'Heirs & Loan Maturity' Category Archives

How a Reverse Mortgage Deed in Lieu of Foreclosure Works

September 19, 2022     76 comments

My mom procured a reverse mortgage when property values were high. 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...
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Reverse Mortgage Foreclosure Has No Effect on Heirs

July 13, 2022     25 comments

My MIL and FIL recently entered a reverse mortgage.  The house is in good shape and worth about $150,000.  I expect they will take a large distribution upfront as well as withdraw monthly amounts until they hit the max dictated by the lender. The large distribution up front coupled with fees, closing costs, mortgage insurance, and interest build means that...
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How to Purchase a Home That Has a Reverse Mortgage

July 13, 2022     100 comments

We were looking to buy a home and signed a contract for sale for $730,000.  The house appraised for just over that amount.  Afterward, we learned that the seller owes more than that ($760,000) on a reverse mortgage.  Does HUD/FHA need to approve the sales price before we can close?  The seller can complete the transaction because the sales price...
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Here’s How Much Time is Allowed to Pay Back a Reverse Mortgage

May 10, 2022     2 comments

Hello ARLO, My stepmother is in her 80's, has dementia, and is the sole Trustee of a Family Trust set up by my father years ago. My brother and I are the beneficiaries. A few years back her neighbors advised and assisted her in placing the house (which had been assigned to the Trust and is in the name of...
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What Happens When Your Reverse Mortgage Money Runs Out?

September 13, 2021     19 comments

My parents have a reverse mortgage with a line of credit that has run out of money. It was very helpful to them for many years. One parent is in a long-term care facility and on Medicaid. My other parent is living in the home, and my understanding is that I can live there for as long as I am...
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Issues with Reverse Mortgages & Adult Children Living in Home

September 8, 2021     24 comments

My mother has a reverse mortgage and I've been reading and trying to understand it all. Basics... her house was appraised at 390,000 back in 2007, she owed 113,000 on a previous loan. "Original principal limit" 234,000 minus the 113,000 leaves 121,000. Her payment plan was the line of credit which was 99,000. First question; where does or who the...
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Selling an “Upside-Down” Reverse Mortgaged Home

July 7, 2021     14 comments

I am still confused about debt after I sell. My wife and I have a current reverse mortgage debt of $300K on a Seattle (98146) house valued by Zillow at $310K. At time of reverse mortgage award it was appraised at $380K. We took out the reverse mortgage about 15 years ago thinking it would be our home until death....
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What Happens When You Inherit a Reverse Mortgaged Home?

July 1, 2021     4 comments

Hi ARLO, my mom passed away, I have inherited her home with a reverse mortgage on it. Can I still try and refinance the loan or home, or do I have to get a home loan myself? The reverse mortgage becomes due and payable when the last borrower on the loan is no longer living in the property.  If mom...
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How to Obtain a Partial Reconveyance from the Lien-holder

October 29, 2018     8 comments

My neighbor has a reverse mortgage loan, but she has passed away and her relatives live in the home. They are now in the process of selling the home. They have 5 acres with the home and I am interested in buying an acre of the land that borders my property. Is there a way to buy the land and...
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Reverse Mortgage Options with Disabled Child

October 22, 2018     6 comments

My parents have reverse mortgage. My dad died 5 years ago, my mom is in a nursing home, and I am a 53-year-old disabled woman living in the home. What do I do about living in my home? I have no place to go! - Sylvia Hello Sylvia, I am very sorry to hear of your circumstances. ...
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