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Reverse Mortgage in India: Your property pays you a regular income
Getting into old age without proper financial support can be a very bad experience. The rising cost of living, healthcare, other amenities compound the problem significantly. No regular incomes, a dwindling capacity to work and earn livelihood at this age can make life miserable. A constant inflow of income, without any work would be an ideal solution, which can put an end to all such sufferings. But how is it possible? The reverse mortgage scheme offered by some of the leading banks in India could bring the required answers to the suffering senior citizens.
Disadvantages of a Reverse Mortgage
Although there can certainly be a few disadvantages of a reverse mortgage, in many cases a quality reverse mortgage issued by a reputable lender can be a reasonable solution for seniors who need extra income. This type of loan is not without its pitfalls, however, so applicants must enter into the process well informed of what the loan entails. Reverse Mortgages Explained A reverse mortgage is not a loan in the traditional sense. Reverse mortgages allow homeowners age 62 and older to tap into existing equity for immediate cash. While some seniors choose to receive the reverse mortgage proceeds in one lump sum, others prefer to receive the funds in installments.
Underwriting: The Process of Verifying Occupancy
All reverse mortgage loan officers know that the borrower is required to live in the home as his or her primary residence. But those who also understand what steps are taken to confirm borrower occupancy are at an advantage. When you and your customers know what’s expected, you can anticipate and address any potential red flags before loan files are delivered to underwriting. Using this knowledge can help you streamline the loan process and ensure a positive experience for your customers. It can also reduce the risk of borrower default and may even help you close more loans.
What Happens When the Reverse Mortgage Borrower Dies?
When the last remaining borrower dies, the reverse mortgage becomes due, right? Actually, it’s slightly more complicated. Since most lenders will periodically check on the status of the borrower(s), they will probably learn of the death shortly after it happens. At this point, a letter will me mailed to the primary beneficiary/heir (designated by the borrower and confirmed in the will) apprising one of the situation. Specifically, you have a few options: 1) Repay the loan in full and keep the property. 2) Sell the property and use the proceeds to repay the loan.
Choosing a Consultant for Reverse Mortgage Price Counseling
Counseling for Reverse Mortgages is Advisable or What Your Reverse Mortgage Counselor Should Do For You As reverse mortgages grow more and become more popular, the major concern of the US government is protecting seniors from the repercussions of a bad decision. This is one reason why the American government requires all reverse mortgage applicants to take credit counseling before their loan can be processed. Membership-based organizations including the AARP have counselors whose job is to help senior citizens find their way through reverse mortgage loan industry.
Credit Union Mortgage Association | Reverse Mortgages: Purchase Money
HECM for Purchase is defined as a real estate purchase in which title to the property is transferred to the HECM applicant, the applicant will occupy the home as a principal residence, and the HECM lien(s) will be the only liens against the property at the time of closing. HECM applicants must occupy the property within 60 days from the date of closing. Eligible Property Types Only 1- to 4-family dwelling units on which construction has been completed are eligible for the HECM for Purchase program. Loan proceeds may be used to satisfy outstanding payment obligations associated with a land contract, contract for deed, or other similar purchasing arrangements that will ensure the property, which will be used as collateral for the HECM.
How Does a Reverse Mortgage Impact Your Heirs? - Reverse Mortgage Information
If you are considering a Home Equity Conversion Mortgage (HECM) loan, you will most likely want to discuss this option with your heirs. A common first reaction among heirs may be skepticism. Often times, heirs are concerned about their potential inheritance being at risk. However, many heirs are unaware that a HECM loan may not necessarily deplete all of the home’s equity. If you take out a HECM line of credit loan or choose to receive your funds on a monthly basis through an adjustable rate HECM loan, you can use the funds as needed, thus preserving your home’s equity.
Asheville, NC CPA / Gould Killian CPA Group, P. A.
If you're 62 or older and looking for money to finance a home improvement, pay off your current mortgage, supplement your retirement income, or pay for healthcare expenses – you may be considering a reverse mortgage. It's a product that allows you to convert part of the equity in your home into cash without having to sell your home or pay additional monthly bills. This Financial Guide explains how reverse mortgages work. Three types of reverse mortgage plans are available: Single-purpose reverse mortgages, offered by some state and local government agencies and nonprofit organizations Federally-insured reverse mortgages, known as Home Equity Conversion Mortgages (HECMs) and backed by the U.
ASB ditches reverse mortgages
ASB closed its HomePlus reverse equity product to new business from August 3. That leaves only Heartland, HSBC and SBS offering reverse mortgages to New Zealanders. While new HomePlus applications will not be accepted any longer, existing HomePlus customers can still use the product. An ASB spokeswoman said since its launch in 2010, ASB HomePlus had been a satisfactory product for the many customers who used it to borrow against part of the equity in their homes. “However, ASB has decided not to continue this niche product at this time. ” Massey University banking expert Claire Matthews said it was a very niche product.
Understanding Reverse Mortgage Counseling
In order to be eligible to apply for a reverse mortgage, one of the requirements to fulfill is to attend a counseling session with a counseling agency that is approved by the U. S. Department of Housing and Urban Development (HUD). To find reverse mortgage advisors that are HUD-approved, please click on this link: https://entp. hud. gov/idapp/html/hecm_agency_look. cfm Counseling allows you to speak with an unbiased reverse mortgage advisor whose entire purpose is to help you determine if the reverse mortgage option is the best one for you. WHAT HAPPENS IN A COUNSELING SESSION? The HUD-approved counselor will speak with you about many aspects of a reverse mortgage.