Questions About Reverse Mortgage

1. What happens if I default on a reverse mortgage?

   Question - Hi,
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2. What are reverse mortgages?

   Question - A reverse mortgage is a financial tool for seniors over age 62 to tap the equity in their homes. Unlike a forward mortgage, no payments need to be made on a reverse mortgage until the owner no longer lives in the house.
   1 Expert Answer

3. Should I get a reverse mortgage or a bank loan for my elderly folks?

   Question - One difference between qualifying for a bank loan and a reverse mortgage is that borrowers must meet strict credit criteria when applying for a traditional loan. Credit history is not a criterion for a reverse mortgage. Most elderly people do not have sufficient credit scores to qualify for bank loans...
   1 Expert Answer, 2 Community Answers

4. Will a trust protect a house if there is a reverse mortgage?

   Question - You would have to have the trust reviewed to see if it qualifies for a reverse mortgage, not all of them do.
   1 Community Answer

5. My mom is 65 and did a reverse mortgage. Are her kids responsible in any way?

   Question - If your mother took out a reverse mortgage on a home that she owns in her own name, you and your siblings have no obligations.
   1 Expert Answer, 4 Community Answers

6. What are the risks with reverse mortgages?

   Question - The bottom line is there are very few risks with these kinds of loans, provided that you and your mother do your homework, find a trustworthy lender, and make sure she's the right candidate for a reverse mortgage.
   1 Expert Answer, 2 Community Answers

7. Can my mother do a reverse mortgage on our home?

   Question - I don’t know how this could happen.
   1 Expert Answer, 5 Community Answers

8. How do we buy a house back that had a reverse mortage?

   Question - You should start with the company that is servicing your grandmother's mortgage. This may or may not be the lender. She should have been receiving monthly statements from the servicing company. The servicing company collects a monthly fee that is charged back to the reverse mortgage...
   1 Expert Answer

9. Are funds taken out from a reverse mortgage subject to taxes?

   Question - Funds received from a reverse mortgage are not counted as taxable income. It is no different than taking funds from a home equity loan or line of credit. The funds are from the equity in the house, which you own. You are tapping your own asset. The reverse mortgage holder does not have to report or pay taxes on the cash taken out of a reverse mortgage...
   1 Expert Answer

10. Can I do a reverse mortgage on my mother's house?

    Question - When homeowners take out a reverse mortgage, they do not have to pay anything back as long as they live in the house. If they move out of the house or pass away, the balance including principal and interest becomes due. There is a 6 month grace period for the homeowners or their heirs to pay off the mortgage...
    1 Expert Answer

11. Is the interest on a reverse mortgage recalculated after the holder dies?

    Question - Reverse mortgage interest is not recalculated upon the death of the borrower. The interest rate on a reverse mortgage is determined by current market interest rates + the lender’s margin, or profit. It can be fixed or variable. A fixed rate never changes throughout the life of the lo...
    1 Expert Answer

12. How are homeowners insurance and property taxes paid with a...

    Question - How are homeowners insurance and property taxes paid with a reverse mortgage?

13. If you owe more in reverse mortgage than a house sells at market value, who gets paid first?

    Question - If you owe more than the house is worth, and go to sell the house at market value which is below the reverse mortgage balance due, with the proceeds from the sale, can you first payoff the closing costs and realty commissions before paying any proceeds to the bank?

14. Can you do a reverse mortgage on a plot of land?

    Question - Hello, and thank you for your question. Unfortunately, you cannot do a reverse mortgage on a piece of land that is undeveloped. There must be a residence on the property for a reverse mortgage to take place. In addition, the residence must be FHA approved. For example, bed & breakfasts and working farms are not reverse mortgage eligible properties...
    1 Expert Answer

15. What are jumbo reverse mortgages and how do they work?

    Question - When this first came up I talked with a financial planner and we all agreed that a reverse mortgage was a bad idea
    1 Community Answer

16. Can someone get a reverse mortgage if they are determined to have dementia soon after?

    Question - My 82 year-old mother took out a reverse mortgage on a house I was supposed to get on her death. My brother helped her, three months after she took it out she fell and broke her hip, was in hospital for six months and was declared to have 7th stage dementia. Was she capable to take out a reverse mortgage and give my brother $15,000 of it...

17. What are my options for getting rid of my house which is on a reverse mortgage?

    Question - I am 71 years old and have decided that I physically, nor financially am able to keep my home which has a reverse mortgage. The reverse mortgage total is already more than I can sell my home for due to the bad housing market. In addition, my house is 43 years old, and in good condition at the moment...

18. My mother has a reverse mortgage on her home, can she deed it to me?

    Question - My mother has a reverse mortgage on her home. Can she deed it to me? We want to get government assistance to be able to afford in-house care for her.

19. I do not own a home now, I want to purchase one can I with reverse mortgage?

    Question - I want to purchase a home. I do not own one currently. Can I purchase the home with reverse mortgage?

20. What happens to the house when there are kids? What are their financial obligations?

    Question - My sister took out a reverse mortgage because she needed income and the house was all she has. Her kids don't know about it and I know at least one of them is planning on getting the house when she dies. What will happen to it and what will be the money obligations to him?

21. Adult Protective Services is in and want us out. What to do?

    Question - I live here in the state of Washington and have been providing care, part time, for an 81 year old person. Someone visited him on Christmas Day to take him for Mass at church, and noticed he was confused. Yes, I knew he was sick again from a urinary tract infection and called on Christmas Day to let...

