What Heirs Should Know About Reverse Mortgages When The Owner Dies
HTML-код
- Опубликовано: 14 май 2018
- In this video, Attorney Williams highlights key points of consideration for heirs whose parents obtained a reverse mortgage prior to death. This video discusses whether the mortgage company should be notified of the death of the property owner, whether a spouse who is not on title to the property can continue the reverse mortgage, and whether the children can buy the property and how much they have to pay.
FOR LEGAL CONSULTATIONS
→ To schedule a 15 Minute Free Strategy Session, call 305-967-6741 or text 786-831-9483
→ For a 45 Minute Personal Strategy Session for people seeking answers to heirs property, probate
or estate planning questions, click here ↓
vcwlaw.samcart.com/products/s...
→ For a 90 Minute Strategy Session For Families seeking answers to heirs property, probate or
estate planning questions, click here ↓
vcwlaw.samcart.com/products/s...
RESOURCES AVAILABLE
→ For a single resource that guides you as you make 8 critical estate planning decisions, get the
Hardcopy Book - Make A Will, Do It Right (Or The One You Don’t Like Will End Up With All Your
Stuff!), click here↓
vcwlaw.samcart.com/products/m...
→ For a comprehensive guide, get the Estate Planning Decision Action Roadmap System containing
the 4 Ebook resources (1) Checklist of 25 Things To Do To Get Your Affairs In Order; (2) 25
Estate Planning Tips To Help You Avoid Legal Nuisances And Nightmares; (3) Estate Planning
Summary Chart on 8 Key Estate Planning Decisions and (4)Make A Will, Do It Right (Or The One
You Don’t Like Will End Up With All Your Stuff!) discussing 8 Key decisions, click here ↓
vcwlaw.samcart.com/products/e...
After seeing the numbers, I see a reverse mortgage as a horrible deal. Best to sell the property outright and move in to an apartment if greater income is required.
Jerry I agree with you that the numbers are in the banks favor but I personally have seen R.M.s work perfectly for people who are responsible . Now don’t misunderstand me, if they run up credit cards and take expensive vacations you can go through the cash in the R.M. very quickly. It boils down to living comfortably and not spending money like a sailor on shore leave. As I said earlier I have seen them work extremely well for responsible people and I have seen disasters from people who want to spend money without thinking about the consequences and risks
@@bobdees6428 I would wager that most people who need a reverse mortgage to pay the bills have not lived a fiscally responsible life and will not live one after they take out the reverse mortgage. It makes sense if you are doing it because you have no other way to pay for groceries, utilities, and medical but other than that there are better ways.
What a big mess for someone to clean up. It is best to sell your home when you can no longer afford homeownership. Banks don’t do anything that is not in their best interest.
Thank you. Your podcast is very informative.
Very helpful. Thank you!
Thank you. This is important information.
Thankyou for this information, my mom is 88 and living in my childhood home on a reverse mortgage. I now understand more what this means.😊
Good info. Good presentation!
Thanks for sharing great info
Solid advice, a reverse mortgage can be very complicated
Thank you. Very informative
They should call it what it is-a LOAN! Someone has to pay it back. Another thing-my grandmother was on medicaid for a very short time. After she passed, the state was going to seize her modest house. My parents paid the state in order to keep it for another family member. There really is no free ride. I just get so upset at the reverse mortgage ads.
Mortgage is a loan.
What does medicaid have to do with a reverse mortgage?
Thank you Vernita. This shared video was very helpful.
Very good and accurate information Vernita. Thank you for putting out these videos, Looking forward to more videos and tutorials in the future! Keep up the good work! :)
Well done. Thanks!!
Very clear, concise
Glad it was helpful!
Thank you so much!
Thank you for your clear informative presentation. I am viewing this 5 years after you posted it so will seek out updated info on these kinds of mortgages. You've given me a good starting basis for understanding these reverse mortgages. Thank you!
