My mom has passed and left me her home, only problem is she had a reverse mortgage on the home. My fiancee and I live in the home and would like to stay in the home. How do I keep the home?
Thank you for your answers, but isn’t their some kind of creative financing i can find?
Was the home paid off prior to the reverse mortgage? Do you have a decent amount in savings? If so you may be able to just pay back the reverse mortgae, if nto you’ll have to refi for whatever is left on the loan. Check out loanhomeonline.com/findamortgage. I dont have the best credit so had to shop around but taht site helped me find my b of a loan.
How can i get a home loan with bad credit?
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no
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You don’t unless you buy it from the estate or the lender. Reverse mortgages are dicey, and people really should only use them in desperate times when they are very, very old.
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With bad credit you most likely don’t.
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Not sure what RetiredDebtFree’s point is. The person in this case took a reverse mortgage and I’m sure it helped them have a better quality of life until they passed. It worked exactly as intended. Reverse mortgages are not about what happens after, they are about improving the quality of life for seniors and allowing them to spend their equity while they are alive rather than leaving it for someone else to enjoy; they are 100% safe. The person asking the question is not the one that took the RM; It’s unfortunate that the surviving family does not have the credit required to obtain a mortgage to secure the house, but that has zero to do with a reverse mortgage.
As far as what to do to get a mortgage, if you have bad credit; get your score to a 580 to get one with a not so great rate, 620 to get a fair rate, 680 to get a good rate and 740 to get the best rate.
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California Mortgage Loan Officer
Perhaps there is a family member who will pay off the reverse mortgage and hold the financing for you. Otherwise, you will need to leave. People don’t get mortgages with bad credit in this economy.
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let me explain a little bit of what a reverse mortgage is. It is still a loan, however, your mom did not make payments on the loan. So, that loan needs to be paid off. If she had mortgage insurance and it covered death, then the loan should be paid off by the insurance. However, there is still the issue of you becoming the owner. Did she put you on the deed of the house? Did you inherit the house? If the answer is no, then what the bank will do is sell the house to get their money back for the loan. You can then buy the house, since you have bad credit, I don’t see that happening. The other option is whoever buys it could rent it out to you. That is about it. Honestly, I’d start packing. Sorry.
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Did home mortgages for 5 yrs.
Was the home paid off prior to the reverse mortgage? Do you have a decent amount in savings? If so you may be able to just pay back the reverse mortgae, if nto you’ll have to refi for whatever is left on the loan. Check out loanhomeonline.com/findamortgage. I dont have the best credit so had to shop around but taht site helped me find my b of a loan.
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Lenders look at bad credit ratings negatively when applying for a loan.
The only way you will definitely know if you will be able to borrow the money for the refinancing of your mother’s properly would be to apply for a joint loan with your fiancee which may strengthen the application as she may not have a bad credit rating and the lender can then weigh up the pros of cons of the application and thus make an appropriate decision.
If the lender feels that you are able to adequately service the loan they will do a credit check on the application
and the process will go from there and they would then advise you of any concerns regarding the application or what the next stage of the application process will be.
Good luck.
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