Program allows reverse mortgage for a purchase HeraldNet, WA - The move allows older homeowners to make a large downpayment on a new home and then utilize the reverse mortgage as permanent financing. ...
Rockville Centre CPA Ed Slott recommends Roth IRAs Newsday, NY - Dec 6, 2008 They may use the remaining equity on the home to get a reverse mortgage. That can help alleviate the financial burden of the forward, or traditional ...
Reverse mortgages a lifeline for seniors San Diego Union Tribune, CA - Nov 30, 2008 The key to qualifying for a reverse mortgage is having adequate home equity. Generally, using today's interest rates, a 70-year-old borrower can get a loan ...
Give owners 5% mortgage and watch economy thrive Atlanta Journal Constitution, USA - Dec 4, 2008 Additionally, banks should reverse all late fees and penalties, and give homeowners until the end of 2009 to make their loan current by catching up on any ...
Medical Bills Add to Pain as Firms Fail Wall Street Journal - But that does nothing to help reverse the havoc caused by the sudden loss of insurance. A growing number of people are facing this issue as their employers ...
Secure, but worried: Retiree's anxiety misplaced Globe and Mail, Canada - Dec 6, 2008 "Will I have enough to live on or is there a way, perhaps a reverse mortgage, to access the capital in my house?" Facelift asked fee-only portfolio manager ...
Source: Google News
Recent News and Articles on the Keywords: reverse mortgage + reverse mortgages + reverse Related to the article below (Last Update: 8/4/2008)
THE THIRD AGE Columbia Daily Tribune, MO - Reverse mortgages are available to homeowners age 62 and older and allow these clients to use their home equity without having to meet income requirements, ...
Reverse mortgages: Bad rap or bad idea? San Francisco Chronicle, USA - Jul 31, 2008 "He's coming to assess my house for a reverse mortgage." "A reverse mortgage telemarketer?" I blurted. "You invited him into your home?" He waved me off. ...
Seniors Get a Gift from the New Housing Law Kiplinger.com, DC - The maximum amount for a reverse mortgage has been upped nationwide by more than a quarter of a million dollars, to $625500. That flat limit replaces the ...
A reverse mortgage lets your home pay its way Jerusalem Post, Israel - Jul 30, 2008 According to Amnon Mader, general manager of reverse-mortgage specialists Bayit Maniv, "An apartment or a house are the only assets an elderly person owns ...
Is a reverse mortgage right for you? Marketplace, CA - Aug 2, 2008 Another change from the new housing bill: Easier and safer reverse mortgages for America's seniors. Still, it's a better option for some homeowners more ...
Reverse Mortgages and the Liquidity of Housing Wealth - CJ Mayer, K Simons - Journal of the American Real Estate and Urban Economics …, 1994 - papers.ssrn.com ... estimates show that over six million homeowners in the United States could increase
their effective monthly income by at least 20% by using a reversemortgage. ...
[CITATION] The reverse mortgage as an asset management tool DW Rasmussen, IF Megbolugbe, BA Morgan - Housing Policy Debate, 1997
Preliminary Evaluation of the HECM Reverse Mortgage Program B Case, AB Schnare - Journal of the American Real Estate and Urban Economics …, 1994 - papers.ssrn.com go to Document Delivery Paper Stats: Abstract Views: 1150 Downloads: 0,
Preliminary Evaluation of the HECM ReverseMortgage Program. ...
Reverse Mortgages: Contracting and Crossover Risk - P Chinloy, IF Megbolugbe - Real Estate Economics, 1994 - Blackwell Synergy ... A pricing model is developed for a reversemortgage contract where the borrower
receives payments either as a lump sum or in an annuity while the loan balance ...
Reverse Mortgages and Borrower Maintenance Risk - TJ Miceli, CF Sirmans - Real Estate Economics, 1994 - Blackwell Synergy ...ReverseMortgages and Borrower Maintenance Risk. Thomas J. Miceli* and CF Sirmans**. ...
1993. ReverseMortgage Programs. Benefits Quarterly 9:29-38. ...
[CITATION] The Reverse Mortgage Market: Problems and Prospects A Caplin - Zvi Bodie, Brett Hammond
Source: Google Scholar
Can a reverse mortgage be used to buy a home?
By Bob Bruss
August 10, 2006
DEAR BOB: I heard there is a way to buy a house or condo with a reverse mortgage and not have to make any monthly mortgage payments. Is this true? Is this a way for a senior citizen to buy a retirement home? --Mr. L.M.DEAR MR. L.M.: Yes, a "reverse mortgage for home purchase" is available from Fannie Mae. The two other major reverse mortgage lenders, FHA and Financial Freedom Plan, do not offer these special reverse mortgages.Purchase Bob Bruss reports online.A reverse mortgage for home purchase usually requires a large, cash down payment, typically around 50 percent of the purchase price. The balance is funded from a reverse mortgage.
Such a reverse mortgage is ideal for the purchase of a retirement home where you obtain the down payment cash from the sale of your former residence. Of course, you must be at least 62 to qualify. Details are available on the Internet at www.reversemortgage.org. Look for Fannie Mae reverse mortgage originators in your state.
DON'T RUSH TO SELL HOME IN YEAR OF SPOUSE'S DEATH
DEAR BOB: My wife passed away recently. If I sell our home soon, can I take the $500,000 principal residence sale tax exemption, or am I limited to just $250,000? You often mention "stepped-up basis" for tax purposes. How does this affect my situation? --Berton McC.
DEAR BERTON: There is no need to rush to sell your home. Take your time to adjust to your new situation without your spouse.
If you decide to sell in 2006, and your wife died in 2006, presuming you and she both occupied the principal residence at least 24 of the 60 months before its sale, and at least one of you held title for that time period, Internal Revenue Code 121 allows you to claim up to $500,000 principal residence sale tax exemption. That presumes you file a joint tax return in the year of your late wife's death.
However, if you don't sell the home in 2006, you will probably come out just as well or better thanks to the "stepped-up basis" rule for inherited property. Presuming your wife held title to 50 percent of the home and you inherited her share, your new basis becomes the market value for that half on the date of her death, plus your original basis for the other half.
But I notice your letter is postmarked from a community property state. If the home was community property, then you get a new stepped-up basis for 100 percent of market value on the date of your wife's death. Please consult your tax adviser for exact details.
WHAT IS EASIEST WAY TO ADD A CO-OWNER TO TITLE?
DEAR BOB: Please tell me the best and easiest way to add a co-owner to the title to my home? --Fran G.
DEAR FRAN: The easiest way is to sign and record a quitclaim deed from yourself to yourself and the new owner. Be sure to specify on the deed how you want to hold title, such as tenants in common or joint tenancy with right of survivorship.
Please consult a local real estate attorney to discuss the possible tax and legal consequences. If you decide to proceed, the attorney can then prepare the quitclaim deed and have it recorded.
The new Robert Bruss special report, "Pros and Cons of Today's Five Best Real Estate Profit Opportunities," is now available for $5 from Robert Bruss, 251 Park Road, Burlingame, CA 94010 or by credit card at 1-800-736-1736 or instant Internet delivery at www.BobBruss.com. Questions for this column are welcome at either address.
