If I Still Owe Money On A 1st & 2nd Mortgage, Can I Still Get A Reverse Mortgage?

Tips to help you determine whether or not you are eligible for a reverse mortgage.

First, you need to understand how reverse mortgages work. If you are struggling to make ends meet, a reverse mortgage could help you pay the bills. A reverse mortgage is like a traditional mortgage, only instead of paying monthly payments to the bank, the bank sends a monthly payment to you. You can use this money for bills, travel, or any other expense.

Qualifying For A Reverse Mortgage

Reverse mortgages are very closely regulated. To qualify for one, you need to be at least sixty-two years of age. Additionally, your home cannot appraise for more than $625,000. If you still owe money on your property, you are not eligible because you still owe the bank money. Only those who have paid the bank back in full can qualify. If you still have a first or second mortgage that has not been paid in full, you will have to find another financial solution to your financial problems. However, there are no credit requirements to qualify. Even if you have bad credit, as long as you meet the other requirements you can still participate in this program.

Discussing Your Decision With Your Family

If you decide that a reverse home loan is right for your situation, you should discuss your decision with your family. They might believe that the bank will automatically take possession of your home after death. This is not the case. The loan becomes due after your death, but if your family repays the amount of the reverse mortgage, they can keep possession of your home. Ultimately, this decision is up to you. If you qualify and need the money, a reverse mortgage can give you the financial freedom necessary to enjoy your retirement.

Related posts:

1. How Do I Receive My Money From A Reverse Mortgage?
2. Does The Money From A Reverse Mortgage Affect Medicare, Social Security, or Pension Benefits?
3. Does The IRS Consider The Money From A Reverse Mortgage Income?
4. Which Reverse Mortgage Product Will Cost Me The Least Amount Of Money?
5. How Can I Get Extra Money With A Reverse Mortgage?

This entry was posted on Wednesday, January 27th, 2010 at 7:16 pm and is filed under reverse mortgage. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.