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QUESTION:
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Reverse Mortgage for Reverse Mortgage |
| I'm 68 years old, my mother is 91. She has a reverse mortgage of about $150,000 on a house that's valued at ~$300,000. Can I purchase her house, pay off the reverse mortgage and immediately put my own reverse mortgage on it? To make it even better, can I pay off her reverse mortgage with my own reverse mortgage so I wouldn't have to get a regular mortgage first? I will sell my own house and her home will be my new primary residence. |
 | asked by Spherebob, 11/13/2010 |
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Categories:
Reverse Mortgages
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| ANSWERS: |
| Answered by: whyhecm, 11/16/10
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You maybe able to accomplish this. There are lots of questions that need to be answered though. Login to rate this answer: |
| Answered by: Tamera Field, 11/17/10
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Hi Spherebob! Ill do one better...You CAN do it, In one transaction. Assuming you are at least 68, the home is valued at $300k, on the fixed rate program there would get about $187,100. After paying off your existing mortgage of $150,000 there would be a lump sum available in the amount of $37,100. The only costs associated right now with this program are the third party closing costs, and the mortgage insurance premium. The current fixed rate I am quoting you is 4.99%. I see two possible issues. The first is your mother willing to sell you her home? Is she still able to handle her financial affairs? I ask because if you hold the durable power of attorney for her, it would be considered a conflict of interest for you to sign on her behalf to sell yourself the home. Secondly, there may be a seasoning issue if the other home is not sold by the time you apply for the reverse on Moms property. I would definitely try to sell the other home first. Login to rate this answer: |
| Answered by: Raymond Denton, 11/21/10
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Yes Spherebob, you qualify and there won't be any problems. It'll be easy to accomplish your goal by purchasing your Mom's home with another Reverse Mortgage, and there won't be any issues using a Power of Attorney, or with Title Seasoning. Raymond Denton Login to rate this answer: |
| Answered by: James Dale, 11/19/11
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Considering you both qualify for reverse mortgage it wont be a problem at all! Login to rate this answer: |
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