Posted by christi_soca on 6/6/05 10:26pm
Msg #42833

reverse mortages

I don't know much about these. Once you're in one is it possible to get out? I have a friend that has been in one for a few years. Prices have gone way up in our area and I know her place would appraise for much more now? just wondering how this works, and no I am not notarizing anything for her or doing any type of business with her. just curious tia

Reply by Shannon on 6/6/05 11:37pm
Msg #42847

Yes they can! Refi or sell.

Reply by Ted Lerchen on 6/7/05 7:30am
Msg #42889

Christi,

From my perspective, all your friend is doing is drawing down on what is presumably substantial equity. It's not like your friend sold her residence and now would be suffering seller's remorse. I believe her equity would go up, given the rise in housing prices.

As far as getting out of one, don't know about that.

I think the major impact of reverse mortgages is that they reduce the estate one would leave to their heirs.

Reply by PAW_Fl on 6/7/05 9:18am
Msg #42901

There are three ways (basically the same) in which a reverse mortgage can be terminated and satisfied:

Death of the "borrowers", where the estate is settled and the proceeds of the settlement are returned to the lender in the amount of what's been paid out.

Sale of the property (even if it's an estate sale), where the proceeds of the sale are returned to the lender to payback what has been paid out.

Simply paying back all funds, costs and fees associated with the contract.

Reply by christi/socal on 6/7/05 10:26pm
Msg #43055

Thanks for the info. :-) n/m