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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

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     130 comments

Who is an eligible non-borrowing spouse on a reverse mortgage? Great Question! There are two types of non-borrowing spouses in a reverse mortgage: eligible and ineligible non-borrowing spouses. To be considered an eligible non-borrowing spouse, you must be married to the borrower when they apply for and close the loan. As an eligible non-borrowing spouse, you must also meet certain requirements, such as living in the home as your primary residence. If the borrower passes away, you can continue living in the home, but you must keep up with... Read Full Article

Beware: Reverse Mortgage Home Warranty Scam

September 12, 2023     8 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

Timeframe to Vacate Home After Reverse Mortgage

August 19, 2023     85 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

Reverse Mortgage Servicing FAQs

July 15, 2023     no comments

  HOW CAN I REQUEST FUNDS FROM MY LINE OF CREDIT? If you selected a line of credit as part of your payment plan option, you may request those funds by sending a written request to the servicing department.  You will receive a Line of Credit draw request form with each monthly statement, provided you have available funds remaining.  The draw request form can be mailed to us (our address is on the form) or faxed toll-free at (866) 616-2160. Once we receive your signed request, it will be processed. ... Read Full Article

4 Ways You Can Lose Your Home With a Reverse Mortgage

June 17, 2023     no comments

A reverse mortgage can be a powerful tool for an American senior aged 62 or older to create a new source of cash flow from his or her home equity. With a Federal Housing Administration-insured Home Equity Conversion Mortgage (HECM), the borrower still retains ownership of the property while continuing to live there over the course of the loan. He or she is not required to make monthly mortgage payments during that time. Reverse mortgages are often misunderstood, and a common misperception is the idea that in... Read Full Article

Facing a Reverse Mortgage Foreclosure? Here Are Your Options.

May 28, 2023     18 comments

Hello Arlo, My mother passed away a year ago. She had taken a reverse mortgage on her home. We later discovered that my mother had not been paying her property taxes, and her home had now been foreclosed. Will they auction the home off? And exactly where do the proceeds of the auction go? If the home sells in auction for more than the reverse mortgage amount. Then where does the rest of the money go? My mother's home is valued at approximately $250.000. I'm not sure, but I think... Read Full Article

What Suze Orman Says About Reverse Mortgages (2011-Present)

May 23, 2023     4 comments

Personal finance experts often address reverse mortgage questions and concerns from the general public, which typically involves a discussion of the pros and cons of these financial products.  Suze Orman, known for years of experience providing personal financial expertise, including hosting the Suze Orman Show on CNBC for over a decade, has often answered questions and provided her opinions on reverse mortgages.  In addition to her time on CNBC, Orman has written 10 New York Times personal finance bestsellers and has frequently appeared as a guest on television shows; today, she... Read Full Article

HUD Can Help Seniors by Raising the Reverse Mortgage Floor Back to 5%

May 20, 2023     1 comment

HUD has always been about serving the underserved. They even issued a Strategic Plan in March of 2022 outlining 5 areas they would concentrate on helping serve the community. You can find that plan online here. What you cannot find anywhere in that 82-page plan is a mention of senior homeowners who have been decimated by high-interest rates and HUD cutbacks in the Home Equity Conversion Mortgage (HECM) reverse mortgage program since 2009 when HUD first started seeing problems with the HECM reverse mortgage program due in part to a... Read Full Article