Wisen Smart asked:
My mom is thinking of doing a reverse mortgage in two years when she turns 62. The house has a tax lien. How would this affect getting the reverse mortgage, if it affects it at all? thanks
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My mom is thinking of doing a reverse mortgage in two years when she turns 62. The house has a tax lien. How would this affect getting the reverse mortgage, if it affects it at all? thanks
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Tags: Mom, Possibilities, Reverse Mortgage, Tax Lien
3 responses to What are the possibilities of getting a reverse mortgage?
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As far as I understand you must own the house out right free and clear. I.e. no liens or mortgage etc.
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I believe she will be unable to get a reverse mortgage.
When a bank or mortgage company gives you a mortgage against a house, they put a lien on the house. They usually won’t do the deal unless they are the first lien. If there is already a tax lien on the home, the mortgage company would be 2nd in line to be paid if/when the house sells, so they will treat the loan like a 2nd mortgage (even though there is no first mortgage). Being a 2nd mortgage will make it much harder to get the loan, and result in much higher interest rates if you do get the loan.
On a practical level, reverse mortgages are horrible. Don’t do it.
What are the possibilities of getting a reverse mortgage?
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assuming that ,the tax lien is not so much so that can eat up all her equity,the banks will pay off the tax lien and then set her up for monthly payments based on what ever equity is left. in a simpler word,
if she has more equity than what the tax amount is,she won’t have problem getting it.
What are the possibilities of getting a reverse mortgage?
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