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" A mortgage has just two parties: the borrower and the lender. A deed of trust, however, has an additional third party, called a "trustee" who holds onto the title of the home until the loan is repaid. If the loan isn’t repaid, the trustee -- often times an escrow company -- is responsible for starting the foreclosure process.
What happens when the borrower can’t pay ?
This is the major and important difference between a mortgage and a deed of trust. In a mortgage, if the borrower can’t pay, the foreclosure process and the selling of property must go through the courts. This is known as judicial foreclosure and the process involves the lender filing a lawsuit. This can be a costly process for both the borrower and the lender.
If a deed of trust is used, however, courts can be bypassed. This is known as non-judicial foreclosure and it’s almost always faster and less costly.""
AS per the agreement a deed in lieu is executed and the trustee gives the title to the lender ...
here let me post it again so you can read it this time .
tell us where this refers to anything but when the LOAN IS DUE .[/quote]
Your information is merely talking about a regular mortgage and a deed of trust. A reverse mortgage has no payments from the owner. The money is coming from the provider.
Think about that and let that sink in a while. You appear agitated and are talking about yourself in the plural again. Let the voices in your head calm down and let's pick this up later so you can hear the factual information that you need to understand reverse mortgages.
here you go . i found the original site i had quoted in my thread . i had trouble finding it again but here you go .
perhaps you will learn something too instead of always trying to argue.
a reverse mortgage uses a deed of trust or it is not hud approved and won't be insured . . actually it uses two deeds of trust and 2 notes . there must be a trustee holding title and everything relating to the deed of trust above apply's when the balloon payment becomes due .. . .
a few states do not use deeds of trusts so in those cases they can use mortgages and hud will insure them but nothing changes . the balloon payment comes due and if not paid the house is the lenders
so accept for a trustee as a middleman it is no different and a reverse mortgage is still a loan like any other loan except it has the loan proceeds paid out either lump sum or over time and a balance due at the end in the form of a balloon payment .
you still have no way of getting to the equity without selling . all you are doing is borrowing more money
if you paid 400k and have a 100% equity in the house , well you can borrow another few hundred k in total which you owe and in the case of the reverse mortgage you can give them the house but in no way has the houses equity been tapped directly while you live in it .
the equity is always intact , you just have liens against the equity when you borrow more money as collateral . no different then an auto loan is to a car .
Last edited by mathjak107; 10-06-2015 at 03:17 AM..
Basic financing these days does not cut it, if you cant increase your income your going to be dead in the water. If you cant extract money from the market without taking huge losses or engage in jobs/business that pay dramatically above min wage then no amount of adult night classes can help you manage your peanuts in a world where things are rapidly inflating in price (other than certain base commodities right now).
What you are saying is that someone making say 5$/hr where rent is 1300$/month should be able to magically do some basic math and have a huge retirement account.
The competition is fierce these days and if you don't have extraordinary skills then you are going to fall by the way side and no amount of addition or subtraction is going to make retirement comfortable.
Quote:
Originally Posted by honobob
Mathjak107 You don't make payments on a reverse mortgage. That's kinda the REVERSE part of it. You get paid in a reverse mortgage. See the 5 different ways you can get the proceeds that I posted above. Your posting incorrect and is just confusing anyone with limited knowledge that you are exhibiting.
NOVICES YOU DON'T MAKE PAYMENTS ON A REVERSE MORTGAGE!
I used to have little empathy for people that did a poor job of managing their finances because I assumed anyone that graduated high school should be able to navigate basic finances. I assume you graduated HS but I see your financial intelligence is limited to incorrect Google searching. I'd suggest an adult school course in household planning, financing and budgeting. Also a lot of Realtors have home buying seminars where you could learn the basics of mortgages plus the pitfalls of predatory lending.
Basic financing these days does not cut it, if you cant increase your income your going to be dead in the water. If you cant extract money from the market without taking huge losses or engage in jobs/business that pay dramatically above min wage then no amount of adult night classes can help you manage your peanuts in a world where things are rapidly inflating in price (other than certain base commodities right now).
What you are saying is that someone making say 5$/hr where rent is 1300$/month should be able to magically do some basic math and have a huge retirement account.
The competition is fierce these days and if you don't have extraordinary skills then you are going to fall by the way side and no amount of addition or subtraction is going to make retirement comfortable.
No one makes $5/hr in the US. Its way below minimum wage, and if rent on a small place is $1300 then 90% of the time most people are making above minimum wage.
No one makes $5/hr in the US. Its way below minimum wage, and if rent on a small place is $1300 then 90% of the time most people are making above minimum wage.
Or maybe your $8/hr job was cut to part-time due to Obamacare.
If owning isn't cheaper, why are there landlords owning the properties they rent? Don't tell me landlords aren't making money!
If renting isn't cheaper, why is anyone lending money for a mortgage instead of buying the property themselves? Don't tell me bankers aren't making money!
Last edited by ncole1; 10-08-2015 at 06:42 AM..
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