What is a Reverse Mortgage? What are the Pros & Cons? (Part II)
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 https://www.endrebarath.com Your Pet Friendly Realtor. I contribute a portion of My commission to Local Animal Rescue Organizations
