Reverse mortgage for Seniors

Hi, gschroeder

Reverse mortgage doesnt require repayment while you or your spouse continue living in your home, the full amount becomes due upon the death of the last surviving spouse, when your home is sold, or if you move out.

Under it borrower gets complete freedom to sell your home or move at any time.

Thanks

Hi Gschroeder,

Welcome to MortgageFit Forums.

As Mac said reverse mortgage is a program for the house rich and financially poor persons. Now, in a reverse mortgage you are able to get the loan depending on the equity of your house, location, age and some other factors.

This program is meant for the senior home owners who is having a house but doesn't have enough money to carry on with his expenses further.

You can't be forced to repay the loan or leave the house as long as you live in that house but, once you sell it or move out of it the mortgage loan becomes due.

Same conditions apply on the death of the last surviving borrower. Under such condition if you or your heirs want to keep the house then the loan has to be paid back or else the house is sold to recover the money.

That is why it is advisable to analyze your condition and requirement before you apply for a reverse mortgage program. You can check in here for more detail on reverse mortgage.

Feel free to ask if you have any more queries.

God bless you.

For MortgageFit,
Samantha

Hi there, I just loged on, had a few quick questions, my parents own their home, but are at a financial struggle, they own a debt to the IRS, can this reverse mortgage help pay the debt owed the the IRS and how long is a a reverse mortgage?? and about how much does it cost, and how do I go about getting this started for them if I is the best solution, my dad is 63 and my mom is 62, the only income is my dad's and that is very little, they pay out more than he makes every month to the debt of a bankruptcy and IRS. Can this help them live a bit more at ease??
Thank You for you time and response.

Lucy
Chula Vista, Ca

Hi Lucy

I understand you are going through a hard time, but be patient as soon you will find yourselves surrounded by all the happiness of the world.

Yeah, reverse mortgage can be good option for you, but again you need to keep all your papers good infront of lenders. The money which your parents will recieve will help them to clear their debts also.

And the best part of it is you only have to pay when either the borrower dies or he sells the property or permanently vacates the property. So you can look around for it.

Good Luck

My husband and I are thnking of a reverse mortgage. What I want to know what happens if after you get the reverse mortgage and someone wants to put a lien on the property for a past debt. What happens. Is the house under the name of the mortgage company that owns it

Hello Kate,

The reverse mortgage has the primary lien on your property and any other lien is secondary to that.

The title and ownership of the house still remains with you even after taking out a reverse mortgage.

Hi Kate,

Any past debt should be cleared out before you apply for a reverse mortgage. I'm not sure as to whether you have already got the mortgage but no lender would approve of such a loan when you already have a past debt. And, even if a lender approves, you need to pay off the debt using the loan proceeds. So, the question of a secondary lien does not arise.

Thanks.

I had a car accident, my fault, and there were injuries. My auto insurance does not cover the personal injuries and I have a reverse mortgage. Can the plaintiff's lawyer attach a lien to my house?

Hi Betty,

Welcome to the forum.

You can use your reverse mortgage proceeds to pay for the personal injuries, isn't it? do you receive reverse mortgage proceeds in installment? I don't think any plaintiff can attach a lien to your home.

Hope this helps..

may god bless you.

Samantha

How much can a person deduct from there irs on the reverse mortage cost in the beginning if any ????
an cant understand the irs taxes after one is dead

Hi Rose!

Welcome to the Forums!

Taking out a reverse mortgage will have an effect on your taxes or your eligibility for federal assistance. The IRS will not consider loan advances to be income, however if the money received through the advance remains in your account past the end of the month, it is counted as a liquid asset for Medicaid and SSI.

If your total liquid assets are greater than the allowable limits, you may lose your eligibility for these and other government programs.

I don't think that IRS can charge taxes after one is dead.

Feel free to ask if you have further queries.

Sussane

My neighbors husband is dying, he is 80. They have a reverse mortgage but my neighbor just found out that her husband has borrowed a lot of money that she didn't know about. They he dies she will not be able to pay all the bills on her income and she doesn't know if there are more. She only has a third grade education and can't even write a check. How can I help her.

Hi sunshine!

Your neighbor should ask her husband if there are any more debts that he had incurred or not. Secondly, if there are any credit card debts, then your neighbor can try for a debt consolidation or a debt settlement. Debt consolidation loans can help her in paying the medical bills, credit card bills as well as certain other loans. A debt settlement will reduce the debts by 40%-60% of the total amount.

Moreover, you have also mentioned about reverse mortgage. Your neighbor can also pay some of her debts with the help of the reverse mortgage.

Thanks

my mom did a reverse mortage in oct 2008, do she have to do any file this when she files her federal income taxes for 2008. She just retired in nov 2008. do she state that she sold her residence or not.

Hi,

To Curious,

As far as I know, one would not qualify for a reverse mortgage if there is a lien on the property.

To sandra,

If she has sold her property, then I think she will have to report this while filing income taxes. If she hasn't, then there is no need to report it while filing taxes.

Thanks.