“It (the reverse mortgage) really saved me from living in poverty,” she said. So for Walters, a reverse mortgage made good sense. If a borrower has an outstanding mortgage, reverse mortgage proceeds will be used to pay it off before proceeds are distributed, and to secure a reverse mortgage on a mobile home, it must be on a permanent foundation and have been built after 1976, according to Wikipedia, the online encyclopedia.
With a reverse mortgage, however, the loan is not paid off until the borrower dies or leaves his home for 12 months or more, such as moving to a senior-care facility.
“Lots of people coming to us for reverse mortgages aren’t too concerned about their kids. The adult children of many reverse mortgage applicants actually support their parents’ desire for relief, even though a reverse mortgage will mean they won’t inherit a paid-for house some day. Borrowers have a choice of how they can take the funds they get through a reverse mortgage. About 70 percent of her clients take either the lump sum or open the credit line, said Dodge-Taylor, an independent reverse mortgage broker who’s been handling reverse mortgages for the past four years, and has been a HUD-approved lender since 1976.
Financial benefits to borrowers can vary greatly, depending on their age, home value and amount owed. In the past three years, Dodge-Taylor said, three clients have been saved from foreclosure by a reverse mortgage. Reverse mortgage payouts can be customized to meet a borrower’s unique needs. Speaking from his corporate office in North Carolina, John Mlekush, marketing growth and development manager for senior products for Wells Fargo Home Mortgage, provided additional insights into the reverse mortgage phenomenon.
“The number of eligible seniors taking advantage of reverse mortgages is small,” he said. “We call reverse mortgages the fourth leg of the stool of retirement,” he said.
A good synposis can be found in Wikipedia, on the Internet under reverse mortgages.