Reverse Mortgage Can Be Your Best Friend

The agency said it was concerned about the potential for older consumers to be victimized by bad advice or outright fraud.  ”As reverse mortgage loans become more available, licensees may not be fully cognizant of the propriety of, and the necessary business practices required to limit risks to consumers in this Commonwealth who use, reverse mortgages.”

Still The Owner

During the loan and the remainder of its life, you cannot be asked to leave the property, as you still are the owner and deed holder. This is the case whether you outlast the performance of the loan or not. As far as your heirs go, they are still entitled to the property upon your passing. The estate will be settled in the normal way, the property will be passed on to the heirs, and they can refinance out of the reverse mortgage. If they decide not to reside in the property, they can sell the unit, pay off the reverse mortgage, and keep the balance of the monies of the estate. They have one year, from the passing of the note holders, to settle the mortgage.

Retired People Can Benefit From A Reverse Mortgage

Retired people can benefit from reverse mortgage, as they typically need additional cash flow for their living, especially if they do not have a regular means of income. One should be at least 62 years of age to access and benefit from it. It allows one to live in one’s home and postponing the monthly loan payment until the owner moves, dies or the property is sold. Once the house is sold, the amount owed is deducted from the selling price, before being paid to the estate.

FHA

The higher hurdles for FHA loans, used in about a fifth of U.S. home purchases, add to challenges for a housing market already struggling with record-low sales and surging foreclosures. While lax lending fueled the bust that led the U.S. into recession, the new requirements will stifle the real estate recovery needed to revive the economy, said Ron Phipps, president of the National Association of Realtors.

SOURCE | REVERSE MORTGAGE SOLUTION (EXPLAINREVERSE.COM)