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My mom has a reverse mortgage on her home, currently she’s used about $ 160.000.00 of that equity.
House will sell for $ 230-$ 250 her area of she passes away.
My question is if I go back to live w/her (she’s ill & needs my care), and she passes away while I’m living there, the mortgage co said I have a year to pay back the $ she took out of the reverse mortgage or they will sell the house, then give me what’s left..
I have horrible credit & probably will not be able to get a loan to pay the money back that mom owes..
I would need to stay in the house because I won’t have any other place to live.
What are my options (to get money needed to save her house & so I can remain living there) w/bad credit??

8 Thoughts on Reverse mortgage & getting new loan?
  1. Reply
    February 7, 2014 at 6:11 am

    Get a co-signer with very good credit.

  2. Reply
    February 7, 2014 at 6:54 am

    Go to a different bank and ask them how much of a loan you could qualify for. If that’s $ 160K, you may have a chance.

    Otherwise, you can expect to move and rent a small apartment.

  3. Reply
    Silly Goose
    February 7, 2014 at 7:41 am

    When she passes, find an apartment. You do not want that house. It will become a nightmare because you cannot afford it.

    Right now, start saving and cleaning up your credit. You have time.
    Know that collection agencies will wait years to sue you and garnish your wages.

  4. Reply
    February 7, 2014 at 8:02 am

    Work on your credit now – the better your credit score the lower the interest rate.
    What is more important is INCOME. Get a job that you can move up quickly.
    Another option is the Military: room, transportation, food and medical included. There are a lot of benefits when you get out.
    I just recently learned that if you pick a field that few people choose, promotions are quicker! That means more money and benefits!!
    Do some homework. Good luck and best wishes.
    Remember This: Banks are business, they perform for a profit. Reverse Mortgages are Poop. Sounds good at first but wait, the back side is not pretty!!!!

  5. Reply
    Howard L
    February 7, 2014 at 8:30 am

    If you can afford to get and make payments on a $ 250K mortgage you won’t need to stay in the house. You could buy a nice house for much less than $ 250K or rent something for probably half of what it would cost to make payments on a $ 250K mortgage.

  6. Reply
    February 7, 2014 at 8:51 am

    A reverse mortgage favors the bank. Read every word of the agreement and ask an Attorney for help. Do not take advice from a place like this.

  7. Reply
    February 7, 2014 at 9:16 am

    You should sell, then use the cash from the sale to buy yourself something since you will not be able to obtain a mortgage without credit and income.

  8. Reply
    February 7, 2014 at 9:19 am

    You have rights and options according to HUD regulations and your state laws. You should explore and know what all options are right now while your mom is still with you. That was you make the best decision for her wellbeing and your ability to provide the care she needs now and consider your future.

    You do not automatically get a year to live at the property after your loved one has passed. The lender makes it difficult for you to exercise your rights. Some lenders will start foreclosure within 30 days of the borrower’s passing.

    Sandy Jolley
    Reverse Mortgage Suitability and Abuse Consultant

    If your mom has a trust it is easier if you are the successor or current trustee, if there is a will you will be forced to probate to be able to sell, purchase or elect any other option as the heir. If your mom passes intestate then you will still have to probate to be able to represent the estate. With the will and intestate it could be a long and costly process depending on your state. .

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