REVERSE MORTGAGES, NEED ENLIGHTENMENT
I have a condo worth about $250,000.00 in S.W. Florida. I am ignorant
about reverse mortgages.
My limited knowledge is that one can get a certain percentage of your
home up front or a monthly payment over a period of time.
Should my house decline to half its current value during the life of
the reverse mortgage, who is responsible for difference?
What is my approx cost to obtain one?.
Should a hurricane demolish condo and costs are not covered, who is
liable?
If your house declines in value the bank is stuck with your reverse
mortgage. It is a no recourse loan.
If the condo is destroied by a hurricane the building would be the
responsibility of the condo association, the damage to the interior of
the building usually from the dry wall out and all the contents would
be your problem. This type of loss even in Florida would be covered by
a codo owners policy. If the condo building was destroied by an
uninsured loss like flood this would be the responsibility of the condo
association and your contents would be your problem.
In order to obtain a reverse mortgage the condo must be your primary
residence. If you leave it for any reason the property is sold and the
bank would take thier share and you would get the remainder. If the
condo was destroied by an uninusred loss the bank would be stuck but
only for the interior loss.
Condo Associations can not get a reverse mortgage only condo owners for
their personal condo units.
If you want a quote for a reverse mortgage send me an email and I will
send you an app as an attachment then you can fax or email it back to
me and I'll send the quote. All owners of the condo must be 62 years
old or older.