Posted by EC-Notary-CA on 6/27/05 9:17pm
Msg #48330

Reverse Mortgage Package

Does anybody know about reverse mortgage packages, I got a call last week offering a reverse mortgage signing, but I did not know what that was, I was honest enough to tell them so they turned me down.

Reply by BLE on 6/27/05 9:19pm
Msg #48331

I've done for so far. All were pretty straight forward. I find few differences.

Reply by BLe on 6/27/05 9:21pm
Msg #48334

that's supposed to say that I've done four (4)! EOM burn out......................

Reply by EC-Notary-CA on 6/27/05 9:21pm
Msg #48335

Would please explain?

Reply by BLE on 6/27/05 9:25pm
Msg #48337

The first one I did was pretty much a HELOC. The borrower was using his home as a line of credit. He planned to take out lump sums for such as taxes and new roof. He would only have interest charged on the amount taken. I did 2 where the borrowers were receiving a monthly check. Both required the borrowers go through interviews and counseling and such. Other than that everything from DOT to note to signature affs were SOP.

Reply by ec-nOTARY-ca on 6/27/05 9:28pm
Msg #48339

Are they pretty long packages?

Reply by BLE on 6/27/05 9:31pm
Msg #48340

It depends. The line of credit package seems like it was longer than the others from what I remember. I had to notarize all of the usual pages for all 4. These are loans for a govt. program. Not everyone can get one.

Reply by Nancy in Florida on 6/27/05 9:52pm
Msg #48344

Reverse Mortgages are for the elderly. FHA has a program. It does exactly what it states, instead of the mortgagor paying a mortgage payment every month they can get a check each month using the equity in their home. There is a certain amount they can qualify for and it depends on their age, the older they are the more equity they can take out. They can take the money in one lump sum, get a check for certain amount each month or as a HELOC, using the money when the need it. They must take a counseling course with their heirs so the loan is explained to them in detail and to be sure it is in their best interest. The loan is not paid back until they leave their home either at the time of their death or if the go into a nursing home etc. At that time the house is sold and the loan paid off and if there is any extra proceeds from the sale it would go to the homeowner or their heirs if they are no longer alive.

When I worked in Mortgage banking I got the most gratification from doing Reverse Mortgage loans, myself and 3 other co-workers were the only ones in our company that worked with these loans. One origninated, processed, underwrote and I closed them. They were the most bittersweet loans, I remember a 65 yo man crying as he signed the papers because he was so poor he couldn't pay for garbage pick up and another where a 99 yo women came into the branch to sign her papers (back when I did these loans in the early 90's the packages were hugh, like 250 pages) she sat there and signed each and every document herself (many use POA's) it took three hours but she was so much fun and fisty too. I have gotten letters from the heirs of the reverse borrowers, telling us that this loan was the best thing that every happened to their loved one and that their last year was wonderful because the could live comfortably with the knowledge that they didn't have any financial concerns.

I know I gave you much more info than you requested but the topic got me strolling down memory lane and how much I enjoyed these loans..

Reply by hcampersFL on 6/27/05 11:07pm
Msg #48360

Nancy, Thank you for such a clear explantion. It made it very easy to understand the process in a snapshot. It also made it seem a lot less intimidateing (sp?). Thanks again.
b.

Reply by Sherri_IN on 6/27/05 10:03pm
Msg #48346

If you go to www.aarp.org/money/revmort/ there is a free guide to reverse mortgages that you can download and look through. It really explains the different type of loan programs there are and how they work.

I have closed a few and have found them very pleasant to close. The consumer is usually very well informed and at all of the closings I did the Loan officer was there to help answer any question.

Reply by BrendaTX on 6/28/05 9:44am
Msg #48426

I find these to be full of good surprises more than bad.

Yesterday, I did a rev mort where the couple had built an oasis of beauty inside of what was once an old camphouse near a recreation lake. Talk about the sow's ear recreated into the silk purse...this was a Texas camphouse turned into quite the tasteful and stylish cottage. It was quite breathtaking inside. Come to find out, Mr. was an abstractor and had his fingers still stuck tightly into the title business. He was great...both of them were.

Then there was a wonderful Jewish woman in a small Texas town who had much to tell about her history there in a town settled primarily by Germans. Her taste in furnishings was so classic 1950's (one of my favorite styles) and extremely elegant.

There's the one who tells me how they fought the IRS and won by persistance.

And, the one who drove a postal truck carrying a quarter of a million in cash from Dow Chemical's payroll back in the 60's...since I was born in the Dow Hospital and raised on food purchased by a Dow paycheck, that was very interesting.

I posted last week about the author who gave me a book he wrote.

And then, there's that one who just wants me to hurry up and get out of the way because they are going to miss Wheel of Fortune...or square dancing...or dominoes.

It may take a little longer with rev morts because of the dual signing of notes and DOTs, but it's all what you make of it on the way through your day.