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Reverse Mortgage Basics
Loan & Credit FactsMany consumers can benefit from an introduction to the reverse mortgage. This advance is a type of loan that allows a homeowner to borrow from their home’s value. The reverse mortgage has many interesting aspects to it for some homeowners to consider.
The borrower does not have to pay back any of the money that he uses in the course of the reverse mortgage. The package is designed for retired homeowners who need money but do not want to sell their current residence. Instead of selling, the customer simply borrows money against the value of the home.
The debt is to be repaid when the home is sold or in the event of the borrower’s death. Many elderly clients can benefit from this type of advance because they do not have to worry about repaying the debt. The money owed is simply taken out of the sale price when the home is sold.
But what if the borrower dies? The individual that inherits the home also inherits the debt. This is typically little trouble considering that the value of the home should greatly exceed the cost of paying off the debt. The loan company will work with the person that inherits the property to work out a viable agreement.
There is little risk of owing more than the home is worth. The lender accounts for the initial mortgage amount and the lender figures in the interest rate. The length of the loan and the home’s appreciation are also factored into the agreement. The amount of the money lent will not exceed the value of the home through the term of the loan.
Basic Requirements For Reverse Mortgage
A person will be typically unable to get a reverse mortgage if there is a lien on the property. In some cases, the borrower can use money that he receives in the loan to pay off any liens against the house. The lender will require that the lien be paid in full before making an agreement or the consumer will be required to pay the lien using monies from the loan.
The amount of the loan depends on a few factors. The home should be appraised and any necessary repairs must be made. The property’s location is another important component in the lending process. Well sought-after properties will yield more worth.
The interest rate will have an effect on the monthly installment and the overall cost of the loan. The borrower’s age is also a consideration. The reverse mortgage is designed for senior citizens. The older the borrower is, the more money he can receive through the loan.
The consumer has a few choices when it comes to the distribution of funds. He can opt for a lump sum, monthly installments or a line of credit through the reverse mortgage.
Mortgage Fraud Specific links
Mortgage Fraud News
Whistleblowers wanted for mortgage fraud probe - Politico (blog)
Whistleblowers wanted for mortgage fraud probe Politico (blog) By DARREN SAMUELSOHN | President Obama's task forcing probing mortgage fraud is offering "substantial financial help" to whistleblowers who help them find the bad guys. "We are particularly interested in information from corporate insiders – that is, ... |
Six Plead Guilty in $1.5 Million Mortgage Fraud Scheme - LoanSafe
Six Plead Guilty in $1.5 Million Mortgage Fraud Scheme LoanSafe (Source: FBI) - ALEXANDRIA, VA—Five individuals have pled guilty to conspiring together to secure more than $1.5 million in a mortgage fraud scheme involving a home in Gainesville, Virginia. A federal grand jury has also indicted an individual for his ... Fairfax Pair Convicted in Mortgage-Fraud Scheme |
Is Plano firm a vulture or a mortgage fraud fighter? - Fort Worth Star Telegram (blog)
 News10.net | Is Plano firm a vulture or a mortgage fraud fighter? Fort Worth Star Telegram (blog) The company's website says it is committed to fighting financial fraud, and its business strategy is apparently to sue. The lawsuits often accuses homeowners of overstating their incomes on mortgage application forms. The company has purchased tens of ... Calif. homeowners with foreclosed second mortgages targeted by firm Firm targets CA homeowners with foreclosed 2nd mortgages |
Mortgage Fraud Investigation Has a Coordinator, but Does It Have White House ... - The Nation. (blog)
 The Nation. (blog) | Mortgage Fraud Investigation Has a Coordinator, but Does It Have White House ... The Nation. (blog) Indeed, Stegman was already a member of a California-based mortgage fraud task force—though I'm not as certain his accomplishments there are necessarily exciting. I turned up a number of cases put forward by Stegman since being on the task force, ... |
Obamas mortgage fraud task force under fire - Politico
Obamas mortgage fraud task force under fire Politico President Barack Obama used his January State of the Union address to show he's on top of the housing crisis, announcing a new “special unit” to investigate mortgage fraud. But the much-ballyhooed group is now under fire from housing advocates and ... |