 |
Worried About Mortgage |
| |
 |
Hello! You were very kind to answer a question for me almost two years ago, regarding a reverse mortgage (my childless uncle has willed me his home when he passes but first he has left a life tenancy to a friend). As he has had a series of mini-strokes lately, he thought I should have a copy of his reverse mortgage statement. I was surprised to see that it is really just a line of credit based on the value of his home. It is a floating line of credit - as we all know, with rising interest rates, not really a good thing. He also pays a monthly "Periodic MIP" of $20.83.
He has this through a company that lost a case in California for false marketing. I am very concerned. He is a resident of New Mexico. Should I be consulting an attorney? |
| |
| |
 |
You can always talk with a real estate lawyer in New Mexico, to explore whether anything in that California case would apply to your uncle’s situation.
The arrangement you describe, though, sounds typical for a reverse mortgage. A floating line of credit is one of the options with HUD’s Home Equity Conversion Mortgage. That MIP charge is a mortgage insurance premium similar to the one HUD uses with its FHA mortgages. It goes into a fund that makes up the shortfall, if the homeowner lives so long that the debt builds up beyond the value of the property.
|
| |
|
Edith
Originally published on November 6, 2006 |
| |
| |
|
Back to Summary
|
< Previous | Next > |
| |
|
|
