Forums » General Real Estate Investing » Re: Reverse Mortgage

Re: Reverse Mortgage 7 posts by 7 users

Paul C.

Real Estate Consultant
Chicago, IL

Posted: 05/09/2008 at 09:36PM

Can a relative of a deceased person who had a reverse mortgage sell the property? Is there something to look for in the contract language or is it pretty much a dead issue? No pun intended.....

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Jason C.

Real Estate Investor
Katy, Texas

501 posts

Posted: 05/11/2008 at 01:39PM

I am not a mortgage professional, but from what I know if someone with a reverse mortgage passes away, they give the option to the family to buy the house back before they take over the house themselves.

Daniel D.

Real Estate Investor
Whiting, IN

17 posts

Posted: 05/15/2008 at 10:25PM

I say definately talk with a real estate attorney and a probate attorney on this issue.

Best regards,

Daniel Durham

Charles W.

Real Estate Investor
Amarillo, Texas

93 posts

Posted: 05/18/2008 at 08:38PM

the executor of the decedent is responsible for the estate. If money is needed to pay liens or creditors then the house will probably be sold. The mortgage company or lending program that carries the rev. mortgage should be contacted to find out information for assuming the loan(if possible) or the ability to sell. Either way, contact an estate attorney.

John P.

3 posts

Posted: 05/21/2008 at 07:55PM

I wouldn't planning on off-ing any relatives any time soon till you talk to an attorney..

Jonathan R.

Silver Spring, Alabama

17 posts

Posted: 05/22/2008 at 02:27PM

Reverse Mortgages are like any other mortgage on a property. If the owner passes away, the asset becomes property of the estate. The person who is responsible for the estate will need to obtain new financing or sell the house to pay off the reverse mortgage. Most reverse mortgages are FHA mortgages so they are assumable but the person would be subject to the same requirements - namely being over the age of 62 and living in the residence for more than 6 months out of the year.

nationwidepi

Real Estate Investor
Santa Clarita, California

Author

1027 posts

Posted: 05/22/2008 at 03:16PM

Perfect answer jrundy!

I am of the opinion that reverse mortgages are banks " new" way to steal money and assets from the uninformed, particularly, the elderly. They charge massive amounts of fees and the homeowner has nothing left to pass down to their children/grandchildren/etc.
There may be some instances where a program such as this would be beneficial, but I feel, from an investor's standpoint, that it should be a last resort. Let's inform our parents/grandparents/elderly/etc. and offer them more viable choices. Granted, investing is not for everyone, but it is certainly a better choice financially to take equity from the home and invest in cash producing assets to generate the income needed. Then, when they pass, they have assets to hand down and do not run the risk of outliving their home equity and being placed in the streets by the lender who sold them the reverse mortage.