Reverse Mortgages

An extended relative is applying for a reverse mortgage (its his last resort, I already told him not to do it but he wont listen) and his ex wife was given some papers to sign as part of the HECM Counselling.

His ex wife is technically separated from him (no formal divorce decree) and she refuses to sign the papers. The administrator of the mortgage company (some attorneys in CA) are offering her $6,000 to contribute toward her legal fees for her to sign these documents ASAP.

Wondering if anyone here is knowledgable about reverse mortgages or can put me in contact with someone (either you or DH) who knows how these mortgages are packaged? The wife is basically going crazy wondering if she should sign these docs and I have no idea what to tell her..

Thanks for any help!!

Re: Reverse Mortgages

Unfortunately I don't have any experience with this, but I know someone who deals with reverse mortgages all the time and he knows a lot about them. He works for the "The Money Source", located in Melville. You can contact him with questions and I'm sure he can help you. His name is Sean and the main number is (631) 454-1920.
Good luck!

Message edited 1/27/2012 4:27:56 PM.

Re: Reverse Mortgages

My parents did it and I was in on the meeting. I think it is a great idea if it is your last resort. My mother was not moving, but yet they couldn't pay the taxes being both retired with no pensions. The interest rate is ridiculously low (under 3%). My father has since passed and she has no desire to move out at 71 years of age and start over. My siblings and I hope she lives there forever. If she owes more than the house is worth, then she owes them nothing (they just take the house and take the loss). Otherwise she pays the reverse mortgage back and keeps whatever profit is left.

It's not for everyone, but it worked for our family. Good Luck

Re: Reverse Mortgages

Be SURE you read ALL the fine print, and, that you completely understand the terms - have them spelled out to you in plain English. Pay a lawyer to check to be sure it is as you have been told.

Some reverse mortgages are fine, others are not.

My mother signed a Toxic one without understanding the terms. I'm having to deal with it now and it's a nightmare.