Comments on: Reverse Mortgage For Purchase Coming Soon

By: hald2

hald2 — Sat, 22 Aug 2009 14:48:51 +0000

My wife has a reverse mortgage on her home prior to our marriage. The bank says to put my name on the loan we would have to refinance and would have to come with $15,000. Is there any lendors or banks that buy active reverse mortgages so I can get my name on the loan without huge outlay of cash?

By: It's a Wonderful Life

It's a Wonderful Life — Sun, 14 Dec 2008 19:16:30 +0000

I don’t understand Texas’s Cowboys statement concerning declining values, if the property’s value is expected to decline then why would you not want to do the deal now ?

Not only do you lock in a higher value but you also start the clock on the automatic 4 % increase in the line amount which will most likely beat any possible increased appreciation for the next few years.

By: Bob Libby

Bob Libby — Fri, 12 Dec 2008 20:06:20 +0000

I would like to make one correction to Mr.Kelly’s article. It is not neccesary to to sell one’s home before using the HECM to purchase a new home. The buyer has 60 days from closing to occupy the new residence. I see this as a way for people to buy a home they like before they sell their prior residence.

By: Vincent Navarro

Vincent Navarro — Fri, 12 Dec 2008 15:51:09 +0000

While it is true that abuses will happen in ANY form of lending, it’s important to note that with the oversight of federally approved counselors and ridgid oversight by HUD of approved lenders the senior enjoys a few layers of protection.As history has shown time and again, money is never made on the sale but when the purchase is made. It would be senseless for the senior emerging from a “white elephant” of a bigger home to be denied the benefits of the reverse program because they want to purchase a smaller more managable home. And to be frozen by fear or ignorance do to a “sky is falling” mentality is even more foolish.

By: James E. Veale, CPA, MBT

James E. Veale, CPA, MBT — Fri, 12 Dec 2008 02:53:57 +0000

Many others have said it before but one help this becomes is an elimination of some of the duplicated closing costs by having one combined transaction versus two (purchase then refinance).

To date, there appears to be no one who has addressed the need for contingencies on the purchase escrow for obtaining a HECM (particularly a fixed HECM) at specified terms. If the rate goes up and all funds were needed in the transaction, well, you get the idea.

By: TexasCowboy

TexasCowboy — Thu, 11 Dec 2008 23:11:12 +0000

I truly hope Seniors fully investigate the reverse mortgage option. While it is very beneficial to some, it may also not be for others. My fear, especially given the unscrupulous acts of mortgage companies, is that Seniors are not drawn in on false pretenses.
Also, with declining home values, Seniors should be aware this may not be the best time to engage in a reverse mortgage.
Nice article!