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AtlanticPacificR
29 Posts |
 Posted - 05/19/2008 : 1:07:33 PM
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Owner Occ
6-Unit
NJ
650k Val
123k balance on current mortgage
doesnt even want the cashout, just wants to aleviate the mortgage payment... thank you in advance....
Will anyone do this? |
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seaRick1
405 Posts |
Posted - 05/19/2008 : 1:11:51 PM
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| I don't believe so. RM's are for 1 to 4 unit residential properties as far as I know. |
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Cliff_Auerswald
454 Posts |
Posted - 05/19/2008 : 1:21:32 PM
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| 1-4 Res. Units Max |
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Cliff_Auerswald
454 Posts |
Posted - 05/19/2008 : 1:27:37 PM
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| I can close the equitykey for you, give me a call |
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AtlanticPacificR
29 Posts |
Posted - 05/20/2008 : 11:15:23 AM
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BUMP...
Any non FHA reverse mortgage lenders that will do this???
Thanks in advance... |
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StayInHomeGuy
281 Posts |
Posted - 05/20/2008 : 3:25:00 PM
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quote:
Originally posted by AtlanticPacificRC
BUMP...
Any non FHA reverse mortgage lenders that will do this???
Thanks in advance...
Non-FHA reverse lenders....? Not sure if that even exists. There are a few private programs such as the equitykey mentioned above, but I don't really believe in that program, or those like it. Basically the borrowers will be agreeing to split the equity earned on the property from time of deal closed until they move, sell or die, which could end up being a SUBSTANTIAL charge.......YIKES. |
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rainmand
3983 Posts |
Posted - 05/21/2008 : 09:10:23 AM
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>>Basically the borrowers will be agreeing to split the equity earned on the property from time of deal closed until they move, sell or die, which could end up being a SUBSTANTIAL charge.......YIKES
It doesn't work like that. The homeowners would be sharing a portion of the "future" equity with the investor, not the "current" equity. And there aren't any fees or debt associated with the option, and they can move and rent the residence without the agreement ending, so in many instances it provides a better solution then a Reverse Mortgage. |
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StayInHomeGuy
281 Posts |
Posted - 05/21/2008 : 11:52:11 AM
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quote:
Originally posted by rainmand
>>Basically the borrowers will be agreeing to split the equity earned on the property from time of deal closed until they move, sell or die, which could end up being a SUBSTANTIAL charge.......YIKES
It doesn't work like that. The homeowners would be sharing a portion of the "future" equity with the investor, not the "current" equity. And there aren't any fees or debt associated with the option, and they can move and rent the residence without the agreement ending, so in many instances it provides a better solution then a Reverse Mortgage.
I think you misread wht I wrote "split the equity on the property from time of deal closed until they move, sell or die" A big complaint about these RM's is that they are expensive... the housing market WILL bounce back, it always does, if your borrower lives in the home another 15+ years and the home appreaciate by 100k, that's a 50K cost. Most people see their home as an investment, so why split that investment with a bank when you can avoid it? I'm sure these programs provide a solution to a select group of people but I wouldn't pitch this equity sharing before a reverse. In some cases it might make sense, but I would explore the RM first.
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Cliff_Auerswald
454 Posts |
Posted - 05/22/2008 : 08:15:31 AM
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Equitykey isn't for everyone and often I use it as a last resort but if you look at the scenario this applicant would receive $97,500 of which he/she can payoff most of their existing mortgage and have their rental income on autopilot.
The only EK we may be doing this month is for a $4Million mixed use commercial deal (owes 650k). This one has just enough to payoff their mortgage as well, and since they are protected on all current equity and still keep 50% of future appreciation it's a win/win for the family. 99% of my business are HECM's but the program is good to have in your tool box for those who cannot qualify for the reverse.
I'm also allowed to pay 1% of property value for referrals and since this isn't considered even a loan it bypasses rspa
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StayInHomeGuy
281 Posts |
Posted - 05/22/2008 : 08:31:13 AM
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quote:
Originally posted by Cliff_Auerswald
Equitykey isn't for everyone and often I use it as a last resort but if you look at the scenario this applicant would receive $97,500 of which he/she can payoff most of their existing mortgage and have their rental income on autopilot.
The only EK we may be doing this month is for a $4Million mixed use commercial deal (owes 650k). This one has just enough to payoff their mortgage as well, and since they are protected on all current equity and still keep 50% of future appreciation it's a win/win for the family. 99% of my business are HECM's but the program is good to have in your tool box for those who cannot qualify for the reverse.
I'm also allowed to pay 1% of property value for referrals and since this isn't considered even a loan it bypasses rspa
That last part about referrals fees is intereseting, must be a gray area for now 
I understand the EK somewhat, and I'm sure it is useful in certain situations such as this with a funny property type, but from what I understand the borrower must be a non smoker, never had any serious disease, pass a health check and also qualify for a life insurance policy? I also heard that should EK choose to acquire the property at the end of the agreed term that they charge an additional "aqcuisition cost" which is equal to the cost to sell it, up to 8% of the fair market value at the time. So all-in-all they get a 50-50 split on gained equity PLUS 8%....and people think HECM's are expensive? |
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Cliff_Auerswald
454 Posts |
Posted - 05/22/2008 : 11:19:01 AM
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| Your are thinking of the 15yr prepayment penalty which is charged if they decide to payoff the cloud on title (performance deed) prior to settlement of estate, it's not a charge in addition. |
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StayInHomeGuy
281 Posts |
Posted - 05/22/2008 : 11:25:06 AM
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quote:
Originally posted by Cliff_Auerswald
Your are thinking of the 15yr prepayment penalty which is charged if they decide to payoff the cloud on title (performance deed) prior to settlement of estate, it's not a charge in addition.
funny we are on this subject and this gets sent around my company today:
http://www.inman.com/inmaninf/storyxml/news/50008
I'm not trying to knock the program at all, please don't get me wrong, I beleive that this could be a useful tool in the right situations. |
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Cliff_Auerswald
454 Posts |
Posted - 05/22/2008 : 1:26:31 PM
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that page is blank when it loads, please email me at cliff@allrmc.com
thanks! |
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StayInHomeGuy
281 Posts |
Posted - 05/22/2008 : 1:30:40 PM
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quote:
Originally posted by Cliff_Auerswald
that page is blank when it loads, please email me at cliff@allrmc.com
thanks!
Sorry for the bum link, here is the same article....different website.
http://www.akron.com/akron-ohio-real-estate.asp?aID=2495 |
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