Very well done. You just stated a great case for a reverse mortgage. Most seniors want to live and pass in their own comfortable home they've lived in for years/decades not sharing a room with one or 2 people with a curtain in between at $6-10,000 per month cost. Why not stay in your home mortgage free and with the line of credit or monthly inocme you are receiving use for home care in YOUR HOME. A reverse is more about lifestyle changes then rates and cost and speaking of cost, what I find humorous is the negative that reverses are pricey. Do the math on closing costs on a reverse or paying a realtor 5-6% of the sales price and see what costs more. Where will the Senior go when the home is sold? Seniors need to get busy living, not stressing in their later years and a reverse on a case by case basis works. By the way, the cash out is tax free unlike capital gains you are hit with on a sale. carlos@myflexnow.com for more answers.
Thank You 🙏🏽 this really helped me
Glad it helped
🔥🔥💪🏿‼️
Great video Vernita, I'll be in touch!
OK. Looking forward to speaking with you.
I want to thank you so much for making this video. My father is still living. I live there with four other family members. It's nice to know at the very least we have time in the house. It isn't just an automatic EVICTION. All the other grandchildren out of the house aren't looking for monetary inheritance. It's just me and the members currently living under his roof for now. We just need the time to move. It's what's best because none of us have money necessary to repair things in the house, the property tax, and this NEW mortgage. Hell no, not in Southeast Queens, NY. Your video helped me A LOT. God bless✝️🕊
Sounds like a bunch of unmotivated bums....
Good info
Thank you!
Great info!
Avoid all of this by using irrevocable trust, before they die
What if the reverse mortgage holder has not died, but has moved into an assisted living community?
Then they will no longer be occupying the home as their primary residence and the loan will be due. They should be communicating with the lender about their intent to leave the home and how the loan will be repaid by selling.
Sharing and linking to my own video on the reverse mortgage scam.
My Mother has one of these. It doesn’t even sound healthy. I’m not sure why people think that a company is going to continuously give them money for free.
Tamira...it is not free, the mortgage co can retain the house for them to sell...
the owner has the money to use while alive, instead of leaving the house to whomever, the gov. in other words your mother can live better, but what she leaves will be less, you will get less...not bad
Correct. This in no way is free money. The bank is hoping the house value goes up and the owner dies.
Just tell your parents not to do something stupid like take out a reverse mortgage.... And the kids should be there for them if they cannot make the payments...
Not all kids will take that responsibility. Hope all kids knows how mortgage works too.
I like your bedside manner Vernita😊
🔔🔔🔔🔔
Very helpful Reverse Mortgage info 💗
.
.
Especially the assumption/refi of the spouse.
Thank you again Vernita!
Glad it was helpful!
Hi. Thank you for this video. I have a situation where there are multiple heirs to a property. The foreclosure process has started. One person in the family has the means to save the property by getting a loan for the entire amount of the loan. However, he will only save the home if he can be guaranteed a deed with his name, and his name only on the deed to become the sole owner. Is this possible? If he put down the money, even though there are living rightful heirs, can he become the only owner simply because he pays for the home? Also, how do you start the process of putting living heirs on the property after someone has passed?
Hello, and I felt I needed to say, "Thank You!" for creating this video. You were a lot of help with the questions I had tonight. So, that was super helpful! Also, I did write down your phone number and hope to call you if necessary! I rate this video a 10! You're the best! Janine
My mom just passed. I called the reverse mortgage company to advise them. I alerted them the house in in a trust, we intend to sell and they gave us a timeline, and what i needed to do etc. I received a phone call last night from an appraiser saying he had been hired by the mortgage company to appraise my mother's house. My question is, can the appraisal that is done by the mortgage company be used against me in any way? I fully intended to get an appraisal done prior to listing the house. i have heard that many reverse mortgage companies do not act in good faith and since there is a lot of equity in my mother's house, i am concerned. Do i have to comply and grant access to my mother's house to an appraiser hired by the reverse mortgage company?
Hi, im curous how this is playing out. Thanks!
Yes, any updates?
Yes, you do have to give them access.
Thank you for your explanation. Unfortunately dealing with this now
Good luck in dealing with this situation. Call me if I can be of further assistance. 305-967-6741
Great info currently a LO in reverse mortgages and your spot on!
