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.
It is also important to know that.Reverse Mortgages allow you to set up the loan to protect a certain dollar amount of equity or a certain percentage of equity.
Hi cathy,
I guess your name is not mentioned on the property or on the reverse mortgage. In that case, you should let the reverse mortgage lender take away the property in order to recover his dues. It won't affect your credit in any way.
I guess your name is not mentioned on the property or on the reverse mortgage. In that case, you should let the reverse mortgage lender take away the property in order to recover his dues. It won't affect your credit in any way.
Cathy Jo, I believe that Adonis was addressing you also. If you can't sell the home and you can't qualify to purchase it, then the lender will undoubtedly seek to foreclose and take the property back, as Adonis mentioned.
If you do wish to stay there, you can certainly do so until such time as the lender actually takes an action. You didn't mention your intent or desire as far as staying was concerned.
If you do wish to stay there, you can certainly do so until such time as the lender actually takes an action. You didn't mention your intent or desire as far as staying was concerned.
Are heirs responsible for revers mortgages that exceed the properties value at the time of their parents death?
Heirs ought not to be responsible for deficits of that sort. Check with your attorney to be absolutely certain, though.
my dad has a reverse mortgage on his home, and has for 5-6 years.house was appraised at 246k.after the market crash,house value dropped to 100k.my dad passed allmost 6 months ago.cant sell it,because he owes 130k.ny brother has a quick claim deed,but dosent know if he should file it.i would like to know if we can rent it untill they take it,and HOW long before they will forclose.How long does this process take?my brother and i both own homes and have mortgage payments we cant afford to do anything,that requires money.
Hi terry,
If the dues are not paid off on time, the lender will foreclose the property immediately. The foreclosure process will take around 90 days to complete.
Thanks
If the dues are not paid off on time, the lender will foreclose the property immediately. The foreclosure process will take around 90 days to complete.
Thanks
You're right George.
Life insurance is indeed a great option to remedy the heir issue on reverse mortgage. The proceeds can pay off the reverse mortgage balance and the heirs will be able to keep the house as well as receive larger death benefits.
If I as, an heir, want no part of the reverse mortgage or want anything to do with dwelling or property after the homeowner is deceased.
What precautionary measures can I take now to avoid any part in it?
Does the heir need to disinherit him/her self to not be involved or what needs to be done?
What precautionary measures can I take now to avoid any part in it?
Does the heir need to disinherit him/her self to not be involved or what needs to be done?
Hi bobobby,
You can ask the present owner of the property to not include you name as an heir in his/her will. Thus, you won't be liable for the property or the mortgage after the owner's death.
Thanks
You can ask the present owner of the property to not include you name as an heir in his/her will. Thus, you won't be liable for the property or the mortgage after the owner's death.
Thanks
>>Does the heir need to disinherit him/her self to not be involved or what needs to be done?
Heirs aren't responsible for paying the Reverse Mortgage back, so you can tell the Lender you're not interested in the house and they'll foreclose, and you won't be impacted. However, that isn't a wise decision if there's equity left in the property. In that instance you should sell it, pay back the Reverse Mortgage Lender, and keep the retained equity.
Heirs aren't responsible for paying the Reverse Mortgage back, so you can tell the Lender you're not interested in the house and they'll foreclose, and you won't be impacted. However, that isn't a wise decision if there's equity left in the property. In that instance you should sell it, pay back the Reverse Mortgage Lender, and keep the retained equity.
FATER IN LAW PASSED 11MONTHS AGO,REVERSE MORTGAGE,THE HOUSE IS NOT WORTH WHAT IS OWED,NO ONE WANTS IT,THE BANK KEEP GIVING US THE GO AROUND,TWO MANY FAMILY MEMBERS TO DO SHORT SALE THEY SAID.....HOW LONG MUST WE KEEP PAYING THE HEAT AND ELE AND WATER ? THANKS MARY
If the amount owed on the Reverse Mortgage is greater then the value of the house, the Estate can walk away from the property without any negative effects. Why do you want to do a short sale?
do we have to keep paying the bills ? or send the bills to the bank?