One question that always seems to surface when talking about the Reverse Mortgage is: “What’s the catch?” The answer is: very little. As a borrower, your name will remain on the title, which means that you still maintain homeownership. You can sell the home anytime you choose and can still leave it to your heirs.
However, it should be made clear that no one, not even the government, is giving away free money. This is a program where you receive the money now and the money is paid back after you no longer live in the home. Therefore, you can defer payments and you can never be forced to leave your home. In most cases, the estate sells the house and splits up the proceeds. This will happen whether you do the Reverse Mortgage or not.
It is true that the equity in your home will be less because you are using the value that has been building over the years. However, you or your estate is only responsible for the money you borrowed up to the value of your home. Repayment of the Reverse Mortgage cannot exceed the value of the property and you can never be forced to sell or move from your home as long as you continue to live there.
Do you need answers to your Reverse Mortgage questions? Talk one-on-one with a Reverse Mortgage Expert. Send an email to kmcvearry@academyloans.com or call toll-free 1-866-738-6125. We're here to listen, answer questions and help you make the right decisions.
--Confused about 2nd Trust Deed & Note on Reverse Mortgage--
I'm confused as to where in the security instruments is my assurance that I don't actually owe BOTH liens that are going to be recorded against my property. I see the verbiage that says the second is to cover the HUD Secretary if he makes any payments to me, but I'm getting a lump sum and HUD will never make any payments to me -- so why do they need to record a second against my property when that doesn't apply? Where does it say in the official closing documents, or my copy of the application, that thepurpose of the second is to give HUD a way to collect on my loan if my lender goes defunct?--which is the only reason I can see for an additional deed and note in my particular case. I want to read it chapter and verse in what I'm signing, not just get a paraphrased verbal explanation from somebody. Trusting the mortgage rep's word is one of the things that got America into the whole subprime mess, with all of the ignorant sheep who signed without reading their docs, and just took the loan officer's word for it, then claimed they were bamboozled. I'm not letting myself get bamboozled, so I want to read in my docs where it says both notes will never actually come due together, and it's only one or the other, or part of one and part of the other. Can anyone tell me where to find this in the note or deed? I can't even find it on the HUD website. Thanks. --Mrs. Orrell
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