Reverse Mortgages and Property Taxes [mortgage-assumption.blogspot.com]
Vera Gibbons spoke with Julie Chen about when is a good time for a reverse mortgage and what to look out for.
mortgage-assumption.blogspot.com Reverse Mortgage Tips
I was just reading another article that was using the fact that if you get a reverse mortgage and then don't pay your property taxes then you could lose your home. Really, well I am not old enough yet to get a reverse mortgage so I happen to have a regular forward mortgage and guess what, if I don't pay my property taxes I will lose my house also. If you are lucky enough to be like my neighbor and have your home paid off but you don't pay your property taxes then you will also lose your home.
I find it interesting that these big News Companies let their writers get away with such poor facts in their stories. While yes it is true if you have a reverse mortgage and don't pay your property taxes the government can take your home, but that is nothing different or unique about a reverse mortgage, that is the country we live in.
I wonder if these great Reporters realize how many people they have caused to lose their homes because they scared seniors out of doing a reverse mortgage a year or two ago and now the senior is trapped in a regular mortgage that they can no longer afford to make the payments on.
We see this every day, in fact we have a senior in Pennsylvania right now that told us they were going to do this two years ago but all the negative press convinced them to wait, well now their home has come down in price and margins have gone up because of the bad economy and for them to do the reverse mortgage they have to come up with around $ 60,000 to close out their old mortgage.This type of situation is a common one for us to see in the industry and it is painful to see these older folks that we could have helped if they had taken action a year or two ago.
We had one client wait just a few weeks because some family member wanted to think about it and it caused the borrower to get about $ 15,000 less because interest rates went up.For all of you want-to-be do-gooders, shut up if you don't know what you are talking about! Learn the facts before you write your next article and if it is a family member just ask yourself two questions, first do you really know the persons financial situation that you are giving advice too? Second, if you were in their shoes what would you do?
The reverse mortgage is just another financial tool, nothing more or less. It is not evil and the people that offer it are not scam artists, how many seniors did you help this year save their homes? I have helped over 200 older folks stay out of foreclosure this year and live better lives.
More Reverse Mortgages and Property Taxes IssuesQuestion by Chad C: Reverse Mortgage? Just because you are over 65 and you have equity in your home, is a reverse mortgage better than a normal mortgage? What are the benefits to doing a reverse mortgage? Does the bank actually own the home if you do decide to go with a reverse mortgage? So you only receive up to 65% of the value of the equity in your home as of the time that you sign for the rev. mortgage? If you live fifteen more years and your home appreciates another 500,000 what happens to that equity? Best answer for Reverse Mortgage?:
Answer by CreditAlignment.com
i would speak to the heirs about this. reverse mortgage PAYS YOU EVERY single month for the rest of your life. you get to live in the home and not have to worry about making a mortgage payment. they take the equity of your house...and pay you your heirs can buy back the home after you pass away. on a regular mortgage YOU have to pay the mortgage..
Answer by valstpatrick
Chad, A reverse mortgage works well for borrowers with little assets and little monthly income. (cash poor, house rich) What a reverse mortgage does is LIQUIDATE a portion of your equity to you NOW (either monthly until you pass away OR a one time lump sum) The fees to do such a mortgage are rather high compared to other mortgage products. But it is a ONE time fee. It is a HUD product so all the lending criteria is the same with all lenders that have the ability to originate such a product. Here are the CONS for doing a reverse mortgage. The younger you are the LESS equity the loan will provide (because using mortality tables - you should live at least another 25-30 years) SO, the lender needs to pay you today, NOT Get paid back ONE cent until 30 years from now. Your area, value of the home, what you owe if anything , and your age (not your health) are used to calculate what percentage they will provide. The closer you are to 62 - you will get about 40% of the equity, if you are 85, you can expect to get about 65%) If you are married (both individuals need to be 62 or older) the reverse mortgage does not mature until the last spouse passes away or moves out of the home (whichever comes first). Speak to a mortgage SPECIALIST that sells this product. Not every mortgage professional has this product. Hope this helps and good luck
Answer by joveesasha
Its at 62 you can do so. Its better because you can invest at paying taxes only when you withdraw
