mortgages May Finally Catch On

Del Johnson — Sat, 03 Feb 2007 13:00:00 GMT

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

RE:As Population Ages, Reverse Mortgages May Finally Catch On

Anonymous — Tue, 09 Jan 2007 13:00:00 GMT

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.