If the line of credit has grown and exceeds the home value at the death of the RM holder is the excess for the heirs lost? If so should the RM holder then always access the line of credit money when it exceeds the home value so the excess is not lost at death and can therefore be used or gifted to heirs
Hi there! Yes, if there is any money left in the line of credit after the last remaining borrower has passed, that line of credit will no longer be accessible. So, it would certainly be more advantageous, if the line of credit grew beyond the homes value, to withdraw everything out prior to their death. As that would leave more for themselves or heirs than the sale of the property would. Hope that makes sense.
My mothers husband took out a reverse mortgage. He died and I had to move my mother in with me. What options are there to do. Can we still sell the house even though she is not dead
Yes, you absolutely can still sell the home. There is never any prepayment penalties for reverse mortgages. So, if she is either a borrower on the loan or she is the heir to the property, she should be able to sell the property at any time, repay the reverse mortgage, and keep whatever equity was still left in the home.
Hi there. Unfortunately, no. Reverse mortgages are not assumable. Although, payments can be made towards the loan, if the borrower chooses. But borrowers cannot change. Hope that helps!
Hi Lester. There is no timeframe for the last remaining borrower after the other passes away. They will be able to continue on in the reverse mortgage and in the home for as long as they live. No matter how long that is.
@@reversemortgageeducation Thanks for the information, Taryn. My last question would be, about how long does it take to set up a RM from beginning to end? Just a question, I am not in a hurry.
Hi there! I would say the short answer to this question is that it's possible, depending on the situation. As well, whether or not the borrower(s) are still living will play a role. With that said, reverse mortgages are non recourse loans which means the lender cannot look to other assets to repay the loan obligation. However, it doesn't mean they cannot still choose to foreclose on the property. If I had more details on the situation, I'd be able to be more specific in my answer. So, if you'd ever like to discuss further, please don't hesitate to give me a call. (888) 982-0475.
Thank you very clear menssage.
My banker told me doesn’t matter how much equity there is, the home belongs to the lender not the heirs.
Hi Billy. With all due respect, your banker is 100% incorrect.
Can you still do a reverse mortgage if there are no heirs or you want no one involved? Is it required?
Hi there! Yes, you certainly can still do a Reverse Mortgage if you have no heirs. It does not matter if you do or don’t. Hope that helps!
If the line of credit has grown and exceeds the home value at the death of the RM holder is the excess for the heirs lost? If so should the RM holder then always access the line of credit money when it exceeds the home value so the excess is not lost at death and can therefore be used or gifted to heirs
Hi there! Yes, if there is any money left in the line of credit after the last remaining borrower has passed, that line of credit will no longer be accessible. So, it would certainly be more advantageous, if the line of credit grew beyond the homes value, to withdraw everything out prior to their death. As that would leave more for themselves or heirs than the sale of the property would. Hope that makes sense.
My mothers husband took out a reverse mortgage. He died and I had to move my mother in with me. What options are there to do. Can we still sell the house even though she is not dead
Yes, you absolutely can still sell the home. There is never any prepayment penalties for reverse mortgages. So, if she is either a borrower on the loan or she is the heir to the property, she should be able to sell the property at any time, repay the reverse mortgage, and keep whatever equity was still left in the home.
Hi Taryn where are you located?
Hi! We are in Gilbert, AZ.😊
Can you do a RM on a second home?
Unfortunately, you cannot do a reverse mortgage on a second home. It must be your primary residence.
If your house is in a living trust can you get a reverse mortgage?
Yes, you most certainly can.😊
Can someone take over a reverse mortgage and pay down on the loan?
Hi there. Unfortunately, no. Reverse mortgages are not assumable. Although, payments can be made towards the loan, if the borrower chooses. But borrowers cannot change. Hope that helps!
Would a Deed in Lieu or foreclosure avoid probate?
Hi there! I think I’d need a bit more information about this situation to help here. Please feel free to give me a call to discuss. (888)982-0475.
Both RM must pass but is there a timeframe the last one needs to pass?
Hi Lester. There is no timeframe for the last remaining borrower after the other passes away. They will be able to continue on in the reverse mortgage and in the home for as long as they live. No matter how long that is.
@@reversemortgageeducation Thanks for the information, Taryn. My last question would be, about how long does it take to set up a RM from beginning to end? Just a question, I am not in a hurry.
My pleasure! A typical turn around time for the reverse mortgage transaction would be, on average, between 45-60 days.
Is short saling an option?
Hi there! I would say the short answer to this question is that it's possible, depending on the situation. As well, whether or not the borrower(s) are still living will play a role. With that said, reverse mortgages are non recourse loans which means the lender cannot look to other assets to repay the loan obligation. However, it doesn't mean they cannot still choose to foreclose on the property. If I had more details on the situation, I'd be able to be more specific in my answer. So, if you'd ever like to discuss further, please don't hesitate to give me a call. (888) 982-0475.