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Are there any Reverse Mortgage Experts in the House?
invite response
2009 Sep 7, 2:03am 1,580 views 1 comment
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elliemae
2009 Sep 7, 3:37am
elliemae
2009 Sep 7, 3:37am
I don't believe so - but I can't find anything about this subject. I'm guessing (stress on the guessing) that, if a loan amount exceeds the value the borrower is responsible. If the lender promised to lend more than the property is worth, the lender is responsible.
When the owner dies, the lender has a very expensive neglible asset.
But I'd read the fine print of the loan papers.
My mother-in-law obtained a reverse mortgage at the height of the market here in Florida. According to the information posted on our County Clerk's website, the amount is far more than her home was worth at the time the mortgage was taken and is at least four times the current value of the home. Does negative equity have an impact on a reverse mortgage?
#housing