Posted by CarolynCO on 11/2/04 1:49pm
Msg #10775

Reverse Mortgage

I've never done a reverse mortgage. Yesterday I got a call for one, and although I was unavailable for the signing, I just wanted to get a heads up on differences or things that need attention for next time. Thanks.

Reply by BrendaTX on 11/2/04 3:23pm
Msg #10787

Carolyn,

It has been awhile since I did one, but if I recall correctly the difference is that you will see two notes and two "Affidavits and Agreements" common to Home equity loans. There is a deed of trust, but sometimes it says "Home Equity Conversion" on it.

In two of mine they came from California and the HUD-1 information was there, but not in the form I am accustom to seeing.

As I understand the RevMort loans--most of which I got from reading at HUD.gov and reverse.org:

There are different types of revmorts. The "good ones" I think, are the ones FHA backs: the HECM (home equity conversion mortgage) .

Where there is an FHA backed HECM there has been lengthy counseling by the lender, or a counselor, and the borrower is very well educated on what he/she is doing. In fact, they just want you to sign the darn things and move along so they can take a nap, or go out to the square dance/piano bar/whatever...just get out of their way.

You can find out if the lender is approved for making FHA HECM loans by looking it up on HUD.gov.

The mortgage pays the borrower a monthly amount and your TIL and other statements about APR% type things will look different.

And, other than that, it's pretty much the same.

I will look on my hard drive. At one time I found some forms for the reverse mortgage and kept a copy so I could look them over. If I find them, I will send you a copy.

Hope this helps.

Reply by CarolynCO on 11/2/04 4:59pm
Msg #10796

Thanks a brunch Brenda for the info. I've read info on them while researching options for my mother-in-law's situation, but if you do have sample forms, I'd love to see them -- since I'm am hands on, see it-do it person. I was in the middle of doing three things yesterday when I got the call. I think he said I was the eighth notary he had contacted and the papers needed to be signed by 5:00. I don't know why 5:00 was the witching hour. It just seemed odd that he was having problems getting a signing agent, and since it was the 1st day of the month, why the specific time deadline? -- Since I knew that I wasn't available, I didn't ask the specific questions I normally do, but have a suspicion that they may have been looking for someone to back date the docs, but I don't know that for sure.

Reply by HisHughness on 11/2/04 5:40pm
Msg #10801

There'll be a HUD DOT and obligation instrument and a lender DOT and obligation instrument. In fact, there may be two copies of each.