| Author |
Previous Topic | Next Topic |
|
rob24
111 Posts |
 Posted - 06/12/2008 : 3:14:04 PM
|
I took a reverse mortgage application but the borrower had a few questions so i figured i would ask the pros at BO since I have not done a reverse yet. The husband is 67 and his wife is 55. He does not want to do the reverse mortgage if he dies in the next 7 years and his wife will not be able to continue with the reverse since she does not work, and would have to be taken off title do to the RM. What can he do in this situation? Does he need to get life insurance that will pay off the loan in case he dies? Since the wife does not work, she would not be able to get a loan to refinance. What will happen to her and the house?
Also, is there any brochure or information I can show him that answers this question? Thanks. |
|
meridian1
273 Posts |
Posted - 06/12/2008 : 4:20:02 PM
|
quote:
Originally posted by rob24
I took a reverse mortgage application but the borrower had a few questions so i figured i would ask the pros at BO since I have not done a reverse yet. The husband is 67 and his wife is 55. He does not want to do the reverse mortgage if he dies in the next 7 years and his wife will not be able to continue with the reverse since she does not work, and would have to be taken off title do to the RM. What can he do in this situation? Does he need to get life insurance that will pay off the loan in case he dies? Since the wife does not work, she would not be able to get a loan to refinance. What will happen to her and the house?
Also, is there any brochure or information I can show him that answers this question? Thanks.
Since the wife is just 55, they are not eligible for a reverse mortgage. all the parties should satisfy the age requirements of reverse mortgage |
|
|
Cliff_Auerswald
388 Posts |
Posted - 06/13/2008 : 08:52:15 AM
|
Have you gone through any formal training? I would suggest you do before taking any applications, not sure how you have access to HECM disclosures without training from your lender in all of these aspects. I would advise them to speak with a qualified financial planner. Yes he would qualify, no she could not be added to title (because this would accelerate the note), yes they are putting themselves into a future hardship especially since she does not work. Run an amortization schedule and show them exactly how much money they will need a policy for assuming worst case and if it doesn't make sense don't put them into the reverse. I don't cross sell any financial products but I do recommend the moneyguard offered by Lincoln in SOME of these cases. Again have them speak with their trusted financial planner.
|
|
|
WorldWideWayne
1961 Posts |
Posted - 06/26/2008 : 10:31:48 AM
|
Rob
Why do they want the reverse mortgage? What are they trying to accomplish? |
|
|
rob24
111 Posts |
Posted - 06/26/2008 : 1:37:12 PM
|
quote:
Originally posted by WorldWideWayne
Rob
Why do they want the reverse mortgage? What are they trying to accomplish?
The borrowers are currently in an adjustable that will be increasing at the end of this year and they want to no longer have a mortgage payment and use that money for increased cash flow for their retirement since they are not working. |
|
|
rob24
111 Posts |
Posted - 06/26/2008 : 1:41:22 PM
|
quote:
Originally posted by Cliff_Auerswald
Have you gone through any formal training? I would suggest you do before taking any applications, not sure how you have access to HECM disclosures without training from your lender in all of these aspects. I would advise them to speak with a qualified financial planner. Yes he would qualify, no she could not be added to title (because this would accelerate the note), yes they are putting themselves into a future hardship especially since she does not work. Run an amortization schedule and show them exactly how much money they will need a policy for assuming worst case and if it doesn't make sense don't put them into the reverse. I don't cross sell any financial products but I do recommend the moneyguard offered by Lincoln in SOME of these cases. Again have them speak with their trusted financial planner.
I am going to be undergoing training soon on reverses. The borrower was referred to be but in the meantime I gave the application to someone else in the office that has reverse mortgage experience because I agree that it is not something people should be selling until they know the product inside and out. Thanks for the reply. |
|
|
Managing Prime
2319 Posts |
Posted - 06/26/2008 : 2:22:30 PM
|
Simple fix would be divorce, yes?
Kind of joke, but kind of now. |
|
|
Rene Viloria
1565 Posts |
Posted - 06/26/2008 : 3:26:09 PM
|
| Take the wife out of the title, but she will need to go counseling, and explain the negatives of doing that! You can do this, but is not advisable, but if this is the only way to go to save the house do it, and buy life insurance... |
|
|
| |
Previous Topic | Next Topic |
|
Search for: 
