Senior Citizens, age 62 and older, may qualify for a Reverse Mortgage. Even if the house is in foreclosure, it can be saved, if the Owner meets the qualifications for a Reverse Mortgage. A Reverse Mortgage allows you to tap the equity in your home without having to sell or take out another type of loan.The HECM reverse mortgage is a loan that must be repaid when the borrower dies, sells the home, moves out of the house, or defaults on other obligations such as insurance, taxes etc.
The HECM Reverse mortgage loan is government insured and regulated. One of the more important aspects of the owner’s home is the Current appraised value versus the mortgage amount owed. Also, mortgagees are required to perform a thorough financial assessment of prospective borrowers.
One important thing to remember is that the property is always titled/owned by the current owner and remains in their Estate until final disposition of the property after the owner is deceased. All interest accrued becomes due when the borrower dies, sells the home, moves out of the house, or defaults on other obligations such as insurance or taxes.
Deferral Period: A Non-Borrowing Spouse may be entitled to a "deferral period" following the death of the last surviving mortgagor, during which the due and payable status of a HECM is further deferred based on the continued satisfaction of the requirements of a Non-Borrowing spouse. During this period, the property shall continue to be considered the Principal Residence of any Non-Borrowing Spouse who is temporarily in a health care institution, provided the Non-Borrowing Spouse physically occupied the property immediately prior to entering the health care insitution and the Non-Borrowing Spouse's residency in a health care institution does not exceed twelve consecutive months.
A Non-Borrowing spouse may be entitled to a deferral of the due and payable status of a HECM if they meet certain requirements: They must have been the spouse at the time of the HEMC loan closing, and must have remained the spouse for the duration of the HECM mortgagor's lifetime; Have been properly disclosed to the mortgagee at origination and specifically named as a Non-Borrowing spouse in the HECM documents; Have occupied, and continue to occupy, the property securing the HECM as the Principal residence on the Non-Borrowing spouse; Within ninety days from the death of the last surviving HECM mortgagor, establish legal ownership or other ongoing legal right to remain (e.g executed lease, court order etc) in the property securing the HECM; After the death of the last surviving mortgagor, ensure all other obligations of the HECM mortgagor(s) contained in the loan documents continue to be satisfied; and After the death of the last surviving mortgagor, ensure that the HECM does not become liable to be called due and payable for any other reason.
These materials are not from HUD or FHA and were not approved by HUD or a government agency.
****For Reverse Mortgages, a Home Equity Conversion Mortgage (HECM) Certificate is required. This Certificate requires a professional Counseling Service instruction and then a Certificate Issued before any Reverse Mortgage may be applied for from any Lender.
****For all questions, please be sure to contact our trained staff at Marvel Ventures Mortgage, Inc.
****These materials are not from HUD or FHA and were not approved by HUD or a government agency