For All Your Real Estate Needs!
Navigation Menu+

What is a Reverse Mortgage? What are the Pros & Cons? (Part II)

Posted on Sep 13, 2010 by in Active Rain | 0 comments

What is a Reverse Mortgage? What are the Pros & Cons? (Part II)

As I mentioned in Part I here I will address some of the pitfalls.

The Reverse Mortgage has some Borrower Requirements:

The borrower must be at the minimum 62 years old. The property must be either free and clear or have a small mortgage balance. There should not be any delinquent payments, or any federal tax lien on the home. The mortgage amount is based on current interest rate plus one or two per cent more and also the age of the youngest borrower.

The loan can be repaid in full when the borrower dies or sells the home. The loan becomes due if the property taxes or hazard insurance is not paid by the home owner.

In most cases the heirs do not keep the house due to the large financial obligations, so they end up selling the home.

 Most importantly if you want more information you can contact the US Department of Housing and Urban Development (HUD). This information is free. Do not fall for Reverse Mortgage scam artists who want to charge thousands of dollars for free information.

If you are a consumer  who is considering buying  or selling  a home, investment real estate, vacation homes, or beach properties in Southern California, Los Angeles, Century City, Westwood, West Hollywood, Beverly Hills, Culver City, Marina Del Rey, Venice or Malibu. Feel Free to give me a call at 310.486.1002 (USA) or email me at homes@endrebarath.com  or visit one of my websites at http://www.endrebarath.com  Your Pet Friendly Realtor. I contribute a portion of My commission to Local Animal Rescue Organizations

Submit a Comment

Your email address will not be published. Required fields are marked *