What effect has the Home Mortgage Crisis had on “Reverse Mortgages”?
Reverse Mortgagess have been advertised aggressively for some months now, using different Stars as Spokespersons. At one time, I gave some consideration and chose not to obtain one. How has the current conditions affected those who do have one on their property?
mortgages
Because of the decline in values, reverse mortgages may be in the same shape as those that are upside down in the loans.
I am an appraiser, and I don’t advise anyone to take a reverse mortgage.
These companies are now able to “buy” homes at historic lows . . . on credit . . . so I think the crisis is a boon for this type of company
None what so ever. Since the homeowner is receiving money they are not caught up in the interest squeeze.
not at all; instead of the owner getting a one lump payment, they
are getting monthly payments and thus, not affecting the lender.
While their property likely dropped in value the last 2 yrs, it
increased in value the previous 28.
It will affect you heirs if you had got a reverse mortgage. Whatever was loaned out to you would have to be paid back. Banks do nothing in your interest…always remember that
Actually its one of the safest loans around. There is insurance in place so if it is upside down, the government covers the difference.
Meanwhile, people in traditional mortgages do not have this insurance and are up the creek.
For individuals who have already obtained a reverse mortgage, the overall mortgage situation will have no affect on their current reverse mortgage loan or cash benefits. However, if the individual was attempting to sell the home or refinance the reverse mortgage loan, then the current value of the home would drive the selling price or the new loan value.