Reverse Mortgage Information

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Anaheim Reverse Mortgage Question - Spouse Too Young For A Reverse

My spouse is not 62 years old yet - can I get a reverse mortgage?

That is an important question.  Technically, if your spouse is willing to go off of title you could get a reverse mortgage, but it is rarely, if ever a good idea.

Why? The answer is simple.  When the borrower on a reverse mortgage no longer lives in the home due to death, illness or sale, the loan becomes due and payable.  As the elder spouse if you should die first, your partner would then have to figure out a way to payoff the loan.  How would he or she handle that obligation?  Would they have a large inheritance from you that would be enough to payoff the loan or would they be facing foreclosure and eviction. That’s the dilemna you could be placing them in if you chose to proceed as the sole borrower and asked them to deed their interest in the property to you.  I don’t think that is ever a good idea even if it means more money now - and I recommend you talk with a knowledgeable, expert financial advisor or attorney.  When a borrower is married, both spouses may be required to receive HECM Counseling even if one of them is currently not on title or planning to go off of title.Caution

It is always imperative that you understand the obligations and terms of any real estate loan that you wish to become obligated to.  Don’t be shy about asking hard questions and make sure you understand your responsibilities completely. Don't be rushed, and deal with a professional, ethical reverse mortgage professional.

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By Deborah Nance

NMLS#202003

Your Local Southern California Reverse Mortgage Professional

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Equal Housing Lender

iReverse Home Loans, LLC, NMLS#810502 originates reverse mortgages in Alabama, Alaska, Arizona (MB-0919584), California, Colorado, Connecticut, Florida, Illinois, Indiana, Iowa, Kansas, Louisiana, Maryland, Massachusetts, Minnesota, Mississippi, Missouri, Nevada, New Jersey, New Mexico, Ohio, Oregon (ML-5378), Pennsylvania, South Dakota, Tennessee, Texas, Utah, Vermont (1164-MB), Virginia, Washington and Wisconsin. 

Important Information: Reverse Mortgages are neither "endorsed" nor "approved" by the Federal Government. The FHA (Federal Housing Administration) provides certain insurance benefits for lenders and borrowers in connection with the lender’s HECM loans; the FHA does not make or originate loans. The owner(s) retain title to the property that is the subject of the reverse mortgage until the person sells or transfers the property and is therefore responsible for paying property taxes, insurance, maintenance and related taxes. Failing to pay these amounts or failure to maintain the condition of your property may cause the reverse mortgage loan to become due immediately. A reverse mortgage is a complex loan secured by your home. Whether such mortgage makes sense for you depends on your financial situation and needs. For these reasons, we strongly recommend that you consult with a qualified independent housing counselor, family members and other trusted advisers before making this decision. This website is not from HUD or FHA and was not approved by HUD or any government agency.

Comment balloon 8 commentsDeborah Nance • November 13 2011 05:54AM

Comments

Thank you for the great advice. I hope loan officers will explain this to borrowers .

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) over 6 years ago

Deborah,

Thanks, it's great to hear from a mortgage pro who actually says the RM is not ALWAYS the best choice!  I am sure that not all loan officers explain this to their clients, it's refreshing to see someone honest.

Posted by Bill Dean, William Dean - Broker, Salesperson (Haggerty Team St. Louis, Mo.) over 6 years ago

Great advice - something I never knew, but makes perfect sense.  Thank you for sharing this valulable information.

Posted by Joy Daniels (Joy Daniels Real Estate Group, Ltd.) over 6 years ago

This is good stuff and now it takes its place on the Internet where it is available to those who need to know

Posted by Richie Alan Naggar, agent & author (people first...then business Ran Right Realty ) over 6 years ago

I'm not a fan of the reverse mortgage, at any age, so I'm unable to offer a proper opinion on this subject.

Good post, thanks for sharing it.

Posted by Anthony Daniels, SF Bay Area REO Specialist (Coldwell Banker) over 6 years ago

Good point on the reverse mortgage. I didn't know there was this workaround it and as you say one should really ponder it.

Posted by Sandy Acevedo, RE/MAX Masters, Inland Empire Homes for Sale (951-290-8588) over 6 years ago

Deborah, reverse mortgages sometimes sound too good to be true. Thanks for explaining that they may not be for everyone.

Posted by Michael Setunsky, Your Commercial Real Estate Link to Northern VA over 6 years ago

Thanks for all the feedback on my post.  I really appriceiate it - one thing I've learned over the years is that each situation is different and what may work for some, will not and should not be used for others.  

Posted by Deborah Nance, Southern California , Reverse Mortgage Specialist (Orange County, Corona, Riverside, Los Angeles) over 6 years ago

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