Reverse Mortage question?

Question

Am having one home in Calif foreclosed on.Will it affect my being able to go reverse mortgage on house # 2 also in California?

Answer 1

To get a reverse mortgage you have to be at least 62, owe very little on the home, & it must be your primary residence.  They have very high costs associated with them.  If you move out, it has to be paid back.  That could mean several different things.  If you move into a nursing facility or decide to rent it out, be prepared to pay it back.

Answer 2

I'm not sure, but can you transfer the 2nd house to a relative to be on the safe side? Just a thought.

Answer 3

You will pay a higher interest rate on #2.  You have become more risky. /

Answer 4

Do you otherwise qualify for a reverse mortgage?

Answer 5

Ruben,

            Your credit should not affect your ability to obtain a reverse mortgage in California or anywhere.

             Notwithstanding, here in Southern California property values are in a free fall. The amounts of money offerred by reverse mortgagors are falling even faster and greater than sale prices. No one wants to accept any risk. Prices are predicted by the UCLA Anderson School of Managment to continue in decline for at least 12 to 18 more months. The price decline will not even begin slowing until the severely injured lenders start increasing credit and making loans. This is NOT HAPPENING yet.

        Foreclosures are increasingly common and while not a badge of honor, they are not the horrific adverse credit monster, your mother told you about.        

    

         Best wishes.