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The proceeds of the sale can be used to pay off the remaining mortgage.
AnswerYou must use the services of an attorney if you want to sell your home and take back a mortgage. The mortgage and note must be properly drafted for your state so that you are fully protected should the mortgagor default and you need to foreclose and take possession of the property.
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When you have a reverse mortgage who is the homeowner?
The borrower on the home remains the homeowner, the reverse mortgage lender will have a lien against the property, just like other mortgages. Your home ownership rights remain the same as before with one exception, that you cannot rent out the home and must keep it as your primary residence. if you move you need to sell the home or refinance it to a forward conventional mortgage or you could be in default of the mortgage agreement.
What is the importance of having a good mortgage insurance protection plan?
The best protection plan for a homeowner is to have mortgage insurance. The importance of having mortgage insurance is that when a homeowner passes away or becomes incapacitated, their loved ones will not have to sell the home or leave behind a huge debt for them to pay off.
How is a reverse mortgage paid off?
A reverse mortgage can be paid off either by selling the home and using sales proceeds, refinancing the home, or doing a streamline reverse mortgage to a new reverse mortgage program. If the homeowner wishes to move, they can sell and use a reverse mortgage to purchase a new home. If the homeowner has passed away, the heirs have 6 months to refinance the home, sell it, or decide to turn over the home to the lender. If there is negative equity in the home the homeowner or the heirs may turn the property over to the lender and walk away without personal recourse. Reverse mortgages are non recourse loans, meaning the only recourse the lender has for collecting lost funds is against the property itself.
What is the difference between a short sale and a foreclosure in real estate matters?
When the owner of a home can no longer afford to make payments on their home mortgage, the home may be sold in a short sale before it enters into foreclosure. A short sale is one of a homeowner's last resorts. It occurs when a home is sold for less than the balance remaining on the mortgage. Typically the homeowner and lender strike a deal in which the homeowner agrees to accept less than the amount they owe on their home (making no profit) in exchange for the lender forgiving the remaining amount on the loan. This process may still damage the homeowner's credit, but they will avoid foreclosure. If a homeowner can't make payments on their mortgage and the home does not sell through a short sale, the lender can take possession of and sell the property by a foreclosure proceeding. To find out more read the full article on Nestiny.com
Can a real estate broker refuse to pay an agent's commission?
A short sale is a process by which a homeowner who cannot keep up with mortgage payments may avoid a foreclosure. In a short sale, the homeowner allows his lender to market and sell the home.
What can homeowner do if lien is file against his property?
The owner cannot mortgage or sell the property until the lien is paid.
What Is A Reverse Mortgage and Is It Right For You?
Many senior citizens are having difficulty making their mortgage payments during these difficult economic times. In addition to their increasing living expenses, medical needs and dwindling savings, their incomes are fixed or decreased. They don't want to give up their home, but making their monthly payments means going without other necessities and/or no money for entertainment or leisure. Reverse Mortgage may be an option. A Reverse Mortgage is a low interest loan available only to senior age 62 or older who own their home. The home is used as security for the loan. The loan does not have to be repaid until the homeowner is deceased. The estate of the homeowner has six months to pay back the loan or sell the home to pay the loan. Once the Reverse Mortgage Loan has been repaid if there is any money leftover, then it will go to the estate. The estate, however, is not responsible for repaying any deficiency if the home does not sell for enough money to cover the loan. The lender will have to take a loss. The amount given to a homeowner is decided by several factors. The homeowner's age (min. required 62), the current interest rate, the dollar amount that the home is appraised for, and lending limits that are set by the government. In addition to these factors is whether or not the home has an existing mortgage that needs to be paid off. For example, if the homeowner owes $95,000 on an existing mortgage and the lender says they will allow a loan of $200,000, then the homeowner will receive the balance after the mortgage has been paid. In certain circumstances it may not be beneficial to get a Reverse Mortgage. For example, if the homeowner wants to pass the house down to a friend or family member. This person would have to pay off the Reverse Mortgage Loan in order to keep the home. If the home owner is not having difficulty making the mortgage payments, but needs a little money to do some repairs or improvements. In this case a home equity loan may be beneficial. If the homeowner has a considerable mortgage on the home and it is not worth much more than the mortgage. Then a Reverse Mortgage may not be an option. Those considering a Reverse Mortgage should talk to their financial advisers, their families and/or an attorney before making a final decision.
Does mortgage insurance help homeowner with defaulted payments to keep home?
No, sorry! It just means that if you lose your home to the bank and they can't sell it for what your mortgage is worth (plus expenses), the BANK won't lose by it! So you pay the BANK'S insurance premium to protect THEIR interests, not yours. You can purchase 'Income Protection' insurance for yourself, so that you should never be in a position to lose your home, even if you do lose your livelihood. It will be expensive, but unless you are certain that your home is worth at least 25% more than your mortgage, you will lose out if you are obliged to sell (and letting the bank sell it for you will cost you dearly!).
Does a homeowner who has a mortgage on his home have legal title to the home?
Generally, yes. That can be confirmed by a visit to the land records office where you can perform research to find out who owns a property. In another sense, in a title theory state, a homeowner who grants a mortgage actually conveys the property to the bank until the loan is paid. The bank can take no further action unless there is a default. During that time the homeowner has equitable title to the property and is considered the owner. When the loan is paid the bank must record a satisfaction of the mortgage in the land records. If the loan isn't paid the bank will take possession by foreclosure and then has the right to sell the property.
What Is What if your Opinion Of Reverse Mortgage?
A reverse mortgage is a loan for senior homeowners that uses a portion of the home's equity as collateral. The loan generally does not have to be repaid until the last surviving homeowner permanently moves out of the property or passes away. At that time, the estate has approximately 6 months to repay the balance of the reverse mortgage or sell the home to pay off the balance. All remaining equity is inherited by the estate. The estate is not personally liable if the home sells for less than the balance of the reverse mortgage.
How can I get out of a homeowner Association ?
As most home owners associations are written into the deed as a convanant there is no way out but to sell the property.
Can a mortgage company sell your loan?
A mortgage company can sell your home for the right price. Often times mortgage companies will offer you an alternative to selling your loan so that you get the best deal available to you. See the related links for mortgage companies in Texas.
