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Top 4 Reverse Mortgage Pros And Cons Revealed | ARLO™

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When used correctly, a reverse mortgage, also known as the Home Equity Conversion Mortgage (HECM), can add stability to your retirement years. However, as with any financial product, it is not always the best program for everyone. We published this to guide you in making an informed decision about reverse mortgages and assist you in determining if this program is suitable for your long-term retirement goals. #1. Pro: There are no monthly mortgage payments A reverse mortgage allows eligible borrowers to live the rest of their life... Read Full Article

Reverse Mortgage Purchase: Down Payment & Rates | ARLO™

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Did you know that a reverse mortgage can be used to purchase a new home? It sure can, in a process called a Home Equity Conversion Mortgage Purchase. (HECM Purchase) Basically, a new home is bought at the same time a reverse mortgage is taken, and the transaction is rolled into one. The reverse mortgage for home purchase is an option for seniors who want to relocate, either to be closer to family, to downsize, or move to a home that better meets their needs—without having to make monthly... Read Full Article

How a Reverse Mortgage Deed in Lieu of Foreclosure Works

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My mom procured a reverse mortgage when property values were high, in 2005. She can no longer live alone in the home and has vacated it, we cannot sell it because the home has devalued in accordance with the failed economy. The family is attempting to process, through an attorney, a Deed in Lieu of Foreclosure, but the loan has been transferred to 3 different loan companies since mom vacated the property 5 months ago, and they have ignored the attorney's letters and continue to send mailings telling my... Read Full Article

Who is borrower when trust is involved? Trustee, Trustor or Beneficiary?

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We just received a great question from one of our readers: Hey ARLO! Thanks for being around to help so many looking for opinions on Reverse Mortgage questions. I am the Trustee of a revocable trust where my Mother-in-Law is the Trustor & Beneficiary. I thought I was close to signing a reverse mortgage with a Lender. Now the Loan underwriter/lender is having issue with Trustor of Trust as she is unable to take care of her finances. This phrase is included in a letter, requested by lender, from the... Read Full Article

How to Payoff Reverse Mortgage by Selling Home

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Is it true that if an inheritor or owner of a reverse mortgage decides to sell the home, and asks less than the amount of the loan, that the reverse mortgage company holding the note cannot request more than the amount the seller asked? You have asked a question that covers distinctly different scenarios and the answer to each scenario differs based on the circumstances. If a borrower passes and the home goes to heirs, the lender will also order an appraisal and if the property is worth... Read Full Article

Reverse Mortgage Refinance (2021’s Best Rates & Limits)

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HECM Refinance Rates for January 2021. *Rates subject to change without notice. Is a reverse mortgage refinance right for you?  There are many instances when borrowers consider a reverse mortgage refinance with a new reverse mortgage. Refinancing existing loans does make sense at times, and sometimes it does not. Borrower(s) should only consider refinancing their loan when it makes sense for their individual circumstances. Some homeowners will find that they may meet some or all of the... Read Full Article

How a Home Equity Conversion Mortgage Works (HECM)

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In the world of mortgages, one term is a must-remember for senior homeowners: Home Equity Conversion Mortgage, also known as a HECM, or “heck-um.” A breakdown of reverse mortgage loans and how they work reveals just how helpful they can be for qualified senior homeowners who are 62 years of age or older. Here are some common questions and answers for prospective HECM borrowers. What is a HECM? HECM loans are insured through the Federal Housing Administration’s reverse mortgage program. A reverse mortgage enables homeowners to... Read Full Article

Reverse Mortgage Challenges When Going to Nursing Home

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My mother has a reverse mortgage and recently had to go into a nursing home as she is terminally ill. Her reverse mortgage has been sold a few times (that is normal). According to the agreement we had to notify "said reverse mortgage company" that she was no longer living in the property. We were told by phone (we failed to document who, what, where) that we had six months to sell property and possible extensions up to a year. Two weeks later we received a notice that the... Read Full Article

Reverse Mortgage for Veterans? (VA Reverse Mortgages)

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Question from our reader: "We have a reverse mortgage, but we were never told that there was a reverse mortgage for veterans. We have quite a bit of equity in our home. Can we refinance our current reverse mortgage to a VA reverse mortgage?" -Debbie Hi Debbie, FHA and VA don’t offer loans directly. HUD through FHA insures loans and the VA guarantees loans (or at least a portion of the loan), but they still do not offer the loans – it is up to lenders to... Read Full Article

Reverse Mortgage LESA Set-Aside Offers Peace of Mind

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How a “LESA” Set-Aside is Giving New Peace of Mind to Reverse Mortgage Borrowers Reverse mortgages have changed for the better. These mortgages, which allow people 62 and older to tap into their home equity in the form of a non-recourse loan, have new requirements and options making them safer and more sound for borrowers. In 2015, the Federal Housing Administration, which ensures Home Equity Conversion Mortgages (HECM, or the most common type of reverse mortgage) implemented new financial assessment requirements for all borrowers. In addition to required counseling, all... Read Full Article
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