Posted by LatteLady/NV on 10/8/13 7:20pm
Msg #487434

Reverse Purchase Signing

I am filling out a new vendor package with a company and under Signing Types & Fees one of the options is Reverse Purchase Signing. Can someone tell me what that is? I've never done one before.

Reply by MW/VA on 10/8/13 7:28pm
Msg #487436

I can only assume they're referring to a Purchase w/Reverse Mortgage. I've only ever done one of those, and my memory is telling me it wasn't much different that a standard Reverse Mortgage. It would be obvious that the signers are bringing money to the table, though, instead of paying off existing mortgage or getting a disbursement from their equity.

Reply by Linda_H/FL on 10/8/13 7:40pm
Msg #487442

Exactly right, Marilynn...and no rescission

Although they may NOT be bringing money to the table - they may be getting enough out to cover it...just like any other purchase loan

Reply by MW/VA on 10/8/13 7:47pm
Msg #487445

I was just thinking that since limits of RM's are about 60%

of the property value, the rest would have to come from somewhere. I suppose they could make out on a foreclosure though, if the purchase price is far below the appraised value.

Reply by JanetK_CA on 10/9/13 2:54am
Msg #487474

They also could be downsizing. n/m