Same here, my mother in law who lived downstairs from me and my wife took out a reverse mortgage in early 2013 (which we were aware of) for the tune of $181k which only $1875 is left at this time. Unfortunately my mother in law passed away a few weeks ago and we just received a letter we have a month to pay off over $241k which we're in the process of applying for a mortgage to pay off the reverse mortgage. Other than for about $50k or so we can't account for what she did with the rest. So to me getting a reverse mortgage can be a selfish thing to do since the borrower isn't the one left holding the bag.
Kids children must be efficient after mom or dad dies. You must be on the ball or things will get stressful
You know I mean it's it was a total scan and I do appreciate this what she saying because it is shed light it's just that the heirs and my brother and I are heirs now we have to sort through it and figure out and he's done things on the house he's worked on the house so of course we want to keep it but it is it's a mess when they take elderly people who made it be who veterans who who didn't understand what they were signing and then you know the family has to come in and and see it from the angle than they have to figure out what are they going to do for the money I mean you know and you don't know if you send all these payments and I think it's a scam
Question after the reverse is due who pays the insurance, taxes and hoa,the heirs until the mortgage is paid by selling or refinancing or giving it up .Or does the servicing company pays.
My father took a reverse mortgage. When he passed (during housing crisis) the company told me that I had to keep the property insured (naming them as beneficiary) and pay the taxes. They refused to let me buy the home for the fair market value. They wanted almost $300,000 for a home valued at $180,000. They auctioned it off and got $180,000. A guy knocked out two walls and sold it for $310,000. Never do a reverse mortgage. I took care of my parents for 30 years and took nothing because that's what you do for parents.
It sounds like you were doing what this "company" told you. However, you should have been able to buy the house for market value. Did you hire a lawyer or did you try to deal with them on your own. I see a lot wrong with what you were advised. I guess the company was looking out for the company and not for you.
@vernitawilliams839 no we didn't have attorney. The trust named me as beneficiary but there was nothing left. Company was Financial Freedom. I hope they're out of business now. Horrible Horrible Horrible company!
Do you help people from a different state from where you practice? My mother's house is in Massachusetts. Just the thought of selling my childhood home is keeping me up at night. I need help!
Yes, I sometimes assist people in different states. It depends upon what you need. Call me at 786-831-9483
What happens if the property is trashed? How is the value appraised? Do I have to pay for an appraiser or do the Reverse Mortgage company pay for it?
What if the home has depreciated? And it wont sell for the full amount borrowed... (Reverse mortgage is 200 k and home appraises for 150 k... )Will I be responsible for the other 50k or just 95 percent of the appraised amount?
Heirs are not obligated to repay the loan. The note is a non recourse mortgage obligation.
SO many things have changed/improved in the Reverse Mtg since this video was done however and for many many people it is a blessing and in many cases they are used for financial planning strategies.
Absolutely
Hello my grandmother has passed she had a reverse mortgage. I am currently going through probate so I can be the representative of the home. My fear is will the reverse mortgage full loan amount or the 95% be due in full? Or can I make payments on the loan balance?
With a reverse mortgage, you typically cannot make payments. You can buy the property using a traditional mortgage and make payments to the new mortgage company. The new traditional mortgage will be based upon the amount you bought the house for. For a strategy session, please call me at 786-831-9483
How do I find out what bank my grandfather has a reverse mortgage with? He suffer from dementia so its not easy asking him questions. Is there a way I can find out that info on my own.
If there is a reverse mortgage, that information should be in the county records, stored in the same manner in which deeds are stored. Go to the county recording office and ask for any mortgage documents under his name. Once you find out, you will probably have problems getting the mortgage company to talk to you as your name is not on the mortgage. If you get permission in writing from your grandfather and send it in to the mortgage company, you may be able to speak with the mortgage company about the reverse mortgage. Be careful in what you are doing because, if your grandfather is no longer living in the house, the reverse mortgage company may commence foreclosure as the mortgage becomes due when the person who obtained the mortgage no longer lives in the property.
My mother house is on a reverse mortgage loan, I'm considering buying it.
It appears like the bank loan balance is lower than the market price, which could be a great deal for me, or does the bank sell it at market price ?
1. Is your mom still alive? she would dictate the sales price 2. if she has passed and you are the heir, you can refinance the property under your name and that loan amount is your purchase price.
Wilson, you can purchase the home at any time for any price. You simply have to satisfy the debt that is currently on the house.
