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.
Then do all heirs have to sign that papers to list the house on the market, or just the executor/executress?
Hi Julie!
Welcome to forums!
Your query has been answered in the given page:
http://www.mortgagefit.com/propertytransfer/about43727.html#182082
Take a look at it. Hope it helps you.
Sussane
Welcome to forums!
Your query has been answered in the given page:
http://www.mortgagefit.com/propertytransfer/about43727.html#182082
Take a look at it. Hope it helps you.
Sussane
I am very stressed out. My grandmother had a reverse mortgage. There is no way, shape or form that I can repay this loan. Selling it and after probate costs, attorney fees, upkeep of the home, taxes, insurance and utilities till it sells is far beyond my reach (I have much debt of my own) and as an end result would only end up with a few hundred dollars if that. I am so lost it's not funny.
I am going to let the house go. She had no other assets than the home. Is this the right choice?
I am going to let the house go. She had no other assets than the home. Is this the right choice?
Hi Liz,
If you don't want to keep the property, then you can let the lender foreclose the property. He will sell off the property and recover the dues. He won't come after you to recover the balance dues.
Thanks
If you don't want to keep the property, then you can let the lender foreclose the property. He will sell off the property and recover the dues. He won't come after you to recover the balance dues.
Thanks
That's true, Liz. If title is still vested in your grandmother's name, then there'll be no liability on your part as far as the property is concerned.
Thank you both for your answers.
I just received a condolence letter from the bank. They would like a 'letter of intent' sent to them as well as other documents.
My question is since I don't wish to have the house (buy it, sell it) and just give it back to the bank what should I included in this letter of intent?
Thank you for any help.
I just received a condolence letter from the bank. They would like a 'letter of intent' sent to them as well as other documents.
My question is since I don't wish to have the house (buy it, sell it) and just give it back to the bank what should I included in this letter of intent?
Thank you for any help.
Hi Liz,
If you don't wish to keep the home, then you should write the same in the letter. Alternatively, you can contact an attorney and he will help you in drafting the letter.
If you don't wish to keep the home, then you should write the same in the letter. Alternatively, you can contact an attorney and he will help you in drafting the letter.
I wouldn't waste my time in getting a lawyer to write you a letter to send to the bank. You'll pay for that privilege, also.
Just put down, in whatever you feel the best manner appropriate, what you wish to do. If you want to deed the home back to the lender, they probably won't be all that pleased, but at least you can let them know that so they can get started in trying to market it for sale. Simply tell them what you wish.
Just put down, in whatever you feel the best manner appropriate, what you wish to do. If you want to deed the home back to the lender, they probably won't be all that pleased, but at least you can let them know that so they can get started in trying to market it for sale. Simply tell them what you wish.
When my mother died a few months ago I found out that she had taken a reverse mortgage on her home. In researching mortgage recordings I discovered that the bank had not recorded the mortgage so it appears that there is not a mortgage on the property. Why would the bank not record the mortgage?
How do I know if the title is still vested in my grandmother's name? What if it's not?
When calling them I was told that they could not discuss with me how much is needed to be paid back. Is this because I am not on the title but she is?
Sorry for all the questions but your guys' help is appreciated.
When calling them I was told that they could not discuss with me how much is needed to be paid back. Is this because I am not on the title but she is?
Sorry for all the questions but your guys' help is appreciated.
To De De,
It is quite difficult to say why the bank has not recorded the mortgage. As the loan is not recorded, the lender will not be able to come after the property and sell it off to recover his dues. You can file an affidavit of heirship and transfer the property in your name. You will own the property free and clear.
To Liz,
You can contact the county recorder's office in order to find out the owner of the property. You can also contact a title search company in order to find out the name of the owner. The person whose name is mentioned on the property deed will be considered as the owner of the property.
The mortgage company may not speak to you if your name is not mentioned on the mortgage docs. If your grandmother is the borrower of the loan, then the lender will only have a word with her and won't deal with you.
It is quite difficult to say why the bank has not recorded the mortgage. As the loan is not recorded, the lender will not be able to come after the property and sell it off to recover his dues. You can file an affidavit of heirship and transfer the property in your name. You will own the property free and clear.
To Liz,
You can contact the county recorder's office in order to find out the owner of the property. You can also contact a title search company in order to find out the name of the owner. The person whose name is mentioned on the property deed will be considered as the owner of the property.
The mortgage company may not speak to you if your name is not mentioned on the mortgage docs. If your grandmother is the borrower of the loan, then the lender will only have a word with her and won't deal with you.
De De, be wary. If and when the lender discovers its folly in not recording that mortgage, you could find yourself battling with them. Not only that, if there was an error in your being told this, it could rear its ugly head when you do try and sell and they'd be screaming at you looking for their money back - which they ought to get anyway, when you come down to it. You might want to invest in a title search to get to the bottom of this.
Liz, what Niicss suggests about contacting the office where the deeds are filed is a good idea. A search by a title company, though more costly than free information, is also a good idea. The lender clearly won't speak to you because you are not a party to their mortgage. Privacy laws prevent them from speaking to you about the loan.
Liz, what Niicss suggests about contacting the office where the deeds are filed is a good idea. A search by a title company, though more costly than free information, is also a good idea. The lender clearly won't speak to you because you are not a party to their mortgage. Privacy laws prevent them from speaking to you about the loan.
Hi Yelena,
If the heir is not 62 years of age, then he or she cannot be included on the property deed while you plan to take out a reverse mortgage. You can draft a will and declare the heir as the beneficiary to the property. After your death, the heir will have to probate the property and get it transferred in his or her name and then refinance the reverse mortgage into a conventional one.
Take care.
If the heir is not 62 years of age, then he or she cannot be included on the property deed while you plan to take out a reverse mortgage. You can draft a will and declare the heir as the beneficiary to the property. After your death, the heir will have to probate the property and get it transferred in his or her name and then refinance the reverse mortgage into a conventional one.
Take care.
my mom passed in 2009 she took this kind of mort. i have trid to sell but it won't pass FHA inspesction. more is owed than it is worth .my year extention is up & my credit isn't that great.open for suggestion. thanks cathy jo