Quote:
Originally Posted by Mack184
When you take out a reverse mortgage the lender gives you somewhere between 45-65% of the value of the equity in your home. The amount varies state to state. You make NO payments of any kind while you live in the home and use the money that you have been advanced.
After you pass and your estate is in probate the lender has a secured claim on the property. The amount due is the amount advanced plus interest for the amount of time you had the money. One of the reasons they will only give you 45-65% of the equity is that they are hedging their bets that the property will not decrease in value because they only get one bite at the apple following your death.
So for the lender to be made whole following your death, that home has to be in good shape because selling that home is how they get back the money advanced to you and the interest owed.
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I understand what a reverse mortgage is but I have no idea what you are talking about. The house was in great shape. She died. What does she care? The reverse mortgage was taken out by her husband to take care of him and her. He chose monthly payments. He passed before her. The kids took what they wanted and left. Now there is no one to care about the house. The bank now essentially owns it.
Why doesn't the bank keep it up and try to sell it? There is no For Sale sign in the yard. If I was the bank I would try to sell the house as fast as I could. I would keep the electricity on and keep the house at temperature. What the bank is doing makes no sense.
Z