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How to Sell Your Home If You Have a Reverse Mortgage

September 26, 2023     112 comments

Is it true that if an inheritor or owner of a reverse mortgage decides to sell the home and asks for less than the loan amount, the reverse mortgage company holding the note cannot request more than the amount the seller asked for? 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. If the property is worth less than what is... Read Full Article

Reverse Mortgage Payment Options: Term, Ten Year & Tenure Explained

September 24, 2023     2 comments

I applied for a reverse mortgage ten months ago with the understanding that I was applying for a ten-year reverse mortgage.  Then, I received a letter from the servicing department that the final monthly payment would end on October 2.  After calling the lender who wrote up the package and then checking, it was determined that the person processing my application entered data incorrectly and that it was only a ten-month, not ten years.  They suggest I use the line of credit available to me, but I have to apply... Read Full Article

How to use a Reverse Mortgage in a Divorce Settlement

September 23, 2023     115 comments

While the concept of a reverse mortgage is often associated with bolstering financial stability for retirees, its utility extends beyond mere retirement planning.  Beyond its ability to aid those meeting the 62-year-old age requirement in enhancing monthly cash flow or eliminating mortgage payments, there exists a lesser-known yet significant application: navigating divorce situations. For couples facing the complexities of asset division, particularly when substantial home equity is involved, a reverse mortgage can serve as a vital financial tool.  By tapping into home equity, it offers a lifeline during the intricate... Read Full Article

Reverse Mortgage Property Requirements (Updated 2024)

September 23, 2023     116 comments

I would like to know the exact reverse mortgage property requirements, such as central heating, water wells, septic systems, etc.  To hear these reverse mortgages advertised, one might get the impression that getting one is very simple.  However, after some preliminary inquiries, it's beginning to look like everything else where the government is involved – it can become incredibly complicated. Exact property requirements vary with each scenario.  For example, HUD does not require homes to have central heat; it just requires an acceptable permanent heat source in working... Read Full Article

History of the Reverse Mortgage – 1969 to Present Day Facts

September 19, 2023     4 comments

Bringing it to the Senate Reverse mortgages have been through many changes in their short, 57-year (depending on who you ask) lifespan.  As the story goes, a small, local bank wrote the first reverse mortgage in 1961 to a woman in Portland, Maine.  The bank owner wanted to help the wife of his high school football coach stay in her home after her husband passed away. From there, the product took off and continues to help more older Americans remain in their homes as they age. 1969 It... Read Full Article

AIG Reverse Mortgage Problems – Please Help!

September 18, 2023     21 comments

I'm going through a company called AIG Reverse Mortgage.  However, I was told to replace 2 wall furnaces first, but I don't have the $2,500.00 to get it done.  The company told me I was responsible before we started the reverse mortgage.  Is this true?  Please Help! AIG would be correct in that HUD requires a permanent heat source in the home to function in all but just a few zip codes in the United States to close a reverse mortgage.  HOWEVER, no, it does not have to be working... Read Full Article

Reverse Mortgage Spouse: “Eligible” vs. “Ineligible” Protection

September 18, 2023     122 comments

Who is an eligible non-borrowing spouse on a reverse mortgage? Great Question! There are two classes of non-borrowing spouses.  One is an eligible non-borrowing spouse and an ineligible non-borrowing spouse.  To become an eligible non-borrowing spouse, the spouse must be married to the borrower when the borrower applies for and closes the loan. They must also meet all the reverse mortgage requirements that the borrower must meet, such as that they must live in the home as their primary residence, and if the borrower passes,  They are still living in... Read Full Article

Beware: Reverse Mortgage Home Warranty Scam

September 12, 2023     6 comments

When I obtained a HECM through ARLO two years ago, the company never said anything about activating a Home Warranty Policy.  The letters claim YOUR company took out a home warranty policy.  Nothing in the stacks of documents provided by your company indicates this fact.  I am now getting letters saying it will expire and that my home is subject to foreclosure if I do not sign up for a Home Warranty Policy.  The letters claim that the policy is required to keep one's home in proper repair.  Such a... Read Full Article

Dave Ramsey Offering Bad Advice on Reverse Mortgages

September 1, 2023     14 comments

Does Dave Ramsey know much about reverse mortgages? Dave does a hit piece on reverse mortgages in which he points out some of the less popular aspects of the loan.  However, he is either OK with exaggerating the truth or reveals his ignorance about how reverse mortgages work. Source: https://www.daveramsey.com/blog/how-reverse-mortgages-work Is Dave right about Reverse Mortgages? Firstly, let’s give Dave his due when he tells the truth.  He is right when he says a reverse mortgage operates in reverse of a standard or forward loan. Instead... Read Full Article

Timeframe to Vacate Home After Reverse Mortgage

August 19, 2023     75 comments

Hello ARLO, My father passed away in October 2018.  He had a live-in caretaker for several years.  I decided to sell the house in California, while the caretaker is occupying the home to keep the property safe and away from squatters and facilitate the viewing.  One offer from a buyer fell through, and the caretaker approached my agent wanting to put in an offer Celink has been working on the short sale approval on his offer for 2 months, with very little communication and feedback.  The appraisal from the lender... Read Full Article