What is best, keeping hopes and dreams alive that are unrealistic or knowing what is possible and realistic up front? It’s easy to agree that not wasting time, energy, emotions and money on a transaction that is unrealistic is the sensible thing to do.
But it happened again…. A couple came to me after spending almost three months pursuing a short sale purchase on the home of their dreams. The seller’s lender for the short sale finally agreed to their offer and the first reverse mortgage rep assured them their dream home was within reach. After the rep was unable to perform and suddenly didn’t return phone calls, the couple came to me with hopes I could put the reverse mortgage in place. After evaluating the home inspection, I quickly gave them the news that many repairs needed to be completed by the seller prior to close of escrow which was not possible.
Reverse Mortgages are a great tool for purchasing a home. It allows seniors to get more home for their money by providing a large part of the purchase money. Say you just sold your home and have $120,000 in cash available towards your new home but that amount isn’t close to the $300,000 price of the home you really would like to have. Let the reverse mortgage provide the difference. With the reverse mortgage you won’t have any monthly payments and there is no income or credit score qualifications. But before you start making offers, be sure you understand the reverse mortgage guidelines. The home must meet FHA standards or the seller must be willing to bring the home up to those standards prior to close. In the case of a short sale, typically the seller or the seller’s lender is not willing to do repairs. In the previous example, the deal was dead from the beginning.
The moral of this story is, learn the reverse mortgage basics and purchase guidelines and make sure you are working with an experienced reverse mortgage professional who can point you in the right direction from day one.
Maggie O’Connell has been specializing in reverse mortgages for almost 20 years. She is Branch Manager and Loan Officer of American Pacific Mortgage licensed in California and Nevada. Cal DRE #01151456, Nevada License # 45747, NMLS #279499 Phone: (800) 489-0986