Posted on: 26th Mar, 2004 03:54 am
Reverse mortgages are payable only when the last surviving borrower dies, sells the property, permanently moves out or when he reaches the end of the loan period. A permanent move is implied when you, the co-borrower, or a qualifying relative has occupied the home for at least 1 year. If you die, the lender will not be able to take the title if your heirs can repay the loan.
When the loan may be in default
The loan will be in default if:
- You or the co-borrower have filed bankruptcy.
- The borrower donates or abandons the home
- You haven't paid property taxes
- You haven't maintained your home or paid for repairs
- Your home is no longer insured
- A co-owner has been added to the property title
- You have rented out the property to a non-relative
- You have taken a new loan on your home
- You have changed the property's zoning classification
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Hi heaven!
Welcome to forums!
The reverse mortgage lender may call the loan due immediately if he comes to know that you've rented the property. If you've taken out a reverse mortgage, then you should reside in that property.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
The reverse mortgage lender may call the loan due immediately if he comes to know that you've rented the property. If you've taken out a reverse mortgage, then you should reside in that property.
Feel free to ask if you've further queries.
Sussane
Can you rent to a relative if you do a reverse mortage?
Hi heaven,
Your query has been replied above by Sussane. Take a look at it.
Your query has been replied above by Sussane. Take a look at it.
My mother just passed ,I'm 64 and have lived with her many years.She took out a reverse mortgage this year at 92. she had a will, and left every thing to me. omiting my brothers (by name). She left me a beneficiary deed to the house. I was also left her bank account POD. She had me as her POA @POA heath diretive. Will I be able to keep the house? (I took out bankrupcy about 3 yrs ago) My daughter 29 is leaving for some college classes this fall. I need time to go (50yrs) accumulation here to get in order or sell . I also am legally disabled with RA ,and 5 bad discs. What are my options?
>>What are my options?
The home is and has been your primary residence, and you're 64, so you qualify to refinance the existing Reverse Mortgage with a new Reverse Mortgage. Tell the company that's servicing the loan you want to exercise that option - their phone number is toll free and listed on the monthly mortgage statement. You may have to contribute some cash, depending upon how your Mother received her cash (lump sum verses Credit Line or Monthly Payment options).
The home is and has been your primary residence, and you're 64, so you qualify to refinance the existing Reverse Mortgage with a new Reverse Mortgage. Tell the company that's servicing the loan you want to exercise that option - their phone number is toll free and listed on the monthly mortgage statement. You may have to contribute some cash, depending upon how your Mother received her cash (lump sum verses Credit Line or Monthly Payment options).
>>Can you rent to a relative if you do a reverse mortage?
You can rent a bedroom to them, but not the whole house. The home must be your primary residence, and you need to occupy it at least 183 days per year.
You can rent a bedroom to them, but not the whole house. The home must be your primary residence, and you need to occupy it at least 183 days per year.
My Mother in law has a reverse mortgage and as of now , it's JUST under $300K . The market value now is about $425K . for the last 16 years , her daughter , husband and 4 kids have lived there . There are 2 other adult children living on their own . The family there now , has no employement record ( meeger jobs at close to minimum wage) have no recieps for rent , utilities etc took $30K from the original rev mort to pay off credit card debt and expect to continue to live there after Mom passes . The other 2 heirs have NO desire to take on any more debt . With very poor credit rating ( Bamkruptcy , unreported income of that $30K , credit counseling , no work history , VERY low income , WHAT course is the porbable of action the lender would follow ?
>>WHAT course is the porbable of action the lender would follow ?
Whoever receives Title to the house when the last person on Title no longer occupies the home as their primary residence (this usually happens when they die), will have 30 days to repay the Reverse Mortgage Lender, when the mortgage is due. But in reality, the Lender usually gives them 12 months, if they're earnestly working towards satisfying the note. If they're not able to pay it off, the Lender will foreclosure on the property. Any equity left over after the foreclosure will go to the heirs.
Whoever receives Title to the house when the last person on Title no longer occupies the home as their primary residence (this usually happens when they die), will have 30 days to repay the Reverse Mortgage Lender, when the mortgage is due. But in reality, the Lender usually gives them 12 months, if they're earnestly working towards satisfying the note. If they're not able to pay it off, the Lender will foreclosure on the property. Any equity left over after the foreclosure will go to the heirs.
My grandmother took out a reverse mortgage about a year and a half ago. She died recently and left her house to my mother and her two siblings. The RM owed is about $70,000. I am willing to pay off the RM (with an equity loan from my own home) and have the three co-owners quitclaim the property to me (which is also agreeable to them). What is the best way for me to pay off the mortgage (directly to the bank or $$ to my aunt, the executor) and to transfer this property/title to me. Is a quitclaim the best way? (My grandfather built the house and there is no question on the property title.) They are expecting no compensation beyond paying off the RM.
Au contraire, James...
the lender won't allow for a refinance of that mortgage, as they'll want payment in full. Heirs to the property will be given a specified period of time to eliminate the debt, anywhere from 30 days on up. Given what we've read here about the availability of the funds, etc. I see no reason why Sam B. can't work it either way - either paying the loan directly from his own funds, or by transferring the funds to the heirs, who then in turn pay in full the mortgage.
It'd be a benefit, Sam, to engage legal counsel to guide you through this process, I believe.
the lender won't allow for a refinance of that mortgage, as they'll want payment in full. Heirs to the property will be given a specified period of time to eliminate the debt, anywhere from 30 days on up. Given what we've read here about the availability of the funds, etc. I see no reason why Sam B. can't work it either way - either paying the loan directly from his own funds, or by transferring the funds to the heirs, who then in turn pay in full the mortgage.
It'd be a benefit, Sam, to engage legal counsel to guide you through this process, I believe.
My mother took out a reverse mortgage in Dec.2010.She died June30,2011,at 92. I lived with her for 40 years ,and raised my children at her home. They are grown. I took care of her till she passed. She left all her assets to me, including the house with a beneficary deed. I am 64. Can I keep the home with a traditional Forward Mortgage,or refinance the Reverse Mortgage with another Reverse Mortgage? I filed bankruptcy 3yrs ago,what are my options,are they more than sell the house or give it to the mortgage co. They are on my back,and my mother just died. I recieve regular social sec . but I am disabild with RA ,so it will be hard to leave fast with 50yrs accumeulation,her's and mine. What can I do? Thanks for your help. :)
Hi Guest!
Welcome to forums!
As you're 64 years of age, you can take out another reverse mortgage and pay off the existing one. It is not mandatory for you take out a forward mortgage. As you had filed bankruptcy 3 years back, I don't think you will face problems in getting a reverse mortgage now.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
As you're 64 years of age, you can take out another reverse mortgage and pay off the existing one. It is not mandatory for you take out a forward mortgage. As you had filed bankruptcy 3 years back, I don't think you will face problems in getting a reverse mortgage now.
Feel free to ask if you've further queries.
Sussane
Unquestionably, Guest, you ought to look into a reverse mortgage of your own to pay off the existing one your Mom had.