Posted on: 13th Mar, 2011 06:48 am
My mother age 80, is in her home with a reverse mortage.
My father has passed away.
The house (in North Carolina) was in both their names.
They did not cash out anything with the loan but had to PAY $3000 to qualify as they had a loan against it due to his long illness!
Sad as the house had been paid for long ago.
I was told REPEATEDLY by the representative that I should "BE CERTAIN TO" obtain a living trust in my name, so it did not have to go through probate at the time of sale.
I read that "living trusts are a nightmare" and unnecessary".
Do I need a living trust and if I obtain one, am I obligated to anything ?
The house will never sell for the amount owed.
In additon I am told that as we obtained the insurance......there is no concern at all with regard to the amount for which the house sells.
I offered them the worse case scenario.....
The house goes into foreclosure.....$100,000 is owed and it only sells for $25,000.
They say....."it does not matter. That is why you decided upon the insurance."
Is this true?
There is no ceiling ....that insurance covers all additonal amount owed?
Is nothing at all owed no matter what what the final sale price?
Am I obligated to anything at all, should the house be in my name in a living trust?
Thank you!
My father has passed away.
The house (in North Carolina) was in both their names.
They did not cash out anything with the loan but had to PAY $3000 to qualify as they had a loan against it due to his long illness!
Sad as the house had been paid for long ago.
I was told REPEATEDLY by the representative that I should "BE CERTAIN TO" obtain a living trust in my name, so it did not have to go through probate at the time of sale.
I read that "living trusts are a nightmare" and unnecessary".
Do I need a living trust and if I obtain one, am I obligated to anything ?
The house will never sell for the amount owed.
In additon I am told that as we obtained the insurance......there is no concern at all with regard to the amount for which the house sells.
I offered them the worse case scenario.....
The house goes into foreclosure.....$100,000 is owed and it only sells for $25,000.
They say....."it does not matter. That is why you decided upon the insurance."
Is this true?
There is no ceiling ....that insurance covers all additonal amount owed?
Is nothing at all owed no matter what what the final sale price?
Am I obligated to anything at all, should the house be in my name in a living trust?
Thank you!
welcome elvisstreet,
if there is a reverse mortgage on the property, then you won't be able to add your name to it unless you are 62 years of age. however, after your mother's death, you can refinance the mortgage and assume the loan. you will have to pay off the loan in order to save the property. if the property goes into foreclosure now, you won't be liable for paying the balance dues.
if there is a reverse mortgage on the property, then you won't be able to add your name to it unless you are 62 years of age. however, after your mother's death, you can refinance the mortgage and assume the loan. you will have to pay off the loan in order to save the property. if the property goes into foreclosure now, you won't be liable for paying the balance dues.
>>They say....."it does not matter. That is why you decided upon the insurance." Is this true?
Yes.
>>Am I obligated to anything at all, should the house be in my name in a living trust?
You have no obligations to the Reverse Mortgage. A Living Trust is nice in that it enables you to avoid Probate. But if your sole purpose is to get it so Title can be transferred to you upon your Mother's Passing, and the house will be worth way less then the amount owed on it, why bother? But what if Mom lives to be 90 or 100, and the housing market has turned around and the house is worth more then the amount owed? Then it'd be wise to get a Living Trust.
Yes.
>>Am I obligated to anything at all, should the house be in my name in a living trust?
You have no obligations to the Reverse Mortgage. A Living Trust is nice in that it enables you to avoid Probate. But if your sole purpose is to get it so Title can be transferred to you upon your Mother's Passing, and the house will be worth way less then the amount owed on it, why bother? But what if Mom lives to be 90 or 100, and the housing market has turned around and the house is worth more then the amount owed? Then it'd be wise to get a Living Trust.
