The reverse mortgage is a new source of cash for aging homeowners. Instead of paying the bank each month, you get a payment, depending on the amount of equity in your home.
A big drawback has been the potential for financial suffering and loss by the spouse who isn’t listed on the mortgage. When the spouse who signed the note dies, the lender comes after the property and can foreclose, throwing the surviving spouse into the street if he or she doesn’t have enough to pay off the mortgages.
Starting with mortgages written after August 4, there are new federal protections for the spouse whose name doesn’t appear on the mortgage. The surviving spouse can stay in the house for the rest of her life, even if she never signed the mortgage. She must keep makng the property tax payments and the homeowners insurance and the house needs to be maintained in good shape.
The spousal protection applies only to those who were spouses when the reverse mortgage was signed. Anyone who marries the homeowner after a reverse mortgage is granted will not get the spousal rights to stay in the house.
A homeowner must be age 62 or older to get a reverse mortgage. The money is available in a lump sum or a line of credit or a monthly payment.
The National Council on Aging (NCOA) offers counseling. :
“Our counselors are HUD-approved aging services professionals who can help you:
- Evaluate the pros and cons of a reverse mortgage for your situation.
- Apply for public and private benefits that can help you pay for needs like home energy, meals, and medications.
- Find services in your community that can help you stay independent longer.
There is a $90 upfront fee for this service. Depending on available funding, we will:
- Waive the $90 counseling fee for a limited number of older adults who are facing financial hardships such as foreclosure or bankruptcy, who are using respite care, or whose monthly income is less than $1,000.
- Allow a limited number of older adults to pay at closing if their monthly income is less than 200% of the federal poverty level ($1,945 for single homeowners and $2,621 for couples).”
There is a $90 upfront fee for this service. Depending on available funding, we will:
- Waive the $90 counseling fee for a limited number of older adults who are facing financial hardships such as foreclosure or bankruptcy, who are using respite care, or whose monthly income is less than $1,000.
- Allow a limited number of older adults to pay at closing if their monthly income is less than 200% of the federal poverty level ($1,945 for single homeowners and $2,621 for couples).
– See more at: http://www.ncoa.org/enhance-economic-security/home-equity/reverse-mortgage-counseling.html#sthash.bYhIRwbC.dpuf
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There is a $90 upfront fee for this service. Depending on available funding, we will:
- Waive the $90 counseling fee for a limited number of older adults who are facing financial hardships such as foreclosure or bankruptcy, who are using respite care, or whose monthly income is less than $1,000.
- Allow a limited number of older adults to pay at closing if their monthly income is less than 200% of the federal poverty level ($1,945 for single homeowners and $2,621 for couples).
– See more at: http://www.ncoa.org/enhance-economic-security/home-equity/reverse-mortgage-counseling.html#sthash.bYhIRwbC.dpuf
There is a $90 upfront fee for this service. Depending on available funding, we will:
- Waive the $90 counseling fee for a limited number of older adults who are facing financial hardships such as foreclosure or bankruptcy, who are using respite care, or whose monthly income is less than $1,000.
- Allow a limited number of older adults to pay at closing if their monthly income is less than 200% of the federal poverty level ($1,945 for single homeowners and $2,621 for couples).
– See more at: http://www.ncoa.org/enhance-economic-security/home-equity/reverse-mortgage-counseling.html#sthash.bYhIRwbC.dpuf
There is a $90 upfront fee for this service. Depending on available funding, we will:
- Waive the $90 counseling fee for a limited number of older adults who are facing financial hardships such as foreclosure or bankruptcy, who are using respite care, or whose monthly income is less than $1,000.
- Allow a limited number of older adults to pay at closing if their monthly income is less than 200% of the federal poverty level ($1,945 for single homeowners and $2,621 for couples).
– See more at: http://www.ncoa.org/enhance-economic-security/home-equity/reverse-mortgage-counseling.html#sthash.bYhIRwbC.dpuf
