Posted on: 08th Dec, 2010 09:35 am
my parents have maxed out reversed mortgage. can my brother who lives with them take out a second mortgage against the house?
Welcome budh,
As there is a reverse mortgage on the property, it means that the property does not have any equity in it. In such a situation, your brother won't be able to get a second mortgage on the same property.
As there is a reverse mortgage on the property, it means that the property does not have any equity in it. In such a situation, your brother won't be able to get a second mortgage on the same property.
but the bank is only gave them 71% of the equity?
Hi budh!
Welcome to forums!
You need to contact your lender and clarify the whole matter. He will be able to guide you in a better manner in this regard.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You need to contact your lender and clarify the whole matter. He will be able to guide you in a better manner in this regard.
Feel free to ask if you've further queries.
Sussane
71% now... the retained equity is their tradeoff for no mortgage payments. No 2nd mortgages behind a reverse 1st mortgage.