Hecm Reverse Mortgage
Can anyone help me answer this question on Reserve mortages:
Has anyone out there had the experience of using a reverse mortgage to
pay for care? Wondering what anyone may have experienced.
Any view as well as any comments???
Actually banks don't make reverse mortgages, the Federal government
does. A bank may act as the sales agent, but its strictly a government
program as they lose money on most of them. You get to live in your
house as long as you keep it up and pay the taxes, regardless of how
much you may end up owing against the house. At the end (death or
leaving the house)the house is the only collateral for the loan and no
other assets or money are paid back if you owe more than the house is
worth.
It can let you use the equity to pay for care at home, versus selling
the house to move into a facility. Since you can't take the house with
you when you go, its not that bad an idea for some situations.
Counselling is mandatory for your protection. You can preview how much
you can get from a reverse mortgage at www. reverse.org and follow the
links to the reverse mortgage calculator.
However,there are several types of reverse mortgages
offered by various government agencies AND commercial ventures :
* the US federally insured Home Equity Conversion Mortgage (HECM),
administered by the Department of Housing and Urban Development (HUD)
* single-purpose reverse mortgages, usually offered by state or
local government agencies for a specific reason
* proprietary reverse mortgages, offered by banks, mortgage
companies, and other private lenders and backed by the companies that
develop them.