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My grandparents are no longer able to live in their condo that they reverse mortgaged. It's on the 2nd floor, and they can no longer go up stairs. Is there any way to "buy back" a reverse mortgage? They have only received about $5,600 on a $51,000 reverse mortgage. Ideally, we'd like to pay back what they have received and sell the condo to buy them a more appropriate home.
I would start by looking at the contract they signed. Every detail should be spelled out in the contract. I wouldn't think it would be too difficult to get out of, since there hasn't been any appreciation since the took out the reverse. Perhaps the $5600., plus fee..?
Read the contract, and give the mortgage company a call if you're still not clear. Most such mortgages end when the person dies or sells. Sounds like they are ready to sell and end the contract.
You should be able to refinance it, but I would recommend that you just go ahead and sell it
Quote:
Originally Posted by austinHodge
My grandparents are no longer able to live in their condo that they reverse mortgaged. It's on the 2nd floor, and they can no longer go up stairs. Is there any way to "buy back" a reverse mortgage? They have only received about $5,600 on a $51,000 reverse mortgage. Ideally, we'd like to pay back what they have received and sell the condo to buy them a more appropriate home.
Ask the lender, my friend. Go straight to the horse's mouth, don't fill your head with 'information.' Otherwise, go to the contract and read it -- most reverse mortgages DEMAND the client's prior knowledge of the loan parameters BEFORE full application for the darn product. I do believe that all reverse products are sold with no Pre-Pay penalty.
Ask the lender. It's likely that the 'draw' they've taken will simply be deducted from the sale proceeds. Think good thoughts!
Thanks everyone. I am very new to reverse mortgages, but I'll definitely look at the contract. My grandparents are under the impression that the bank owns the property and is paying them for it until they pass. It sounds like that is not the case. Again, I'll review the contract to get some clarity.
It'll be confusing, to say the least. This is why I suggest asking the lender -- you're not the first person to ask these questions; you simply don't know the answer -- think good thoughts!
>>Is there any way to "buy back" a reversemortgage?
A Reverse Mortgage works exactly like a Traditional Mortgage when it comes to that, and all they have to do it pay back the amount they've borrowed, plus interest, and the loan is over.
my wife dad die we think his reverse mortgage loan was $52,000 but he was credited $20,000 of the load we would like to sell the house if this is the case all we will need to pay back in the $20,000?
If I'm understanding you right, they were allocated $52,000 and only converted $20,000 into cash. That means the remaining $32,000 is sitting in the Credit Line in the form of equity and is available to the homeowner upon request.
If you want to pay it off early, the $20,000 plus accured interest is the amount that'd be owed. A monthly statement is provided by the Lender and it lists the current total amount owed. It also contains a toll free number for the Customer Service department, and you can call them with questions too.
my mom died may 2010 my stepdad got a reverse mortgag june 2011 is there anything i can do to stop it ?
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