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Is the Reverse Mortgage the Best Choice For You?

October 20th, 2014

Comment: my partner is 71, I am 75, We own our condo in CA  the balance on the mortgage is 52,000 and the approx value is 150,000-160,000.  is this program the best choice for us?   Hi Rudy,   You know, you used the magic words in there, “..the best thing for us“.  We are of the opinion that reverse mortgages are not for every borrower and the little bit of information that you have given doesn’t really give me a chance to answer your question.  Borrowers have to ask themselves if the reverse mortgage program is consistent with their goals […]

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2014 Reverse Mortgage Payment Plans: Lump Sum vs Credit Line

October 9th, 2014

If I take an initial lump sum is it possible to obtain further equity in a lump sum after a number of years or would I have to pay the loan off and get a new loan? HUD allows you to take your loan as a fixed rate or an adjustable rate loan.  The fixed rate loan is a closed-ended instrument and requires you to take all funds available to you in one draw at closing and then there are no future draws available to you.  This would include if you paid down a portion or all of the loan, […]

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Posted in New Reverse Mortgage Programs | HECM 60 | No Comments »

Getting a Reverse Mortgage – How to determine Appraised Value?

October 8th, 2014

how do I determine the appraised value of my home – Lana   Hi Lana,   This is a great question and the answer is not as simple as it may seem.  Let me explain.  An appraisal on a property is an estimate of value based on the information available as of a certain date, a snapshot in time if you will, and it is just one person’s opinion of value.  There are three methods or approaches that are commonly used to determine the value of real property.  Those are: The Comparison Approach; The Income Approach; and The Replacement Value […]

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Reverse Mortgage Vacated Property, Deed in Lieu of Foreclosure.

September 29th, 2014

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 mom that they will continue to service her “loan” as always… […]

Posted in Heirs & Loan Maturity | No Comments »

Reverse Mortgage to Purchase a Condo

September 26th, 2014

If I want to buy a condo for $200k all cash, can I then borrow against the equity in a reverse mortgage? Could I take out a sum certain each month or do I have to take it out all at once? I am thinking that the savings from not paying rent would exceed the interest that the $200k gets in the stock market. Also with my stock portfolio I would be subject to judgments while if I put the money into the condo I would be judgment proof (is this correct? I have no judgments against me now and […]

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Posted in Home Purchase | No Comments »

How to Purchase a Reverse Mortgaged Home

September 25th, 2014

I have found a place that we would like to purchase but the couple have passed away and also found out they had a reverse mortgage on the place. The family don’t want the property and are letting it go back to the mortgage company. How can I get the property with out going through auction and would it have a clean title? Please help me, my family wants this house. – Rhonda   Hi Rhonda,   There is no magical formula that can be used with a home that had a reverse mortgage as opposed to another type of […]

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“My wife is Under 62, can I still do a reverse mortgage?”

September 22nd, 2014

I am 68 years of age, married my wife about three years age. I had my house before I got married. My wife is 54, can I still do a reverse mortgage? And if so how will it affect her? Her name is not on the deed. Gregory N.   Hi Gregory,   Firstly let me say that as of August 4, 2014, this is completely different than it used to be and so anything you read that is dated prior to this time is no longer applicable.  The internet is a wonderful place to get information, but unfortunately, old […]

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Using a Reverse Mortgage for New Construction Purchase

September 16th, 2014

CAN YOU HAVE A CONTRACTOR BUILD A BRAND NEW HOME FOR YOU AND FINANCE IT WITH A REVERSE MORTGAGE UPON COMPLETION ???? PLEASE E-MAIL THE ANSWER TO ME. THANK YOU. BOB   Good Afternoon,   The short answer to your question is, yes you can.  However, there are several things that you really need to keep in mind when you undertake such an action and I feel that I would be remiss if I didn’t tell you some of those items.  There are a couple of different ways that a contractor can build a home for the end buyer so […]

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Can you get a Reverse Mortgage on a Home with Acreage?

September 11th, 2014

does the property have to be 5 acres or less? – Mason C.   Hi Mason,   Wow, I wish I could answer this question in as few words as you asked it!  Unfortunately though, this is going to take a little longer.  Because if I had to answer it in just a couple words I would have to say, “it depends”.  We get this question often and so I will try to give you an answer that doesn’t get too lengthy but also covers enough to be meaningful.   HUD does not have a magic number of acres that […]

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Posted in Appraisals | No Comments »

Reverse Mortgages: Remaining Principal Limit After 12 Months

September 2nd, 2014

My father recently passed away and left his duplex to my brother and I, It is paid for and all taxes are current. I have lived in one side for over 25 years and my brother lives 100 miles away. I would love to keep this place and have my daughter move in next door with a reduced rent. I am 65 years old. The house was custom built in 1976, it’s stucco with a tile roof and is very sound and in excellent shape..I do not have the cash to pay my brother off though and was wondering about […]

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Posted in Reverse Mortgage Q&A: Ask The Expert | No Comments »