When to pay back reverse mortgages

Tell the company that's servicing your Mother's Reverse Mortgage, that you'd like to refinance it with a Reverse Mortgage of your own, and ask them to refer you to one of their Reverse Mortgage Specialists for that purpose.

If your Mother received her cash in the form of a Monthly Check or Credit Line, there's a good chance there's plenty of equity left in the property for you to be able to refinance it without having to contribute any cash. However, if she converted all her equity into cash when the loan funded, you'll probably have to contribute some cash in order for your Reverse Mortgage to happen. That's because she was 92 when she got hers, and the older you are, the more equity you're able to convert into cash.

If the company that's servicing your Mom's Reverse Mortgage no longer originates Reverse Mortgages, provide me with the most recent monthly statement, and I'll see how it'll work for you.

Thank you ,Mr. Denton for getting back to me. I am the lady that had the mother who was 92,and I'm 64. In Dec.2010, my mother converted all the equity into cash.The house was appraised then (8months ago)at 92,000.She got 60something thous. The loan due is 74,476.79. She died 8/30/11. I will tell them I want to refinance my own RM, but what do you think it will COST ME? How can I contact you to send a copy of the last statement,if you still need to see it? Thank you so much for your help!

I estimate your contribution would be $25,000.00 if you lived in Miami, Florida, or $23,300.00 if you lived in Irvine, California. Florida has extra taxes, thus the reason for the higher amount.

Thank you for your quick reply Mr. Denton .In reference to what I would need to contribute to get this RM.I live in missouri. Will they let me pay it in payments,25,000 is alot of money,it would take all I have and more.How long do you think they would give me to pay that off,if they will. I recieve reg. social security,but I'm disabled now with rhumitoid arthritis. Thanks for taking the time to help me, I need to know what I should do,and what would be the best decision for me. I've lived here 40yrs. Thank you, you have helped me alot!

Thank you for your quick reply Mr. Denton .In reference to what I would need to contribute to get this RM.I live in missouri. Will they let me pay it in payments,25,000 is alot of money,it would take all I have and more.How long do you think they would give me to pay that off,if they will. I recieve reg. social security,but I'm disabled now with rhumitoid arthritis. Thanks for taking the time to help me, I need to know what I should do,and what would be the best decision for me. I've lived here 40yrs. Thank you, you have helped me alot!

You can't make payments. You're going to get your own Reverse Mortgage on the property, and will have to contribute the entire shortfall when the loan funds. I wouldn't wait if I were you, because every month the amount you owe grows larger, and the amount you need to contribute increases. And that's if the home still appraises for 92k. You'll need to contribute more if it appraises for less. Lets hope it appraises for 92k or higher. The amount you'll need to contribute will be less if the home appraises for more then 92k.

So I pay the shortfall with the money they give me for the reverse mortgage I get on my own. Great! I'm not expecting much at 64,but at least I might get something after I pay them right? I won't have to take money out of my bank account right? Well, I'll get right on it tomorrow. Thanks soo much, Mr. Denton,you've been a great help to me!

No, that's not how it works. You'll need to take money out of your bank account and pay the Reverse Mortgage Lender in order for a Reverse Mortgage to work for you.

I suggest asking a Reverse Mortgage Loan Officer to visit with you, explain how it works, and provide you with a quote. At www.reversemortgage.org you can select the State you live in, and locate a local Reverse Mortgage Specialist.

Mr.Denton,after you said I would have to pay the difference out of my bank account ,this may not work for me. I hope that there is a way to work it out,I don't want to leave my home. I will contact her previous lender and have them explain it to me. Many thanks,you've been alot of help in trying help me understand what the facts are in my situation.

Wishing you success Izzy!

I don't know Raymond Denton from Adam, other than what I've seen on these forums. However, that doesn't prevent me from expressing my opinion that he's one of the more honorable of those who call themselves lending professionals.

Take a good look at the stream of information back and forth between him and Izzy concerning her Mom's reverse mortgage and what can be done. Not once did Raymond try to persuade her to do business with him by touting his integrity, knowledge, expertise, etc. He suggested resources Izzy could use to obtain more information, he provided data about the costs, out of pocket, that she'd have to come up with, and oh yes, one time mentioned that he'd probably be able to be of assistance IF she couldn't get help elsewhere.

Raymond and a bunch of others are among the very good reasons I keep coming back here to participate and also to learn. He's above-board with his commentary, and he knows whereof he speaks.

Raymond, don't go getting a big head now, but face facts - you're honest and professional in situations that honesty and professionalism generally get tossed out the window.

Salud! If I had a customer looking for information about reverse mortgages or a small medical miracle, I'd send that person to denton.org in a heartbeat!

Thank you, George. Personally, I've learned a lot from you and others, reading the responses on subjects I'm not familiar with. Reverse Mortgages are the subject I know best, so those are the posts I feel comfortable commenting on.

Is it possible for me to turn over the house to the lender a year before the end of the term of the loan? I have to move out of state due to my health and do not have the funds to pay off the lender.

Are you asking the question about a Reverse Mortgage? I ask that question because Reverse Mortgages on't have a term. If you are asking about a Reverse Mortgage, the answer is "yes", but you should try to sell it yourself first.

what is the penalties for renting us a house where the landlord has a reverse mortgage and is trying to hide it?