Currently aged 76 bankruptcy, but want to do a reverse mortgage, what are my options and how it affects my family after my death?
Read what the federal goverment has to say upon it, as it was they who made them out first of all.
Most of the time it depends on the company from where you are going to get the policy, there are lots of companies that are giving different facilities according to your job and your age, so it is better to check out some companies, i am also suggesting you a link that can be helpful for you, just check out the link in the source box.
While you are in bankruptcy, you need the bankruptcy trustee’s advance permission before incurring any new debt. This includes a reverse mortgage.
If you are in Ch 13, talk to your bankruptcy attorney who will help guide you through the process of obtaining the necessary permission from the trustee.
If you are in Ch 7 you may be better off just waiting until the bankruptcy case is closed before obtaining the reverse mortgage.
You realize, of course (right?), that with a reverse mortgage the lender – not your family – gets the house upon your death.
It’s where a company slowly buys your house from you. It’s basically like selling your house for what you paid for it. Some companies will even let you stay in the house for as long as you live. Once the person dies, the company owns the house.
Established by Congress, the program allows you to borrow money against your home without having to make any repayments on it for as long as you live in it. If you have no mortgage, it pays you monthly or provides a line of credit or both.
* Borrowers must be 62 years or older.
* No income requirements. Based solely on age and home’s value
* No out of pocket costs. All closing costs are included in the loan
* No Monthly payments. No payments as long as you live in the home. It is paid off after you sell it or both owners pass away. 100% remaining equity is paid to your heirs.
* Low initial interest rate of 6.00%-7.00% APR with a 10-year average under 6.5%
* Money from the loan is tax-free and can be used for any purpose.
* Funds can be takin in a lump sum, as a line of credit or paid monthly.
* Insured and regulated by HUD/FHA
The finance company gives you about 80% of the value of your house in cash. At a preset date in the future (10, 15 maybe 20 years) you had better be dead or moved out of the house because it becomes the property of the finance company.
It’s a loan set against the value of your house that you don’t have to pay back as long as you live there.
Go to aarp.org or ftc.gov
It is a legal way for banks to steal homes. It is a bad idea for most people.
Wow, again. The banks and lenders do NOT own your home at the end of the loan. The home is sold, the loan is paid off.
It’s a great product for some and not for others. Just like a whole life product is not a great life insurance product for some.. or an option ARM is terrible for some..
It’s very simple — if you’re over age 62, you can receive a % of your equity from a lender – they pay you. You don’t pay them. Closing costs are rolled into the loan. Heirs sell the home to pay off the loan if need be. Or, if you go into a home, you sell the house and you pay off the lender. It’s pretty straightforward, actually.
Talk to someone reputable is the biggest advice anyone could offer….
You are incorrect, the lender never takes the house upon death.