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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 some circumstances. Here are some telltale signs a reverse mortgage may be a bad idea: You intend to move closer to family a few years later. If you want... Read Full Article

Reverse Mortgage Line of Credit & Growth Rate Explained

October 9, 2023     118 comments

Reverse Mortgage Line of Credit In 2023, the reverse mortgage line of credit continues to be the most popular option for homeowners to access their funds.  According to an article by AARP, borrowers recognized this choice about 66% of the time when obtaining a reverse mortgage as being the right choice for them. The credit line option allows borrowers a great deal of freedom when planning their finances.  Homeowners like the fact that they can take as much as they want when the loan originally closes up to the maximum... Read Full Article

The Complete Guide to Understanding Reverse Mortgages

October 8, 2023     75 comments

What is a Reverse Mortgage? A reverse mortgage is a loan. It is not a government grant. You are not selling your home to the bank and are still on title to the property. Just like any other loan, you are still responsible for the payment of your taxes and insurance, but unlike other loans, with a reverse mortgage, borrowers are not required to make regular payments of principal and interest or interest only for as long as you live in the home as your primary residence. It is called... Read Full Article

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 amount? 3. Why is the deed recorded with the amount due 50 years later? Hello Jim, I can answer this the way I have been instructed by two... Read Full Article

2023 Government Shutdown: Reverse Mortgage Affects

September 29, 2023     no comments

9/30/2023 UPDATE: Home Equity Conversion Mortgage (HECM) and Expiration of Appropriations Annual appropriations funding the operations of the Federal Government are set to expire at midnight on September 30, 2023. If no appropriations for fiscal year 2024 are passed by that date, the Federal Government will experience a lapse in appropriations. If there is a lapse, FHA will lack the authority to endorse Home Equity Conversion Mortgages (HECMs) after September 30, 2023.HECMs not endorsed before the expiration of appropriations on Saturday, September 30, 2023, will not be endorsed for the... Read Full Article

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? 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 experiencing no delays from service providers. However, predicting which loans will enjoy this smooth and swift process is challenging.  Unforeseen complications can arise at any stage.  Issues like unexpected liens... Read Full Article

How to Sell Your Home If You Have a Reverse Mortgage

September 26, 2023     116 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     118 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