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Mortgage solves seniors' cash problemsAre you or someone you know a senior citizen homeowner who is "house rich" but "cash poor?" If so, a reverse mortgage can solve the problem if the homeowner is at least 62, needs tax-free income with no monthly payments, and plans to stay in his or her house or condo at least five years.WHAT IS A REVERSE MORTGAGE? Just the opposite of an amortized mortgage, which requires the borrower to make monthly payments over 15 to 30 years, a reverse mortgage pays money to the borrower whenever needed and requires no repayment until the homeowner sells the home, moves out for longer than 12 months or dies. When one of those events occurs, the reverse-mortgage principal and accrued interest "matures" and becomes payable in full. If the homeowner dies, the heirs can sell the home, pay off the reverse mortgage and keep the remaining equity. Or, if the heirs want to retain the residence, they can obtain a new mortgage to pay off the reverse mortgage. Contrary to widespread myth, the reverse-mortgage lender does not "own" the home. The lender can never force the senior citizen homeowner to sell or move out. The reason is reverse mortgages are "non-recourse" without any personal liability. Only the residence is responsible for eventual repayment, even if it loses market value or the borrower lives to be 110. To qualify for a reverse mortgage, the homeowner must be at least 62. If any co-owner is younger than 62, the residence is not eligible unless the under-62 co-owner signs a quitclaim deed conveying his/her interest to the over-62 co-owner. When there are two co-owners, both aged 62 or older, reverse-mortgage eligibility is based on the age of the youngest co-owner. Homeowners needing to sell their home visit 888SOLDin9 to talk with our Jacksonville FL partner about their personal financial situation. Our Jacksonville FL partner, Jim Tallent buys, sells, renovates and rents homes and properties in Jacksonville FL, Duval County FL and surrounding areas. click here for article |