Tip Sheet for Reverse Mortgages

As a follow up to my post on August 27th, Title Stream has provided me with their tip sheets regarding reverse mortgages and have allowed me to post those sheets here. If you've never had a reverse mortgage signing, these will give you a general overview of how reverse mortgages work and how these packages differ from conventional mortgages.

Both docs are in .pdf format. Anyone who wants them can e-mail me at alex@detroitnotary.com.

The Reverse Mortgage

I had the opportunity to handle several reverse mortgages this week. Reverse mortgages are quite different from the conventional mortgages that most of us are used to handling. Per Title Stream's information sheet, a reverse mortgage is used to convert equity from a borrower's home into cash. Instead of making monthly payments to a lender, the lender makes payments to the borrower (either as an initial lump sum, as a monthly payment to the borrower, as a line of credit or as a combination of these). The borrower must be 62 years of age or older. No payments are due by the borrower. The loan only becomes due when the borrower no longer occupies the property (either by moving out, selling the home, or passing away) and the amount owed can never exceed the value of the home at the time the loan becomes due.

Brenda Stone of Tex Notary has compiled a comprehensive 150 page guide to reverse mortgages. Included in the guide is a quick start section that I personally found incredibly helpful. The guide can be purchased by sending $9.95 to TexNotary@gmail.com via paypal.com. You''ll receive the guide within hours.