Posted by DellaCa on 6/5/07 11:06am
Msg #193680
Reverse Mortgage change??
I was trained some time back that both parties in the had to be at least 62 to qualify for a RM but now I read this...
Not everyone can get a reverse mortgage. You have to be at least 62 years old and your home must be nearly paid off or owned outright. If you are 64 and your spouse is 59 and you are both joint owners in the home, the one who is 64 has to assume sole ownership.
I take it then the borrowers can be married and one under 64 ( 62 I thought) but has to take their name off title, then can qualify.
Anyone know more about this ??I am not asking for legal advice just what you may have learned along the way.
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Reply by cntrlcalntry on 6/5/07 11:22am
Msg #193681
No change. I think they are just saying if one person is not 62 they just grant deed to the one who is. The magical number is still 62.
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Reply by DellaCa on 6/5/07 11:27am
Msg #193682
I get that also but when they first came out I was told both had to be at least 62 so this would indicate a change was made to the rules.
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Reply by PAW on 6/5/07 8:17pm
Msg #193780
Property owners must be 62 or older
To get around the "both spouses" problem, the younger spouse is removed from ownership (title) to satisfy the requirement. I've seen a few done that way.
As HUD states in their handbook," To be eligible for a HUD reverse mortgage, HUD's Federal Housing Administration (FHA) requires that the borrower is a homeowner, 62 years of age or older; own your home outright, or have a low mortgage balance that can be paid off at the closing with proceeds from the reverse loan; and must live in the home." Notice the first condition that the borrower be a homeowner. Thus, a non-owner, even though a spouse, may be younger than 62.
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Reply by dickb/wi on 6/5/07 1:14pm
Msg #193713
don't know about other states but not in wi.......
wi is a marital property state [which is some what different than a comunity property state] and whether spouse is on title or not spouse would have to be on mortgage or no forclosure could take place....if it did the mortgagee would own the property with the spouse.....it would be almost impossible to petition the court for a partition sale as it is the spouses homestead..i believe that wi is the only state that is a marital property state of its kind.......a spouse does not have to be on title to own a 50% interest in the property....the law is to lengthy to explain here but there are a lot of factors that come in to play......
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Reply by PAW on 6/5/07 8:22pm
Msg #193782
Re: don't know about other states but not in wi.......
Florida is similar in that the Homestead Act ensures spouses and children have an "interest" in the homestead, in its entirety, whether or not the spouse is on title as a property "owner". It gets very interesting here, since the Homestead provisions are a Constitutional amendment which supersedes all statutes. So, even if a spouse is not on title and not a property owner, per se, if the property is the spouse's homestead and filed as such, then there may be a mortgage issue.
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Reply by Linda_H/FL on 6/5/07 11:32am
Msg #193684
Re: FWIW - I got a solicitation e-mail today
that stated, in part, "...As of last week HUD has changed the rules regarding Reverse Mortgages."... hmmmm
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Reply by DellaCa on 6/5/07 11:38am
Msg #193687
Re: No info. on what changes? n/m
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Reply by Linda_H/FL on 6/5/07 11:50am
Msg #193689
Re: No info. on what changes?
Nope. Nothing other than, in the middle of the message, they won't require reverse mortgage closers to be W2 employees - they'll use independent contractors. I'm just figuring if that changed then maybe other HUD guidelines have changed....need to find it.
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Reply by Sylvia_FL on 6/5/07 12:03pm
Msg #193692
Re: No info. on what changes?
I believe one of the changes is that they can now have a fixed rate reverse mortgage.
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Reply by Michael Landrove on 6/5/07 12:20pm
Msg #193694
Re: No info. on what changes?
ALong with everything changes are happening in all fields of mortgage financing. As what I've heard comes through my office, the RM hasn't done much at all really. Subprime, well that is another story.
Also, thanks for the insight with the company, I sure will not do business with them at all with NSF checks flaoting around.
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Reply by Michael Landrove on 6/5/07 12:22pm
Msg #193696
Re: No info. on what changes?
Disregard the last part haha that was meant for another post.  Sorry
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Reply by DellaCa on 6/5/07 12:25pm
Msg #193698
Re: No info. on what changes?
I just spoke with 1 Reverse mortgage and he said they both either have to be 62 or one can be taken off the title and do a reverse on the one remaining on title. Thanks
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Reply by MsRobboPA on 6/5/07 5:51pm
Msg #193769
Re: No info. on what changes?
Any reverse that I've ever done both borrowers were over 62 and I assumed the same as you Della.
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