How To Use A Reverse Mortgage To Repair A Home

There exists a common misconception that a reverse mortgage can be used to fix a home, with no further clarification. It appears to stem from various marketing efforts that you see in print or on television, that make it seem like a simple process. The general perception is that we can close a loan for a customer with a home in disrepair, and provide the cash at closing needed to do the repairs. Unfortunately, that is far from the case in many instances.
Continue reading

Using A Reverse Mortgage To Settle A Divorce

Are you over sixty two years old and looking for a way to split your home equity as part of a divorce? Are you opposed to the idea of selling your home?

Using a reverse mortgage to make the fifty percent equity payment can be a low risk way of taking care of the spouse that will no longer occupy the property. It can also be an alternate solution for those that would have a significant tax hit for liquidating investments to make the payment.

Continue reading

Why You May Need Power of Attorney to Obtain a Reverse Mortgage

Are you under the impression that you will easily be able to make all financial decisions for your spouse should he/she become incapacitated? Marriage alone is often not enough. In our small section of the mortgage industry, we often find that people are unaware of the requirement to have written legal authority. Since we are speaking with clients over the age of sixty two years old, it is common to hear of one spouse having early signs of Alzheimer’s or having a stroke that leaves them incapacitated. It is never too early to be prepared for this difficult situation. Continue reading

Reverse Mortgages and Non-Borrowing Spouses

The Department of Housing and Urban Development (HUD) decided to make changes to their non-borrowing spouse rules, effective for loans written on or after August 4th, 2014. There are several active lawsuits against HUD as a result of their old non-borrowing spouse rules, all due to the surviving spouse being told they must repay the loan or face foreclosure. There was always too much risk to the non-borrowing spouse under the old rules, so these changes are welcomed by everyone that follows the industry.   Continue reading

Houses Made Of Money
Senior man having headache while using laptop.