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We inherited a home with a Reverse Mortgage on it. Not fun! You need to pay off the loan right away or sell the home within a given amount of time. The lender has rights to to property that should be unconstitutional. It is great for the people that own the home and need money but the rights of the survivors are inhibited.
Les & Sarah Oswald
San Tan Valley, AZ
I hear not so favorable mentions on this subject during and afterwards
San Tan Valley, AZ
Richie Alan Naggar
Surprised, as the only one I have done was absolutely easy peasy! This was prior to new regulations though. Best of luck!
I did close one earlier in the year, it was A SFR though. It took about 45 days and was similar to a fha type loan.
I haven't heard any horror stories, maybe because they are realitively rare.
A reverse purchase should be a fast easy transaction. They take the class. They provide SSI card and second form of ID. They discusss which type they want. Close in a couple days. Sounds like lender isn't going out to their house and finishing the circle. If you need guidance call me I can talk them through the bumps It doesn't make sense to switch lenders but get them to the finish line. Is it Liberty? biggest negative is it is VERY EXPENSIVE
I haven't had to do a transaction that included one of these but inherited a home with one and consulted for a friend using one to purchase (in another state). Not fun in either case!
Jeffrey Jones - not yet.
And from your question, it seems, it's not something that is really desirable.
Grateful not to have had the experience first hand. Heard reverse loans take bigger bite than loan sharks.
There are a number of older folks sitting on expensive lots that they paid little many years ago. All can survive from their pension and soicial security.
They will not even consider a risky reverse mortgage even after someone brings in a pine wood box.
This transaction should be a good blog topic.
Seems risky, hope they have wise counsel.
Not so far
I have been on both the buying and selling side, including short sales.
They are different, but I did not find them difficult. Like every 'non-typical" purchase or sale, you need to read all the instructions.....then do it again.
The pay off and associated fees I thought were entirely reasonable.