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Reverse Mortgage Principal Limit Explained

January 15, 2024 16 comments

I am 87 and received a HECM Loan. The maximum claim is $250,000. Due to age and other factors, the credit limit was expected to reach the maximum claim limit. Withdrawals were denied when the balance was around $225,000, and no withdrawals have been allowed since the servicer has been getting compound interest each month. HUD has been assessing fees...
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Lowest Cost Reverse Mortgage Options in 2025

October 26, 2023 8 comments

What is the lowest cost reverse mortgage? A few short years ago, people were reading about how expensive reverse mortgages were, but that does not have to be the case currently. Don't get me wrong; HUD still charges an initial mortgage insurance premium based on the home's value, which can run as high as 2% for this cost for the higher...
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What to Do If Your Home Suffers Fire Damage with a Reverse Mortgage

October 25, 2023 24 comments

UPDATE: The devastating fires in Los Angeles County prompted the Federal Housing Administration to publish FHA Info #2025-07 as a reminder to lenders about its guidance for servicing and originating FHA-insured mortgages in Presidentially Declared Major Disaster Areas (PDMDA). FHA provides HECM lenders an automatic 90-day extension from the date of the PDMDA foreclosure moratorium expiration date to commence or...
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How Long Can You Leave Home with a Reverse Mortgage?

October 25, 2023 90 comments

How long could that homeowner be absent (e.g., on an extended vacation) before they would be considered not residing in the house? Would they be allowed someone else living in the house to care for them? I will start with the second question as it is more straightforward to answer without reservations. The reverse mortgage does not prohibit a borrower...
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6 Reasons to Downsize (or Rightsize) with a Reverse Mortgage

October 19, 2023 no comments

As we grow older, our housing needs and preferences often change/evolve. The family home that once fulfilled all our needs and still holds a lifetime of memories may begin to feel impractical or burdensome as our family sizes and physical needs change. This is where downsizing, “rightsizing,” or even a move to a more advantageous location is often the best...
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5 Memorable Reverse Mortgage Spokesmen

October 16, 2023 8 comments

Reverse mortgages have had many famous faces over the years. From iconic television and film actors to one-time US presidential candidates, celebrities from all walks of life have espoused the many advantages a reverse mortgage can provide for older homeowners in their retirement years. While spokesmen have come and gone over the years, let’s take a look at some of...
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How to Get Out of a Reverse Mortgage: Your Options Explained

October 10, 2023 43 comments

I have a reverse mortgage, and I’m having problems with it. Was it legal to get a reverse mortgage without my lawyer explaining the situation? I never knew the pros and cons of a reverse mortgage. I think it’s a legal way to swindle homeowners out of their homes. How can I get out of the reverse mortgage? I’m sorry...
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Top 4 Warning Signs a Reverse Mortgage May Be a Bad Idea

October 10, 2023 13 comments

A reverse mortgage can be a viable solution for the right homeowner—primarily seeking a way to age in place effectively. These loans are available to people age 62 or older who have built up a substantial amount of home equity and allow borrowers to generate additional cash flow in retirement. However, a reverse mortgage can be the wrong decision in...
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How to Buy Reverse Mortgage Property at a Foreclosure Auction

October 5, 2023 no comments

I am a Professional Real Estate Investor in Florida. I purchase a lot of properties at the foreclosure auction at the clerk of the courts. My questions are: 1. Is there a way to find out what is owed on a reverse mortgage on a property going to the auction? 2. Is there a formula to calculate the maximum borrowed...
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Here’s How Long it Takes to Close on a Reverse Mortgage

September 26, 2023 34 comments

How long does a reverse mortgage take to close? Can it be completed in a month or less? [arlo_toc] Reverse Mortgages can close in 30 days. Closing a reverse mortgage within 30 days is achievable, particularly when all the necessary elements align perfectly. This ideal scenario includes the borrower completing their mandatory counseling, promptly returning the signed application, and...
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