Using a reverse mortgage for a divorce

By
Real Estate Agent with Keller Williams Realty DTC
http://actvra.in/sGN

An unfortunate trend that we are seeing is mature couples getting a divorce. Sometimes the remaining spouse takes out a new mortgage to payoff the departing spouse for their equity or agrees to make the monthly payments. The problem is that many mature people do not have the necessary income, etc. to obtain a new mortgage or the ability to live comfortably after they make the mortgage payment. When you consider selling in a down market, costs associated with selling and moving, etc, a Home Equity Conversion Mortgage (HECM) could be a good option.

 

A HECM is usually utilized as a refinance option to help people, over 62, who have substantial equity in their home live better. More commonly known as a reverse mortgage, it may also be the best option for a couple that is divorcing. The remaining spouse keeps the home and will only have to pay property taxes and hazard insurance. The departing spouse can receive cash for their equity to help them get a fresh start and not be encumbered with a mortgage payment for a property they no longer occupy.

 

All in all, this a win-win option for people in a sad situation. As always, your mortgage professional should take the time to see what mortgage option is best for your unique personal situation.

 

Chip Allen

Crestline Mortgage Bankers

A Division of Universal Lending Corp                                   

Direct: 303.947.2109

Fax: 303.987.0676

Loanchip@hotmail.com

Colorado Mortgage Broker License # 100019831

NMLS# 378621

 

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Topic:
ActiveRain Community
Location:
Colorado Denver County Denver
Groups:
Metrolist®
Tags:
dan polimino
chip allen
reverse mortgage
home selling
real estate market
home equity conversion mortgage
refinance

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Rainmaker
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Joyce Kelley
Charles Stallions Real Estate Services Inc - Gulf Breeze, FL
Buyers Agent 800-309-3414 Pace and Gulf Breeze,Fl.

If I was over 62 and made that far I believe I could live with the SOB and get his SS and retirement benefits, but I be damn if I would be paying him to leave. LOL

Feb 09, 2012 07:54 AM #1
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Rainmaker
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