Posted on: 27th Jul, 2011 08:31 am
I am a realtor, and my clients mothers home was placed in a life estate to the one brother with covenant that upon the death of the mother the proceeds would be split evenly amongst the 4 siblings.
can the sibling that is named in the life estate take out a reverse mortgage while the grantor is still alive?
can the sibling that is named in the life estate take out a reverse mortgage while the grantor is still alive?
The life estate allows the grantee to encumber the property. The problem would be with title, if the hiers have a right to equity, that could pose a problem to the lender. I am not up to speed on reverse, so I would instruct you to contact a reverse lender and send them the prelim and go from there.
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>>can the sibling that is named in the life estate take out a reverse mortgage while the grantor is still alive?
Yes. Life Estates are compatible with the FHA insured Reverse Mortgage programs.
Yes. Life Estates are compatible with the FHA insured Reverse Mortgage programs.
