Posted by Grammyzoom on 4/6/10 10:18am
Msg #330495

Reverse Mortgage purchases

I spoke to an LO last night from B of A while doing a RM and she was telling me about Reverse Mortgage purchases. B of A started doing these and I had never heard of them.

Has anyone ever handled them and if so, exactly how do they work?

Reply by Jim/AL on 4/6/10 10:41am
Msg #330496

Yes, I have done one here in a local RE office. Not sure what your question is though...works the same as a normal HECM, I would assume they have to have some upfront $$ and that is about it, they get a home that is paid for and they have no responsibility to repay the debt.

Maybe Shoshana can elaborate.

Reply by Linda_H/FL on 4/6/10 10:45am
Msg #330499

Yep...same as any RM but without rescission

maybe add some additional disclosures and paperwork but should work the same...

Reply by Shoshana/AZ on 4/6/10 11:06am
Msg #330501

I have not done one. However, I presume that the DP would be the same as the amount of equity they would need to have in order to refi into a RM. Of course, the older they are, the less money they would have to put into it.

Reply by Sylvia_FL on 4/6/10 10:46am
Msg #330500

Never handles one but this is some info on them

http://www.reversemortgageadviser.com/blog/reverse-mortgages/reverse-mortgage-purchase-rule-helps-seniors-purchase-homes-easily/

Reply by Grammyzoom on 4/6/10 11:14am
Msg #330502

I was a little confused about the terms of the purchase. I believe she told me that a 50% down was required and the amount of the loan would be based on the age as in regular RM loans.

I have never done one and now that B of A has begun doing them I was just curious and hopeful we might see some of these.

I will check out the link Sylvia, thank you.

Reply by Linda_H/FL on 4/6/10 11:20am
Msg #330503

Wow...50% down on a purchase?? Jeez..

hope she had some other property she was selling on at the same time to have that - or she's independently wealthy...

Reply by jba/fl on 4/6/10 11:39am
Msg #330507

Re: Wow...50% down on a purchase?? Jeez..

The point is to have a house, sell it, roll inot RM purchase then be debt free. The 50% down presumably comes from sale of existing home.

Reply by EastTxNotary on 4/6/10 1:02pm
Msg #330513

It's my understanding that many people doing Reverse Mortgage purchases are "downsizing" so that they have some money from the bigger house they've sold or are selling. As usual, Texas is different, can't do RM Purchases here.

Reply by Linda_H/FL on 4/6/10 1:42pm
Msg #330515

"Texas is different, can't do RM Purchases here."

Seriously? Why not??

Reply by BrendaTx on 4/6/10 6:05pm
Msg #330540

That's right...but, sometimes borrowers go ahead

and buy the house and then do an RM later.

I don't know either...but I'll bet Dot (EastTx) does. She's the smartest Tx NSA I know about all KINDS of loan minutia.

Reply by EastTxNotary on 4/7/10 7:21pm
Msg #330698

Texas lawmakers wrote that HECM's in Texas could be used for refi purposes only. We must have an amendment to the state constitution to allow for HECM purchases. It's on the agenda for 2011, so the earliest we could have it is 2012.