A Plain & Simple Explanation
January 14th, 2008
- Not Just A Question Of Age
- Can I Get A Reverse Mortgage For My Condo?
- Advice For Loan Officers: Practice Your Take
- A Different Set Of Answers
- Beware of the Jury Scam
The folks at the Charlotte News & Observer have come up with a really good reverse mortgage summary.
A reverse mortgage, says the newspaper, “is the exact opposite of a traditional mortgage. Rather than the borrower making monthly mortgage payments, the lender pays the borrower. Income and credit history are irrelevant.
“Instead, the mortgage is based on the equity — the home’s value minus debt — the homeowner has in the home.”
The article then goes on with a brief question-and-answer format. This is good stuff, plainly written and well balanced. For instance, one of the questions asks if a reverse mortgage borrower can be foreclosed? It seems like a strange idea given that there are no monthly payments with a reverse mortgage, but the answer is “yes” if the property is not maintained or property taxes are not paid.
For the whole story, see: When Mortgages Reverse