|
QUESTION:
|
Title Transfer Allowed & 2 Units | | My mother and I have lived together in my property for 8 years, she is 80 year of age. I am having trouble paying the mortgage and was hoping she could take out a reverse mortgage. She is currently not in title and the property is a duplex. We owe approx 265,000, last appraisal came in at 425,000. Can I put the property in her name and have her take out a reverse mortgage, does this work with 2 units. She is on social security and I am basically her caretaker. |  | asked by Looking for Answers, 2/5/2009 |
|
Categories:
Reverse Mortgages, Long Term Care, Mortgage Refinancing, Mortgages, Rollover and Withdrawals, Relationships, Asset and Income Protection Insurance, Mortgage Calculators, Caring for Aged Parents, Reverse Mortgage Calculators, Longevity Calculator, Debt and Mortgages, Reverse Mortgage
|
|
|
| ANSWERS: | | Answered by: Wes Hudson, 02/06/09
Overall Rating:  Be the first to rate it. | Hi Looking,
Here is what may work; There is a new product called a HECM Purchase.
Your mother could purchase it from you, but to do that, she would need some cash, maybe about 30%, the rest could be on a RM. So she would need about $128K. These would have to come from her own funds, they could not be gifted to to her.
Then, she could retire the mortgage. With this new product, 1-4 multi family units are allowed, provided the one unit is her primary residence.
If you try and transfer the title, most likely the lender would invoke a due on sale clause, meaning your whole 265 K would then become due. Check with your lender, ask them about transferring title to her.
In the previous scenario, you are basically selling the property to her for
425K, 128K cash, and 297K on a Reverse Mortgage.
Based on the new Mortgagee letter, there may be a way for you to sell the property below appraised value, and have her put up minimal cash. We have not received final confirmation on that at this time, but I doubt you want to give up 160K or a large portion of it.
The rules are pretty strict on the purchase funds, they are to come from the sale of a Residence, Savings, 401K, IRA, or other retirement funds.
If you are serious about exploring this, I'll be glad to help.
Blessings,
Wes Hudson
Ist Mariner Bank
910-262-4083
SeniorReverseMortgages@yahoo.com
I can originate Reverses in all 50 states
www.ReverseMortgagesNC.com
Login to rate this answer: | | Answered by: Tamera, 03/26/09
Overall Rating: Be the first to rate it. | If you were to add her to title, the lender would want to know that she has been residing in the property, and will continue to reside in the property. You can do this several ways.
Firstly, her identification and other verifiable information (bank statements, social security award letter, utility payments, must show her name and the address.)
Secondly, you would have to come off title, which may cause you problems in the future. If this is the only way to save your home from foreclosure, it may be worthwhile. This could possible help you stay in your home until the economy recovers a bit.
The lenders are going to very cautious doing your loan, and youll need to jump through a great many hoops to get them to do it. There is alot of property flipping, and seniors helping their younger family members keep their homes through a reverse mortgage. The Reverse Mortgage requires that the senior live in the home as thier primary residence.
And yes, you can do a reverse mortgage on a duplex, with the second property rented out, as long as the senior lives in the other.
I hope I was helpful.
Please dont hesitate to contact me should you have any questions
Tam
Tamera Field
Golden Gateway Financial
877-632-7890
tammyf@goldengateway.com Login to rate this answer: |
|
|
|
