Posted by Shoshana/AZ on 8/8/13 10:37am
Msg #479652
New reverse mortgage rules are coming out in a week or so.
Then people can decide what they want to do. Most likely they will be lowering the amount of principal that people can get out. So, if anybody here is thinking of this, they need to do it very soon.
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Reply by Linda_H/FL on 8/8/13 10:43am
Msg #479654
Should have done it by 4/1 when the MIP guidelines changed
borrowers doing RM's after 4/1 were realizing thousands of dollars in additional fees due to the new guidelines and increased interest rates.
Glad we got ours done.
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Reply by Shoshana/AZ on 8/8/13 10:46am
Msg #479655
Re: Should have done it by 4/1 when the MIP guidelines changed
I didn't turn 62 until 4/29. Out of my control! We have to do it now because my husband did it last Oct. I need to get on title now.
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Reply by Linda_H/FL on 8/8/13 10:49am
Msg #479658
Ah..but at least you got it last October...
so you've realized the savings.
Can't you go back on title without re-doing the RM?
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Reply by Shoshana/AZ on 8/8/13 11:41am
Msg #479678
Re: Ah..but at least you got it last October...
Nope. it has to be fully refinaced. We realized that going in to it. At the time, there was not even a hint that the rules were going to change on 4/1. The problem is that people are taking the money and spending it with out much thought. Then, because their taxes and insurance are not escrowed, they are defaulting because they have no money to pay the T&I. It doesn't take into account folks like my husband and I who are investing the principal to make more money.
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Reply by Bear900/CA on 8/8/13 4:06pm
Msg #479716
Not necessarily..but wait until the end of August
Yes, there will be less money due to "set-asides" to pay escrows, and yes, the interest rates will be higher BUT, part of the new law is that spouses not on the loan because they are not 62 cannot be evicted.
We're waiting for the FHA mortgagee letter the end of month to spell this out. You may not have to refinance unless they stipulate that it will be for new loans going forward.
http://www.reversefocus.com/reverse-mortgage-news/hecm-reform-senate-bill-passes
For those looking at doing this the first time, think Lines of Credit rather then lump sum payments. You only pay interest for the amount used and the LOC will grow over time.
Best!
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Reply by Shoshana/AZ on 8/8/13 4:36pm
Msg #479726
Re: Not necessarily..but wait until the end of August
Yes, Bear, I am planning to wait until the new regs come out. So, if spouses cannot be evicted, what would the plan be? My concern would be that the surviving spouse not on the loan would get screwed. I like the lump sum, because I can invest it. I do know that most people just take the money and squander it. I waould preserve the principal. Are you an LO?
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Reply by Bear900/CA on 8/8/13 5:36pm
Msg #479733
Yeahhh....
I am part of the HECM world.
<My concern would be that the surviving spouse not on the loan would get screwed. >
Naw, that's what part of the new law is about. Waiting for the particulars. Did you watch the video from the link? The space looks blank for non-members but click on it anywho.
Ben
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Reply by Bear900/CA on 8/8/13 5:53pm
Msg #479736
'nother clarification
Yes, it may be that the spouse will need to be on the note, but can be under 62. So you may need to refinance, I'm not sure. It will be interesting to see how FHA deals with all the one spouse loans.
I have been awake since 3 am and probably should not be posting today. Sorry for some confusion!
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Reply by MW/VA on 8/8/13 4:04pm
Msg #479715
Yes, I'd heard there was new rules & regs. for RM's coming.
The LO's aren't pleased, because it's going to be more difficult for them to get these done now.
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Reply by Bear900/CA on 8/8/13 4:12pm
Msg #479720
Like any other loan where you check credit and debt ratios
The credit check is mainly for payment history. I don't feel that a few lumps will be a disqualifier, but we've yet to see.
Keep in mind that medical write-offs up to $2,500 on credit reports cannot be held against you. The older we get...the more that's likely.
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Reply by Bear900/CA on 8/8/13 4:51pm
Msg #479729
Correction on Medical Debt Relief Act
It died in Congress. I stopped keeping track of this. Sorry. Pay your bills!
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Reply by BossLadyMD on 8/9/13 11:08am
Msg #479783
I've only done 2 this year, RM really dried up in Maryland n/m
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