Getting out of my reverse mortage
How can I get out of the reversed mortage. if I sell my house I won’t have enough to purchase a house, the balance is quite high.
I’ve had the house estimated (guesstimated) and it’s close to the balance. The house is pretty good size and the property is also. The upkeep is rapidlly draining what funds I have left.
I’m 84 years old and have done okay, I’m still able to do what’s necessary, but need your advice.
Thank you
Terry Says
That is THE problem with a reverse mortgage. It eats away at your equity very quickly, because of the high interest rate and fees. So while it lets you stay in your home, you still have to pay for property taxes, insurance, and upkeep. As long as you can pay the ongoing expenses, they will keep sending you the monthly check.
So then, when you are ready to sell, you have little or no equity left! You must pay off the loan first.
And that’s where you are right now. You need to find a good realtor, and get what you can for the property. Then start living on your Social Security and savings. If you have little in the way of assets, there are many state aid programs for seniors –to help with everything from rent to food. You’ll want to look for subsidized senior housing.
But I urge you to deal with this now — before you accumulate debt in either paying the utility bills and taxes, or dealing with a repair issue. The good part of a RM is that you can never owe more than the house is worth! But the downside is you are required to pay those other expenses or they can force you to sell.
