Reverse mortgage possible when title’s held in trust

Reverse mortgage possible when title’s held in trust,

What lender requires before loan is recorded

DEAR BOB: To avoid probate costs and delays when I pass on, I recently created a revocable living trust and deeded my condo title into it. I am 62 and plan to get a senior-citizen reverse mortgage in about eight years when my current interest-only mortgage converts to an amortized mortgage. Does having the condo title in my living trust prevent my getting a reverse mortgage? –Alan W.

DEAR ALAN: No. As long as you have sufficient equity in your principal residence, holding title to it in your revocable living trust won’t prevent you from obtaining a reverse mortgage.

However, the reverse-mortgage lender will ask you to take the title to your home out of your living trust momentarily so the reverse mortgage can be recorded against the title.

After that is done, you can then have the attorney or title company re-deed the title back into your living trust. It’s a bit confusing but is done everyday.

Found here.

Full post here Reverse Mortgage Loan Blog

Written by News & Feeds on September 14th, 2007 with comments disabled.
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