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My friends father died, he had a reverse mortgage. The bank let my friend (the daughter) live there for one year without any payments she had to make. First off, the bank is probably still adding that to the reverse mortgage right? SEcond, will the bank make her pay back the loan? He house is worth 325 or 350K and she owes 140K. The bank is just not going to let her live in the house free and let her have it correct? This house is in a desirable town 30 minutes to NYC and can easily sell. She is kind of in denial and does not have the means to pay back the loan. She thinks the bank wont ask for the money back???? There is no program for reverse mortgage bail outs????
My friends father died, he had a reverse mortgage. The bank let my friend (the daughter) live there for one year without any payments she had to make. First off, the bank is probably still adding that to the reverse mortgage right? SEcond, will the bank make her pay back the loan? He house is worth 325 or 350K and she owes 140K. The bank is just not going to let her live in the house free and let her have it correct? This house is in a desirable town 30 minutes to NYC and can easily sell. She is kind of in denial and does not have the means to pay back the loan. She thinks the bank wont ask for the money back???? There is no program for reverse mortgage bail outs????
There are no payments required for a reverse mortgage while the borrower is alive. The interest is added onto the principal that is required to be repaid after the borrower sells the house or dies. I'm sure that they've added the interest for the year since her father died onto the principal.
Once the borrower dies, the loan must be repaid, either from sales proceeds or the proceeds of another financing. The people who inherit the house can't remain there indefinitely. They were nice to let her stay there for a year, probably because of the down market.
As an aside, where can you possible get a house for $325K or so in a desirable town within 30 minutes of NYC? That sounds impossible to me.
There are no payments required for a reverse mortgage while the borrower is alive. The interest is added onto the principal that is required to be repaid after the borrower sells the house or dies. I'm sure that they've added the interest for the year since her father died onto the principal.
Once the borrower dies, the loan must be repaid, either from sales proceeds or the proceeds of another financing. The people who inherit the house can't remain there indefinitely. They were nice to let her stay there for a year, probably because of the down market.
As an aside, where can you possible get a house for $325K or so in a desirable town within 30 minutes of NYC? That sounds impossible to me.
sure you can, its a 2 bedroom/1 bathroom, small cape. It has nothing fancy , old kitchen, old bathroom and needs some basic work, nothing major but its a small house, and house prices have been coming down in Bergen County.
Thanks for your post!!!! Marilyn
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