Reverse Mortgage

A reverse mortgage is when you tap into your home’s equity and receive monthly payments from a lender. Reverse mortgages are usually granted to retired or older people to help them make ends meet. The reverse mortgage must be repaid upon the death of the homeowner or when the home is sold. A reverse mortgage is also known as a home equity conversion mortgage or HECM. For more related stories click on the related articles listed below.

Is a Reverse Mortgage a Good Idea?

A reverse mortgage could be a good idea for a homeowner looking to refinance and pay off a second mortgage, but there are some drawbacks. Q: In your recent column in the Oregonian, you attempted to help a retiree’s attempt …

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Using a Reverse Mortgage to Purchase a Second Home

You can use a reverse mortgage to purchase and buy a second home, but you should also investigate the use of a home equity line of credit (HELOC) or a second mortgage. Q: We have a home that is fully …

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FHA Anti-Flipping Waiver Extended Through 2012

The Federal Housing Administration (FHA) announced today they will extend the temporary waiver of FHA’s anti-flipping regulations through 2012, in hopes the move will stimulate foreclosure sales. In a press release announcing the extension of the FHA anti-flipping waiver (click to …

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Using Reverse Mortgages For Health Care

The proceeds from a reverse mortgage can be used for health care expenses but the high costs and fees can outweigh the benefits. Q: Would you recommend that my 86 year old grandmother consider a reverse mortgage to pay for …

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401k Withdrawal Or Home Equity To Pay For Wedding

What would be better, the withdrawal of 401k funds or to obtain an home equity loan to pay for wedding expenses? Q: I am 57 and my husband is 62. We would like to borrow $25,000 to help pay for …

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Reverse Mortgage Is Not Assumable

Q: My mother has a reverse mortgage. I am 59 and my husband and I are moving into my mother’s house to take care of her. My brother and sister and I are currently in mom’s will to inherit the …

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Home Repair Loans for Seniors

Q: My mother is 80 years old and lives in San Antonio, Texas. Her home is approximately 50 years old. The house needs some serious remodeling. It needs to be leveled and the beams from the roof poking into one …

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HUD Ruling May Prevent Reverse Mortgage Foreclosure

Last week’s Department of Housing and Urban Development (HUD) ruling may prevent reverse mortgage foreclosure. AARP Foundation Litigation filed a formal challenge to a 2008 rule change on behalf of three surviving spouses of reverse mortgage borrowers, and the new HUD ruling may prevent reverse mortgage foreclosure. Seniors have been experiencing foreclosures but a new HUD ruling may prevent reverse mortgage foreclosure going forward.

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Need For Money Causes Family Members To Decide Whether To Get A Reverse Mortgage

When money is tight, senior citizens frequently look to the equity in their home for a solution. One way to tap into that equity is for a senior citizen to obtain a reverse mortgage. Reverse mortgages allow a person to obtain a monthly payment for the rest of the time they live in the home or allows them to take out a lump sum payment at one time. Before you consider a reverse mortgage, make sure you understand what it will cost to obtain the loan. Even if you are told that the costs will be put into the loan amount and you won’t have to pay anything out of pocket, you still need to know what those costs are. If you don’t understand the fees involved in obtaining a reverse mortgage, you will be surprised later on or your family members will be in for a surprise when you sell the home or are no longer around.

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Reverse Mortgage Threatening Home Equity For Seniors

Senior’s Home Equity may be at risk from reverse mortgage lending abusers, according to a report from the National Consumer Law Center. Reverse mortgages are being used by abusers of the subprime mortgage market as “tools” to profit from seniors. The National Consumer Law Center thinks that if protections aren’t put in place soon, not only will the life savings of senior citizens become depleted, but so will our tax dollars and economy. Read the full story on reverse mortgage abuse below from the National Consumer Law Center.

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