Posted on: 17th Jan, 2005 02:02 am
Before you select a reverse mortgage, you should think again for your heirs. They need to be informed of the details of this deal. This is because, in reverse mortgage you keep getting a certain amount and you never pay back anything. Thus the home equity keeps decreasing. Yet the debt can never exceed the value of the house. The lender will always get the lion's share leaving barely anything for the heirs. The options for the heir after the debtor dies are:
- Repay the loan balance and regain the house.
- Sell off the house and pay off the loan with the proceeds. Keep the rest if any.
- Refinance the mortgage by some other package, which allows repayment.
how do the heirs proceed when no will was left by parents. There are four heirs; three agreed to sign a quick claim to relinquish ownership. In the state of ill is it still necessary to put the estate in probate? there are no other assets.
The reverse mortgage needs to be paid off if the home is sold and then the remaining equity is yours or if you want to keep the home you can refinance the mortgage and the home and mortgage will be in your name. Hope this helps.
Is it customary for the mortgagor to offer a life insurance policy at the time of reverse mortgage?
Hi Rod Jengs
As far as I know, to get a reverse mortgage you do not need to have a life insurance policy.
Thanks
As far as I know, to get a reverse mortgage you do not need to have a life insurance policy.
Thanks
How long do I, the heir, have to notify mortage granter of death of mortage owner
Hi Elsie,
You should immediately notify the death of the reverse mortgage borrower to the lender. Once you inform the lender, you need to refinance the mortgage in your name and pay off the reverse mortgage.
Thanks
You should immediately notify the death of the reverse mortgage borrower to the lender. Once you inform the lender, you need to refinance the mortgage in your name and pay off the reverse mortgage.
Thanks
If the heirs are unable to repay the mortgage thru refinance or sale of the property how long before foreclosure starts and is there any other recourse the heirs can take if they have kept the property tax, insurance and upkeep of the property?
Hi Sheila
I don't think there is much that the heirs can do to stop foreclosure if they cannot refinance or pay off the mortgage dues. The lender has the right to foreclose the property.
Thanks.
I don't think there is much that the heirs can do to stop foreclosure if they cannot refinance or pay off the mortgage dues. The lender has the right to foreclose the property.
Thanks.
can the lender give more than one year to refinace the mortage on a reseverse mortage to the heirs if they need more time
on a reverse mortage can the house be refinanced even w poor credit if the house is worth more than the loan
Hi sharon,
It would be the lender's discretion whether he would offer you more than a years time to refinance a reverse mortgage. If you are facing difficulty in refinancing the mortgage, speak to the lender and try to resolve the issue.
It would be the lender's discretion whether he would offer you more than a years time to refinance a reverse mortgage. If you are facing difficulty in refinancing the mortgage, speak to the lender and try to resolve the issue.
linda, credit is not a variable that is considered with reverse mortgage loans.
Keep in mind that before the bank will even deal with you, in the event of the death of the homeowner, that you must provide them with a copy of the Will or Living Trust. Even if you pay off the loan, the home remains in the home of the deceased unless you can show that you are an heir. The bank will gleadly take your money, but will not release the dead. Therefore, there will be a paid off home, in the name of the deceased. You cannot refinance or anything else.
only Jesus can release the dead.
now on to business here...i have a tad bit of experience in dealing with someone who was the heir in a case like this. my (potential) borrower was working with the lender who had granted the reverse mortgage to her mom, who had passed. she advised me that they had given her 12 months to pay off the mortgage. obviously, that meant she could obtain a new mortgage of her own, once finished with the affairs of the estate, or sell the home.
based on that, i would like to say that most lenders are going to be reasonable in dealing with the heirs of an estate in a case like this. it doesn't make sense for them not to be decent about it. there's not much an heir can do rapidly, unless there's plentiful funds available.
now on to business here...i have a tad bit of experience in dealing with someone who was the heir in a case like this. my (potential) borrower was working with the lender who had granted the reverse mortgage to her mom, who had passed. she advised me that they had given her 12 months to pay off the mortgage. obviously, that meant she could obtain a new mortgage of her own, once finished with the affairs of the estate, or sell the home.
based on that, i would like to say that most lenders are going to be reasonable in dealing with the heirs of an estate in a case like this. it doesn't make sense for them not to be decent about it. there's not much an heir can do rapidly, unless there's plentiful funds available.
if u inherit a home which is paidin full an u obtains a reverse mortgage what kind of taxes have to be paid when u receive a lump sum?