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Reverse Mortgage Commercials: The Impact of High-Pressure Sales

September 7, 2021     no comments

I usually write articles based on the current situation in our industry or the feedback I'm getting from customers.  It seems that now more than ever, I'm getting online blog requests and calls from borrowers telling me they are feeling a lot of sales pressure from loan originators on their reverse mortgage requests. Some of these folks are quite concerned because the lender representative will call constantly and quote everything from company size to monthly volume as a reason for doing the loan with them but not necessarily tangible benefits... Read Full Article

Successor of my Parent’s Living Trust with a Reverse Mortgage

September 3, 2021     2 comments

First off, I absolutely LOVE this site! So informative as it relates to reverse mortgages. Thank you for helping us navigate this reverse mortgage world. My parents had a RM. Mom passed away last year; dad this past June. They had a Living Trust and will. Their house was in the Trust with instructions to sell it and distribute assets to my siblings and me, and their church based on percentages. One of my siblings wants to purchase the house. The lender appraised value is $450k. The realtor comps show... Read Full Article

The Realtors Guide to Reverse Mortgages for Home Purchase

September 3, 2021     2 comments

Because more borrowers can buy homes and that helps your buyers over the age of 62, it helps your sellers and it helps you! Many real estate professionals have been skeptical of reverse mortgage purchase transactions if they have even heard of them at all, simply because they didn’t know anything about them. Some heard a horror story from “somebody who knew somebody who…”, but often, the facts never prove true. The fact is that the HECM (Home Equity Conversion Mortgage or “Heck-um”) for purchase program is an excellent program... Read Full Article

Was my Mother’s Reverse Mortgage Illegal?

September 2, 2021     8 comments

My mother and I were listed as Trustees on the Deed and title of the home she was living in.  I was named executor of her irrevocable trust.  The house was paid in full, but she had an equity loan and medical bills for approximately $27,000.  She told me she wanted to take out a Reverse Mortgage to pay for the equity loan and medical bills.  I advised her of other options besides the reverse mortgage, and she said she would do it anyway.  She qualified for the reverse mortgage... Read Full Article

How Financial Assessment Made Reverse Mortgages Safer

August 31, 2021     no comments

This financial assessment process is conducive to making the Home Equity Conversion Mortgage (HECM) an even safer loan product. If a potential borrower can swallow such an absurdity he need not be concerned about who this financial assessment (FA) is making the product safer for! The FHA wants .50% insurance and will only allow 60% loan to value and now wants additional insurance to secure the loan. What are sheep for if not to be sheared? I understand the skepticism and sentiment and I would wager that with the... Read Full Article

3 Options if You Married Someone with a Reverse Mortgage

August 31, 2021     25 comments

My fiance (age 68) has a reverse mortgage on his home. I believe it was signed in 2017. We live in WA state and have a de facto marriage 9 years now but are going to legally marry this year. What rights do I have to stay in the home should he die? I am 61. You have two different issues and I can only really address one. The first is the title.  If you are not on title to the property and something happens to your spouse,... Read Full Article

10 Tips for Using a Reverse Mortgage for Home Purchase

August 30, 2021     2 comments

Are you planning to use a Reverse Mortgage Purchase?  The following tips will be handy... The sale must be an “Arm’s Length Transaction, " meaning you must buy from a totally unrelated third party.  Purchases involving family members are not eligible. Has the property recently sold?  The property cannot have been sold less than 6 months prior to this sale, as that would be “property flipping.”  HUD does allow for some exceptions for HUD repos.  Check with us BEFORE you make an offer. You will need to be able... Read Full Article

You Keep Ownership with a Reverse Mortgage, Not the Bank!

August 30, 2021     14 comments

With a reverse mortgage, am I applying for both a loan and a line of credit?  Where does the possibility of any cash equity affect me? I had been told this would be a simple transfer of my home to the company, with no further mortgage payments from me for the rest of my life.  Upon my passing, the bank will own my home.  Am I too simple and naive in my understanding and explanation? I remain interested and confused. -Don C. Reverse mortgages are nothing but a loan... Read Full Article

How the SOFR Index Affects Reverse Mortgage Rates

August 25, 2021     2 comments

For several years, adjustable rate reverse mortgages used a variety of indexes which determine a benchmark interest rate that when added to a margin set by the lender, would determine the final interest that borrowers would accrue on their loan. The rules for the choice of an index is that it had to be out of the lender’s control and had to be a readily published rate. LIBOR history and adaption  Some of the more common indexes over the years include the U.S. Prime Rate, the various... Read Full Article

HECM-to-HECM Refinance ‘5-Times’ Benefit Rule Explained

August 25, 2021     8 comments

For some existing reverse mortgage borrowers – particularly borrowers who have a Home Equity Conversion Mortgage (HECM) sponsored by the Federal Housing Administration (FHA) – a number of factors may lead them to ask if it is both possible and/or beneficial to potentially refinance their existing loan into an offering with more advantageous terms. The short answer to this is yes, it is possible to refinance a HECM reverse mortgage. Refinancing can come with several possible benefits, including increasing the amount of money that you’re able to borrow from the... Read Full Article