May I explain a particular situation, there's a reverse mortgage on the property and the person that borrowed the money is getting very sickly, and the family wants to keep the property, is there anyway they can start making payments or another way to get rid of this loan before she passes, she said she borrowed 100k but I'm thinking it could be more. Please advise and thanks
Reverse mortgages typically do not allow the making of payments. They usually require one payment which pays the mortgage off. This is why someone in the family will have to buy the property if the family wants to keep it. Remember to plan your strategy now as you will not have much time to make a decision if the original owner passes away. Most reverse mortgage companies will commence foreclosure in somewhere between four to eight months after an owner passes away. The foreclosure action is likely to be filed more quickly if it does not appear that the family is making a reasonable effort to address the need to pay off the balance on the reverse mortgage loan.
@@vernitawilliams839 thank you
Hello Vernita love your informative and easy to understand videos.
To cut to the chase, my situation is Im the adminstrator of my mother's estate. She passed last summer and the reverse mortgage is in the extension stage. Its a HUD loan adminstered by a private co.We owe about 350k. House has been appraised at 450k. We should have an apprx 215k HELOC (from a kind relative) available in a few weeks. Does anyone out there know if we make an apprx 200k down payment to the reverse mort.holder, would they possibly be willing to extend us for another 6 months or so. The idea is to buy some time and then i will be in better shape to secure a mortgage for the remaining amount. Any info/advice would be greatly appreciated!
This is a headache. My parents have a reverse mortgage and I want the house, but I am not working because I was taking care of my mother who had colon cancer. She asked the reverse mortgage bank how she could add my name to the title and they never responded.
The reverse mortgage people are known to not respond. If your mom has passed away and your name was not put on the deed before her passing, you will need to do probate to get your name on the deed. Once your name is on the deed and if you are old enough, perhaps you can get a reverse mortgage of your own. Otherwise, you will need to buy the house outright. I would need to know more to advise you properly. Are you in Florida? Can you call my office and 305-967-6741 and make a telephone appointment?
@@vernitawilliams839 Thank you for your reply. I will call you. I am not in Florida and I am not 62 years yet to do another reverse mortgage.
@@carlel4219 What ended up happening? I’m in this position now and heard I could sell the house without probate.
They also try to tell you to not bring a lawyer for the application process.
Does your house need to be completely paid off before getting a reverse mortgage?
The house does not need to be completely paid off to get a reverse mortgage. However, the house does need to have enough equity for the approval of a reverse mortgage.
@@vernitawilliams839 Thank You!
My grandparents have a reverse mortgage. Can I purchase the property from them while they are still here?
Yes, you should be able to purchase the property.
A reverse mortgage is no different from having any other mortgage on the property. The property owners can sell the property and the mortgage (which is a lien on title) is paid through the proceeds of the sale.
Hi, could you give me a call I have a reverse mortgage I would like to get out of
Can reverse mortgages create a mortgage overage from an auction sale?
Yes. It is possible that an auction can create an overage if what was paid in the auction was more than what was owed.
Yes, I do have a few questions on a reverse mortgage. I have had a reverse mortgage for 13 years now. Our house had been appraised at $225,000. We were given a percentage of that amount. We were told that when my husband and I passed, we would only pay back the $225,000 not what the fees etc. totalled. That way our children could purchase the house on that amount not what had been ecrued for the last 20 plus years.
Also, I have a friend who is 75 yrs. old, he has been ill. His wife is in a nursing home for Alzheimers. He needs cash to help pay for that bill. He was told that if he were to get a reverse mortgage and had to go to rehab for an illness for more than 2 months, they would take his house away. I know we have to live in our house the majority of the time as our main living location. Can they take his house away if he is ill and in the hospital or rehab for a period of time? Thank you
Why would you want your children to buy the house? Unless they are inheriting over 11 million dollars, they won't pay an inheritance tax.
Yes, they can take the house if you have to move out early.
Can the heir's just surrender the property? Avoiding a lot of paperwork.
That's what the reverse mortgage scammers are banking on.
If the heir wants to keep the house, they can pay off the reverse mortgage balance and take ownership, free and clear?
