Reverse Mortgage

[Stone]

What is the name of your state? Ohio

May a private individual hold what is equal to a so-called 'reverse mortgage?' Thank you.

[tigger22472]

Originally Posted by Stone

What is the name of your state? Ohio

May a private individual hold what is equal to a so-called 'reverse mortgage?' Thank you.

Do you know what a reverse mortgage is? Either I don't understand your question or you don't know what you're asking about.

[Stone]

You're right; I haven't a clue what I'm talking about. For some reason, my friend was denied a reverse mortgage... I assumed by a bank. I wondered if it were legal for me, as a private individual, to try to step in and provide the money?

[tigger22472]

Originally Posted by Stone

You're right; I haven't a clue what I'm talking about. For some reason, my friend was denied a reverse mortgage... I assumed by a bank. I wondered if it were legal for me, as a private individual, to try to step in and provide the money?

Ok.. obviously you do not know what a reverse mortgage is. Let me explain with a scenario. An elderly couple are paying or or have paid off their house. They speak to a bank or mortgage company. They come in and appraise the home for what it is worth. In essence the bank begins to buy back the home from the couple. A reverse mortgage requires that as long as one of the two members of the couple are LIVING in the home the home cannot be closed on, however if for instance one dies and the other goes to a nursing home the bank can and will take possession of the home because it is theirs and no longer the couple's.

You have the right to buy the home from your friend which is what you would be doing. You should seek an attorney if this is something you are interested in doing in order to have the paperwork and orders drawn up correctly. Of course this would all be dependant on if and how much the friend owes as well as a multitude of things.

[Stone]

Thank you very kindly, tigger 22472. I just found out this evening about this situation. An elderly friend is not able to continue to make his mortgage payments; he was denied a reverse mortgage; I looked on the internet to try to find out what one was. Not understanding it, I used your site. Bless your heart for making this available for non-legal-minded people. I definitely need more information; I shall contact my attorney tomorrow. Again, thank you!

[tigger22472]

Originally Posted by Stone

Thank you very kindly, tigger 22472. I just found out this evening about this situation. An elderly friend is not able to continue to make his mortgage payments; he was denied a reverse mortgage; I looked on the internet to try to find out what one was. Not understanding it, I used your site. Bless your heart for making this available for non-legal-minded people. I definitely need more information; I shall contact my attorney tomorrow. Again, thank you!

You can google 'Reverse Mortgage' and find out a lot of information.
Any attorney you contacts should be a real estate attorney up on the laws adn what is legal and what is not. I cannot even tell you if this is possible at all to do. In essence what will likely happen is you will have to have your friend SELL you their house and that may not be what they would want as you would then become the owner, have another house payment and be in charge of repairs and the like taking the ownership away from your friend. I would discuss this with your friend before contacting an attorney.