22. When does it make financial sense to get a reverse mortgage?

    Question - A reverse mortgage can be a big help to seniors who need to tap resources for unforeseen expenses. These include medical and long term care expenses, major household repairs or to supplement low income. For many seniors on fixed incomes, their house is their largest or only asset. It makes sense to use this resource as a last resort...
    1 Expert Answer

23. Do morgage companies take posession of a house you are no longer living in or just after you pass away?

    Question - My friend has a reverse morgage on her home which she obtained about four years ago. Since the morgage company now owns her home. She understands that when she dies the house goes to the morgage company but what if she moves out the home to live in assised living or nursing home...

24. Can my mother gift me money so she can apply for Medicaid?

    Question - I am putting in for help to pay cost 'Medicaid' in a assisted living home for my mom. She has about 5,000.00 in bank and i was told she could only have about 2,000. Could she give a gift of 3,000? before moving in to assisted living? why do medicaid also ask for bank statements for pass three years...

25. How can my mother pay the taxes on her home?

    Question - My mother took a reverse mortgage on her house a few years ago and spent all of the money. She is financially irresponsible and now has a lien on her house, because he didn't pay her property taxes and doesn't have the money to pay. What are her options? The mortgage company has sent her a letter and says she has 20 days to pay the taxes or else...

26. Will a reverse mortgage affect my Medicaid and Medicare benefits?

    Question - Hi Tannylynn. That's a great question. While a reverse mortgage will not effect your eligibility for medicare or social security, it can effect eligibility for need-based government assistance programs such as medicaid.
    1 Expert Answer, 2 Community Answers

27. Can I deed property to my daughter without selling it and have tenancy?

    Question - You can most likely give the home to your daughter, however, you should have a lawyer review your mortgage to make sure that there is not a provision that would require the mortgage to be paid off in full if you were to do so. You could also give it to her and have a written tenancy agreement that would...
    1 Expert Answer

28. Are reverse mortgages available if there is a tax lien?

    Question - When an application for a reverse mortgage is processed, the lender will immediately order a title search. Any tax liens will be uncovered by the title company and reported to the lender. The lender will then require that you pay off the tax lien with the proceeds from the reverse mortgage at the closing...
    1 Expert Answer, 1 Community Answer

29. How does a reverse mortgage affect the equity 5 to 10 years down the road?

    Question - To take out a reverse mortgage, all of the owners must agree to it. With the deed as it stands now, all 7 siblings and your mother would have to give permission. Plus, all borrowers need to be at least 62 to qualify for an FHA -insured HECM (Home Equity Conversion Mortgage). I doubt that all of your siblings would qualify...
    1 Expert Answer, 1 Community Answer

30. Who are the best long term care providers and reverse mortgage companies?

    Question - The best long term care insurance company for you is the one whose policy meets your needs. There are many highly rated carriers that offer long term care insurance, e.g. Genworth, John Hancock, Met Life, to name a few. While the financial strength of the company is important, the features and services offered are equally important...
    1 Expert Answer, 1 Community Answer

31. Does divorce trigger repayment of a reverse mortgage?

    Question - My home is in my name now. If i get a reverse mortgage and then get a divorce and my wife is awarded the home. Does that trigger repayment of the reverse mortgage?

32. Should my mother sell me her house now?

    Question - Thanks for your question. It is certainly an important one. Given that mortgage rates are currently extremely low and expected to rise in the future, it might be wise for your mother to sell you the home now, so you can refinance the reverse mortgage into a conventional mortgage.
    1 Expert Answer, 3 Community Answers

33. How can my sister stay in the house Mom had a reverse mortgage on after Mom dies?

    Question - The bank holding the reverse mortgage will want, and be legally entitled to, repayment of the money it is owed under that mortgage. Your sister needs to determine how much money is owed to the bank. Then the question becomes how she can pay that money to the bank. This would depend on:
    1 Expert Answer, 5 Community Answers

34. Can I make a property transfer as POA?

    Question - Reverse mortgages are rarely a good option if a homeowner is likely to enter a nursing home in the near future—or anytime within three years or so, so that may not be your best route.
    1 Expert Answer, 2 Community Answers

35. My mother has a reverse mortgage on her home. She had to...

    Question - My mother has a reverse mortgage on her home. She had to move to assisted living last year and we tried to sell the house, but it did not sell. We have had to rent the house to pay for her care. What do we do with the reverse mortgage? I called the bank and the person said, " Do not tell the bank she is not in the home...

36. Will a reverse mortgage continue to accrue interest even during probate?

    Question - You should discuss this with the reverse mortgage lender, as terms and conditions will vary. Generally, though, the interest on a reverse mortgage is due when the house is sold, so if there's a time delay between the death of your parent and the sale of the house, the estate is responsible for the increased...
    1 Expert Answer, 1 Community Answer

37. Is there temporary assistance for Mom's care in Illinois?

    Question - We no longer have funds to help care for my mom. How can I get some temporary assistance with her care?

38. Is there a reverse mortgage company out there that will pay interest on my money they hold for me?

    Question - All FHA insured reverse mortgages increase the availability on any money placed in a line of credit with the lender. Technically, this is not interest in the traditional sense but it works in much the same way. For example, if you had $50,000 in reverse mortgage proceeds in a line of credit (that you...
    1 Community Answer

39. How do we decide between a reverse mortgage for my father or a personal loan from me?

    Question - Loans between family members are always fraught with potential complications, and your case is no exception. There are a number of issues to consider, but they all boil down to one big issue: What would be the impact of this type of loan on you and your family?
    1 Expert Answer, 1 Community Answer