Make sure you are doing the right thing. You cannot change your mind without
a lot of expenses.
Pros and Cons, but you can find a ton of information about them online. Try some sales sites, but also try a government site or two:
Order the materials and CD that are free – offered online or in one of the commercials.
Any FHA lender can give you the details on a reverse mortgage. At least one of the owners has to be 62 or older. The amount you can get is based on your age. For example a person 68 can get about 70% of the appraised value of the home. You can get the money in a lump sum or take payments. However a reverse mortgage can be foreclosed for non payment of taxes or maintenance issues.
Reverse mortgages are rip-offs. If you can no longer afford the upkeep of your home, consider selling it and buy a small condo in a senior citizens' community.
A reverse mortgage is good or bad based on the financial condition or situation of the seniors. If the seniors are having financial difficulties, this might be a savior and cause less stress.
If they are in a good financial condition and have planned well for retirement there is no need for a reverse mortgage.
The primary requirement to obtain a reverse mortgage is that one or both of the seniors must be a minimum of 62 years of age.
A reverse mortgage is sort of expensive to obtain, so one of the first things you would want to do is find out the cost of your getting this reverse mortgage. You would also be required to get and pay for an FHA appraisal. All repairs to the house found by the appraiser will have to be repaired prior to the reverse mortgage being approved and closing.
You might also want to know the amount of funds that would actually land in the seniors hand. We do know one thing all mortgages would be paid off, as well as any other liens found on the property, plus the expense of the reverse mortgage, so on a good day the seniors would wind up with approximately the difference of the appraised value minus any mortgages paid off, any liens and the closing cost in their hands.
They can receive this in one lump sum or monthly payments spread out over a period of time.
They no longer would be required to pay a monthly mortgage, they could payoff any debts that are owed, with the remainder of the funds being placed in a bank account of their choice.
The other part to this reverse mortgage is that the seniors will be able to stay in the house as long as they both are alive.
Once they are no longer with us the heirs of the seniors would have to decide if they wanted to keep the house or not. If the heirs decide they want to keep the house then they would be required to pay off the mortgage company that gave the seniors the reverse mortgage plus interest with a new mortgage loan or cash.
If the heirs decide they did not want or could not afford the house then the bank would take legal action to secure the property, such as foreclosure.
A reverse mortgage is an FHA mortgage product, therefore you simply have to locate a local FHA approved lender in your telephone book. You might also Google reverse mortgage followed by the city in which you reside or where the property is located.
Before a reverse mortgage might be obtained the seniors would have to go through extensive FHA counseling concerning the reverse mortgage so they would understand exactly know the reverse mortgage work and the effect it would have on them either positively or negatively.
If there is substantial equity normally there are normally no problems with the reverse mortgage being approved.
I hope this has been of some benefit to you, good luck.
Johnny – don't you think you should be asking a mortgage advisor this question, NOT a selection of bored teens, trolls and other assorted being with nothing better to do on a Friday afternoon than waste time on YA ?