The house is worth 450,000 and the reverse mortgage amount owed is 300,000. My father has passed away and my mother is listed on the reverse mortgage still. Can my mother and I buy the house from the reverse mortgage company.
Sure, you can pay off a reverse mortgage just as you would a regular one. Of course, you have to credit and income qualify, but you'd be refinancing, NOT "buying the house" as title is retained in your parents' names, not the lenders. Really not that difficult of a process, I'd be glad to help (I write loans in all 50 states) if you have more questions. Thanks, Ted 314-740-0004
You have the right to do anything you want, just like a normal loan (as you already still own the home). The fees of course will be much lower then what was experienced during the Reverse mortgage. My parents are rethinking their current Reverse Mortgage situation, so that when and if one of them pass away, they will be able to income qualify easier now. This will take some of the stress off of them knowing it is already done. They have done a lot of improvements and increased the value of the home since their Reverse was done. Plus the values have rebounded a lot since their Reverse was done. They are even considering pulling more more money if they stay in the Reverse....this can be done if it has been a year since the last one was closed. So again, you have many options available as long as you qualify. Feel free to contact me to discuss your options. I am experienced in all types of residential loans. Hope to talk with you both very soon.
Steven Weinberg 214-914-4654
Your mother is still on the reverse mortgage and she can pay it off at anytime. Usually this is done through a refinance. Since you have more than enough equity, the bank will be looking at her credit history and ability to repay.
You can enter the picture with a quit claim or warranty deed putting your name on the deed. This would allow you to either co-sign with your mom on the loan or take the loan out in your name only (with written permission from your mother).
The title does not change hands on a reverse mortgage, so you do not need to "buy" back anything. Assuming your mother and/or you can qualify for a mortgage, you can simply refinance into a conventional mortgage and pay off the balance due on the reverse(plus any interest she owes.
Bear in mind, you're going to incur closing costs, plus mom is now going to have a house payment as opposed to having none right now. One of the distinct advantages of the reverse mortgage is not having a payment. So think twice before you do this and really think as to what your motiviation would be in taking out a mortgage.
Remember, since mom still owns the home, she can sell it and keep any proceeds after paying off the reverse. Same thing if she dies and you inherit the home. Ownership does not automatically go to the bank. You can do a loan in your name at that time or sell the home and the estate would be entitled to any equity left over after satisfying the mortgage.
Hope this helps and feel free to contact me if you want to look at financing options or if you have any additional questions.
Tony Grech | Mortgage Loan Originator | NMLS 977416 PMAC Lending Services, Inc. Toll free: 855-642-4762 ext 278 email@example.com