Even if they pay off the reverse mortgage, if the property was not deeded to them by the owner before the owner died, the heirs will need to do a probate case to transfer title to the property to the heirs.
@@vernitawilliams839 Bless you! Thanks for clearing that up.
House rich money poor I am. I have a trust and deeded property to son and daughter. God willing all goes well for them.
as to the Reverse Mortgage racket;...I keep on saying : shut Up Magnum!
My mother passed away and she had a reverse mortgage and family members were living with her, but she did not have a will, how long will we be able to stay in the house before we get evicted, none of the family members are able to refinance, and we are not gonna be able to sell the house, we are hoping to live here for six months until we can make arrangements to live elsewhere, please help, thank you
In most instances it will be 6 to 12 months before eviction proceedings begin on a reverse mortgage. You should speak with an attorney to see if there is any equity in the home. If there is equity, it may be worth it to do probate and sell the house so that family members can receive the equity. In some instances, an arrangement can be worked out such that the getting of equity can coincide with the move from the house. There are even some foreclosure cases where the mortgage company will pay the parties who live in the house to leave. Don't assume that there is nothing you can get out of this other than the demand to move. Talk to a local probate attorney to discuss your options. Are you in Florida?
@@vernitawilliams839 thank you very much for your help.
No i dont live in florida, thank you
This is my question too...family member is now on hospice somewhat suddenly...and my mother and I live in the home but I know we can't afford to keep it..we are in California and also hope to have 6-12 months to make our arrangements
Hello, my mom has a reverse mortgage on her home she currently lives in. I was thinking of buying it, I wanted to keep the property if something happens to her. I read somewhere if she sells the home now and the house appraise for less than what the reverse mortgage amount is currently, she can see it for such? If so, what happens to the remaining balance of the reverse mortgage?
Can a reverse mortgage go into foreclosure before the borrower dies
Knowing the bank people I think there is a clause in there somewhere.
😢😢😢😢 I mean it hurts my feelings if nothing else and it makes me feel the frauded and I just wrote above what I wrote and it makes me feel the frauded because my mom is so much work on the house and and and and spent a significant amount of money at Lowe's you know keeping it up and and getting it perfect and all of that and painted it and all of that stuff and of course you know I hope we can keep the house I'm praying but at the same time I'm also feeling bad about it and I think that yes you know but Dad hadn't had a traumatic brain injury and I didn't know all of this and you know to come in and have to deal with it I and on top of that have mine my beloved mother having died it's just it's just really overwhelming
When someone has a reverse mortgage and the person passes on.... if he/she had 5 adult children and no will.....how would that work...with that many children.....who would be in charge or would it have to go to probate. What if one of the grown children had a durable power of attorney.....can that person have the right to sell the home?
The durable power of attorney dies the moment the person who gave it dies. It is no longer operative. The family will need to go to court to have a personal representative appointed, even it there was a Will. It is in court that a personal representative or executor is appointed, either according to the state statute or what is in the Will. When there is a reverse mortgage, the mortgage company will typically commence foreclosure in 6 to 12 months if they are not sure what the family plans to do with the property. The family should open a probate case in court, appoint a personal representative through court proceedings and take steps to either buy or sell the property. This is especially important if there is any equity in the property. If there is no equity in the property, it may not be worth it to do probate if there are no other assets. It makes sense to check and see if there is any equity for the family to get.
I have a question. Do you have a email?
Email me at vcwoflsb@aol.com
Don't let Magnum pi steal your house/Steer clear of reverse mortgages ..
Reverse mortgage is a lose lose deal. Only idiots falls for it.
Reverse mortgages never end well. Stay Away !
I don't favor reverse mortgages either. I seldom see people happy with them once the borrower dies and it is often a lot of misunderstandings when it is time for that reverse mortgage to be repaid.
@@vernitawilliams839to me it’s about the elder. Teach your kids to get out and buy their own houses and how to invest. Leave them money from your IRA accounts and enough insurance to bury you and when you die the house can go too, because in reality , the elder didn’t pay on their mortgage the whole time they had the reverse mortgage loan. That’s the problem with todays society, people waiting on their parents or grand parents to die so they can get a free house. Sad… get your own house. Don’t hear nobody talking about that though.