Done a reverse mortgage, lately?

[Cedrus]

What is the name of your state? Oregon

We have been checking this out and other than the high up-front fees that are deducted from your proceeds, don't see anything bad.

What is the status of HR 1852 which will raise the amount you can access thru a reverse mortgage?

Mortgage insurance is a costly fee, 2%, I think, if you go with a federally insured lender.

If you go with a private, proprietary lender and are taking monthly payments and they go belly up (Countrywide or???) then there is a REAL problem. Correct?

If, however, you take a lump sum or a line of credit and you quickly take everything out and put it in CD's or something, than if the lender goes belly up, you are protected without paying for mortgage insurance. Is this thinking correct?

Anyone done a reverse mortgage in the past year? And how did it go? Any other comments?

Thank you

 

[HUD-1]

FHA Modernization Act will most likely be signed into law. (60-90 days??) FHA Maximum Mortgage limits should increase, the lenders may be limited in the points they can charge on a HECM. On a HUD/FHA HECM, if a lender goes belly-up, HUD takes over and makes good on the payments.

You are right about the costs, they are substantial. Deferred maintanance is an issue and there may be repairs required as a result of the appraisal

 

[Cedrus]

What I was asking in my second to last paragraph is: If I take ALL the $$ out and park it in my own account......and if the lender has some serious financial problems**************.I don't worry about receiving monthly payments or accessing the line of credit.

And I don't have to pay a mortgage insurance fee of 2%.

Am I correct or did I miss something?

Thanks

 

[Cedrus]

BUMP TO TOP. NO RECENT REVERSE MORTGAGES OUT THERE ?

I was most interested in my plot to eliminate mortgage insurance

 

[LindaP777]

You need to go to the "what's your opinion" forum.
This is a "legal" forum. Do you have a legal question we can help you with.