Question: My elderly in-laws have a 1st and 2nd mortgage on their home. Would they still be eligible for a reverse mortgage?
Answer: With Reverse Mortgages, it doesn’t matter how many mortgages have previously been placed on the property. The couple must be at least 62 years old. Actually, the amount of money you might get extended as a reverse mortgage is based upon the age of the couple and the value of the home. The older you are, the more money you can qualify for. This is because you can continue to live in the home for the rest of your life and never have to make a mortgage payment. So, if the elderly couple in the question are more advanced in age, it greatens the chance that the amount they qualify for can pay off both of the two prior mortgages. It needs to because a reverse mortgage won’t be extended unless it will occupy a “first” position.
One of the best things about reverse mortgages is that they are non-recourse. The concept began in 1988 under Ronald Reagan, an oldster himself.
Russell Hodges, Esq., Managing Partner
Hodges Law Firm, LLC
Atlanta, Georgia 30040