Article by Juhani Tontti
The reverse mortages are home loans, which you can get despite of the fact that you have bad credit. The reason is simple: borrowers take the reverse mortgages always against their home equity, so the lender has no financial risk.
This bad credit issue is a hidden benefit, when people think how do reverse mortgages work. This feature makes reverse mortgage loans a fine tool for financial planning, so the term mortgage misleads a little bit.
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in fl. proceeds from reverse mortgage was in bank account and spent by debtor. credit card co. is now putting judgement against debtor, but there is no money left from the reverse mortgage equity loan. what can creditor do? the debtor did not have judgement on him when he spent the money
My mom has passed and left me her home, only problem is she had a reverse mortgage on the home. My fiancee and I live in the home and would like to stay in the home. How do I keep the home?
Thank you for your answers, but isn’t their some kind of creative financing i can find?
Reverse Mortgages!
Reverse Mortgage is different from normal mortgage. Mortgage is a form of hypothecation of the property to the banks as a security for a loan. The common form of security, which banks insist, is on the mortgage of the house for which the loan is being availed of by a borrower. Mortgage refers to the transfer of an interest in specific immoveable property for the purpose of securing money advanced. The transferor is called a mortgagor, the transferee a mortgagee, the principal money and interest of which payment is secured are called the mortgage money, and the instrument by which transfer is affected is called a mortgage deed.
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My 70-year-old aunt just refinanced AGAIN for a 30-year mortgage. Who expects to be paying at mortgage at 100?
Anyway, after doing some research I have learned that she has refinanced about three times and has bad credit (576 score).
I want to help her figure her way out of this. She said her son and her adopted son (who is 11) won’t want her house when she’s gone. So I found out about the reverse mortgage.
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My grandmother left me her house, but it had a reverse mortgage so I would have to refinance in order to keep it. The house has a 50k balance on it. I have high risk credit and I am a nurses aide who makes less than 30k a year. I paid off a few thousand dollars of debt over the past year but I don’t know if that helps. Anyway, my question is with my stats would it be worth my time trying to refinance or should I just sell the house? I know banks are tough but would private lenders be willing to refinance me?
I found out after pulling my credit report that my mortgage lender was reporting me as $6,400 past due on December 31st when one of their agents told me on December 29th that all that was needed to bring my account current was $858. When I inquired last week about the reporting to the credit bureaus, I was told to send a letter to the research department. It was also suggested that I request a loan modification. Within a day after they sent the paperwork for the modification, changes had been made to my account history reversing payments made in December and not displaying payments made in January, and showing a negative escrow in the amount of $6,400. Needless to say, I haven’t submitted the modification paperwork. This reporting has caused my credit score to plummet. What recourse do I have?
The government adopted easy credit policies over a number of years to help people who are unqualified to get mortgages. The Community Reinvestment Act is one notorious example. This act required affirmative action (that is, reverse discrimination) in lending because large numbers of minorities were incapable of affording a home. The Association of Community Organizations for Reform Now (ACORN) had their activists trespass on bank property, obstructing bank customers until the banks agreed to loan money to people who were unqualified. Fannie Mae and Freddy Mac lowered their standards, encouraging banks to give out unsound loans (many Republicans proposed regulating Fannie and Freddy to stop this, but Democrats and some other Republicans stopped them from doing so). Most importantly, Alan Greenspan at the Federal Reserve decided to lower interest rates to absurd levels (largely for short-term political gain as President Bush needed the illusion of economic recovery in order to deflect attacks from Democrats over his economic management and Alan Greenspan, of course, is a good Republican who wanted to help out his party).
George W. Bush and the Republicans also deserve portions of the blame. Bush’s American Dream Downpayment Act was part of a trend toward the elimination of downpayments as a safeguard against unqualified people being given mortgages. The bankruptcy reforms of the Bush years also played a role, as creditors were more willing to loan, since they knew that it would be nearly impossible for the debtors not to repay them. As a result, insanity ensued, as a bank issued a credit card to a tree (see: http://www.snopes.com/business/bank/treecard.asp ).
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The federal government has made the terms of the reverse morgage loan as flexible as possible, so that most of the seniors age 62 or over could get this loan, if they want. One thing, which helps a lot is the compulsory mortgage insurance, which means that the lender will always get his money and that the borrower will never owe more than the equity of the home.
1. The Guarantee For The Reverse Mortgage Loan Is The Equity Of The Home.
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We have non recourse reverse mortgage and we have to move out period. we want to use the credit line to pay off credit card debit. Also if it is a non recourse loan can their be a foreclosure. We have excellent credit but now moving is … …
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