Move Forward With the REVERSE Mortgage Loan!
The connotation of doing anything in REVERSES turns off a lot of folks. The reverse mortgage loan allows for no monthly mortgage payments. The borrower must make property tax and insurance payments and pay for the cost maintaining the property. Please note, failure to comply with the loan terms may result in the loan becoming due and payable.
The concept is simple. The mortgage company making the loan waits to collect their interest after the borrower(s) passes or moves out of the home for longer than 12 months (as in the case of a nursing home). The deed and/or ownership of the home remains in the borrower(s) name until the home is sold, transferred or otherwise is paid off.
One important consideration to remember is that Texas Legislature introduced the Reverse Mortgage Loan as part of the Texas Home Equity Loans. This means that this type of loan is a "non-recourse loan". The loan is designed to always maintain enough equity to pay itself off in the event of sale. If, for some unforeseen reason, the real estate market tanks and the house is worth less than what is owed, the estate would only be liable to pay off the appraised value.
The Reverse Mortgage Loan can be a win-win scenario for the borrower(s). Be sure to ask Armando to fully explain this mortgage loan product and answer any questions you may have.