Posted by BeckyNC on 10/2/07 6:27pm
Msg #214337

Reverse Mortgage Question - Long and partially OT

I'm hoping that someone who has more experience with reverse mortgages than I do can point me in the right direction. My parents are thinking about doing a reverse mortgage; they are in Indiana, so talking long distance is not helping. Mom has Parkinsons and is not in great health, and Dad is worried about their funds running out sooner than they thought.

They have looked at Freedom Financial (IndyMac - or as Dad says, "the James Garner people" and are starting to look at Senior Lending Network ("the Robert Wagner people". They are getting some conflicting information, and I can't help with the questions Dad is asking.

IndyMac has told my folks that they can't (or won't) work with them because the retirement condo community they are in is still building new units. SLN has said that's not right. Does anyone know if this is a lender thing or a HUD thing?

My other question concerns the folks they are talking to. They have an appointment with Greenpath, which is supposed to be one of the independent counseling services. When I google, all I find (at least on the first page) is about debt consolidation, which doesn't feel right.

I've read Brenda/TX's book and the AARP, but these are the types of questions that just aren't answered. If you have any related info from people you have signed about either of the RM companies, or the counseling services, I'd really like to hear it.

Reply by LisaWI on 10/2/07 6:44pm
Msg #214341

Becky, what a thoughtful daughter you are to help your parents find the answers they need. I think PAW might be a good person to help you and hopefully he will chime in here.

Reply by BrendaTx on 10/2/07 6:58pm
Msg #214344

That's an interesting question and not one that I can answer for you. My book isn't the end all answer book, it just tells a notary what they need to know from a practical standpoint: after the loan is approved.

Paul of PawNotary.com is a broker as well as a notary. He may have that answer.

The only thing I can think of is that the new units may be a piece of the property value puzzle. Either one, FF or SLN would provide the same values in the loan in my experience. Keep digging. Maybe Paul will give an answer...or try writing him directly.

Reply by Sylvia_FL on 10/2/07 7:05pm
Msg #214346

Popsie is working tonight. I'll let him know he is needed

Reply by PAW on 10/2/07 8:36pm
Msg #214361

I don't believe it's a "HUD" thing, but surely a lender requirement. Some lenders and underwriters want a certain ratio of individually owned units of the total number, plus some percentage of the total number of units must be occupied (i.e., not for sale or lease). Additionally, there may be restrictions on whether it is a high-rise or low-rise structure. Finally, there is the issue of Condo Association ownership. Many lenders require the association to be fully owned by the residents (not the developer) and often for a full year.

Reply by NCLisa on 10/2/07 7:41pm
Msg #214352

I prefer Wells Fargo's Reverse Mortgage Program.

Reply by Therese on 10/2/07 7:52pm
Msg #214354

Becky I have sent you a wonderful contact with Wells Fargo. She is great
very patient and kind. Good Luck

Reply by Becca_FL on 10/2/07 7:52pm
Msg #214355

I don't have an answer for you either, Becky, but you might have your parental units check out Wells Fargo and Vertical Lend too. IME, the two I have recommended do an excellent job educating the HECM consumer.

Reply by ReneeK_MI on 10/3/07 4:33am
Msg #214401

Also a HUD requirement

Here's a snippit from Hud/HECM Appraisal requirements:

"C.Eligible condominiums must be part of a HUD-approved condominium
project (see HUD Handbook 4265.1). Each local HUD office has a
list of the condominium projects approved within its jurisdiction
and can provide instructions on obtaining HUD approval of a
condominium project.

D.Units in cooperative housing developments are not eligible."

If the property doesn't meet HUD approval, there's still the possibility that it could meet approval for a non-Hud insured product. ALSO please note - sometimes the HUD list of approved properties isn't up to date, and a good L.O. will know how to both figure that out, and have the property's status updated for approval. It can be quite a headache, but it's just paper ... a lot of paper.

* Greenpath IS on the HUD approved list of counselors for Indiana, btw. Instead of Google, check directly with HUD.

Reply by BeckyNC on 10/3/07 5:34am
Msg #214402

Re: Also a HUD requirement

Thanks everybody for the replies and education. I appreciate all your comments and recommendations, and will be passing the information along. Hopefully, we'll be able to get what Mom and Dad need with a minimum of confusion and stress.

Reply by BrendaTx on 10/3/07 6:41am
Msg #214404

Re: Also a HUD requirement - perfect Renee' -

it helps if you read the manuals, doesn't it? lol.

Great resource information.