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Personal Finance (Not Investing) • Re: Understanding My Mother's Reverse Mortgage Situation

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my folks had a RM and when the surviving spouse passed, the process was rather simple. Since the RM was approved/backed by HUD, they had to follow the federal rules. When I called to inform them of my dad's death, they sent me a letter and package in about 3 weeks laying out three options: 1) sell the house, and pay off the mortgage balance; 2) keep the house, and get a new mortgage (or pay cash) to replace the RM; or, 3) give them the keys, sign over the deed, and walk away.

Dad;s net equity was about 50% of the value, so we chose #1.

Dad's docs did not allow for borrowing to exceed xx% of equity, so no way he coudl have borrowed up to 100%.

Statistics: Posted by Big Dog — Thu Feb 06, 2025 8:51 pm



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