Posted by bdees on 8/13/09 1:39pm
Msg #299786

Reverse Morgage Loan

Does someone know why there are would be (2) Notes and (2) Morgages/Deed of Trust on a reverse morgage loan? Thanks

Reply by PAW on 8/13/09 1:41pm
Msg #299787

This is RM 101. But, just so you know, the "first" note/mortgage is in favor of the lender. The "second" is in favor of the Secretary of HUD.

Reply by Keystone_SA on 8/13/09 1:44pm
Msg #299789

One is for Lender; and one is for HUD.

Reply by Ocean Pacific Notary Services, Inc. on 8/13/09 1:50pm
Msg #299794

Are you sure? Is it not two loans - LOL. I have had notaries try to tell me that two notes and two mortgages mean two loans.

Thank you Paul for the RM101 lesson - same thing I tell our staff. Now try to explain the 5112 year call on the loan due date with the several 100's thousands of dollars on lien - I have tried to simplify my explanation

Reply by David Rubalcava on 8/13/09 7:34pm
Msg #299882

Correct - It is only one loan.

The due date and the loan amount on the deed (700K+) is an established number by HUD. It is a no payment, neg. am. loan so HUD has to put a date and a number. They loan will never get to those terms but they have to have "something" there so as to not leave it blank.

Hope that helps.

Reply by bdees on 8/14/09 1:06pm
Msg #300024

Thank you All for help.