Posted by HisHughness on 10/26/04 4:09pm
Msg #10527

A first for me

Had a first last night. Went to a signing for a reverse mortgage (the folks' home was in foreclosure, and the RM was to bail it out). The wife got so upset, she became ill, an ambulance had to be called, and she wound up in the hospital. No signing.

Reply by Ted_MI on 10/26/04 4:59pm
Msg #10528

Re: there are various firsts

Hugh,

When I was practicing law, we worked with a number of business brokers and handled a lot of conveyances of businesses. As you are probably aware, the last things the owners do prior to the conveyance is the inventory. Anyway this husband and wife, who owned I believe a donut shop, were up late at night doing the inventory, and they hadn't been getting along for some time and all of a sudden the wife just blew him away. The closing was at nine the next morning. The purchasers and everybody else were there, but obviously there was no one there empowered to convey the business (as the wife had been hauled off to jail). So finally she signed some sort of power of attorney, and the business was indeed transferred.

I was not personally involved in this, as it was before my time, but I have all this on very good authority.

Reply by HisHughness on 10/26/04 10:50pm
Msg #10541

Re: there are various firsts

My law partner once had a couple come in for a divorce. Seems they had been married before, and decided to have a go at it again. On the way home from the second wedding, they got into a fight and split, before they ever made it to the threshold for the groom to tote the bride over. I guess if you're going to get a divorce, that's the time to do it.

Reply by PAW Notary Services on 10/26/04 9:03pm
Msg #10537

I don't think I understand. You said that you went to a signing for a reverse mortgage, but the home was in foreclosure. From what I've read and have been told, in order to qualify for a reverse mortgage, the home should be paid in full (normal case), or have a mortgage that can be paid from equity. This would preclude foreclosure, would it not? If not, then the borrowers wouldn't qualify for a RM unless the RM was paying off the current mortgage. Am I missing something?

Reply by HisHughness on 10/26/04 10:46pm
Msg #10540

I dunno, Paul. We never opened up the closing packet before Ms. Borrower got sick. The daughter indicated they had taken out a home equity loan for repairs, there was a default, the loan was in foreclosure, and the reverse mortgage was to pay off the HEL. Made sense to me.

Reply by Art_MD on 11/9/04 2:33pm
Msg #11065

A bit late on a reply.

Say there is a 200,000 mortgage, equity is 150,000, payments of 1,200 a month. If the people can't make the 1,200 a month payment, there could be a forclosure.

What the reverse mortgage would do is allow the people to take out 50,000, pay the outstanding mortgage and then receive the reverse mortgage payments based on the remaining equity. There are many ways to take cash out with a reverse mortgage, pay off existing mortgage, get line of credit etc.