• Question
  • Reverse Mortgage in Condo when there is a pending personal injurty suit against the Condominium

    Asked on 7/27/2009

    I want to obtain a reverse mortgage on my condominium but was told because an owner has a lawsuit for personal injury against the building, FHA/HUD would not allow a reverse mortgage until the case is settled. Is this true?

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  • Categories: Reverse Mortgages, Coops and Condos

Answers

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  • Yes, this is probably true.

    When you secure a Reverse Mortgage, ALL liens against your property -- mortgage and other -- must be paid in full.

    The proceeds from a Reverse Mortgage are used to pay off the mortgage and any other claims on the property. Any remaining equity is available as cash, a line of credity or an annuity.

    The pending suit is considered a claim on the property and must be settled before your loan amount could be determined.

  • Login to rate this answer:   Answered on 8/7/2009
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  • Yes this is true, if you would send me you name, address, phone number and date of birth, i can notify you when the case settles and i can send you a quote for your reverse mortgage based on your agae, equity and the current interest rate available to you at that time or you can email me directly or call me. Robert Frnaco (robert.franco@genworth.com) 954-938-9610

  • Login to rate this answer:   Answered on 9/19/2009
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  • Another option maybe to consider selling your condo and purchasing something else with the HECM Purchase product. You can now use a reverse mortgage to purchase a home.

  • Login to rate this answer:   Answered on 9/25/2009
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.