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					    Does Your Parent or
Grandparent Fully Understand
  Reverse Mortgage Loan?
Lots of seniors have probably heard about the reverse mortgage,
which is said to be the solution for many financial problems. In
reverse mortgage, the seniors do not have to pay the loan and
the lender will just have to wait for them to die or leave their
house. However, most lenders do not publicize the other
obligations the seniors could get if they sign for a reverse
mortgage.

Consequences
Before your parents or grandparents sign up for a reverse
mortgage loan, make sure that they are aware that the house
will no longer be retrievable unless they pay the loan. While
there is no need to worry about the house since the seniors will
be allowed to stay in the house until their death, the borrower
needs to ensure that the amount to be loaned will be enough to
cover for future expenses.
You surely do not want for your parent or grandparent to use
their house for a mortgage in a loan that would hardly cover half
of their financial problem.

In addition, there are many cases wherein the borrower is not
aware that the property taxes, home insurance and
homeowners’ association fees still need to be paid. The
borrower will only get himself into bigger financial trouble if he
will be behind the payments.

The borrower cannot also let the home be in poor condition.
Even leaky roofs can be a basis for calling the loan off. Cleaning
and maintaining of the house will still be on the borrower’s
obligation.
Alternatives; Other Options

Reverse mortgage loans are the least loan you should get. It is a
loan for the most desperate and people who no longer have any
choice. Here are some other options that you can consider
before going for a reverse mortgage loan. First, there are
monetary assistance programs. They can be for health
expenditures or for electric and phone bills. There are also state
property tax postponement programs. If you will look deeper,
you will notice that most of these programs are offered by the
government to help the financially troubled seniors.
Another option is to postpone getting the loan until your parent
or grandparent is older. Have two seniors with one older than
the other but both have the same house (same value) to apply
for a reverse mortgage loan. You will find out that lenders will be
willing to lend higher amount to the older senior.

Getting Reverse Mortgage Loan
If pension and other monetary assistance programs won’t work
for your parent or grandparent then a reverse mortgage loan
could solve or ease the problem. Here are some things to keep
in mind when getting the said loan.
• First, make sure that you know and completely understand
  what you are signing. Read the terms and conditions before
  you sign. If the loan cannot serve the purpose, look for other
  lenders.

• Second, think of how you want to get the fund or the money.
  Lenders could give it as a lump sum or in a monthly basis.


http://protection-insurance.org/reverse-mortgage/

				
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