Reverse Mortgage

I have been reading lately about the downward spiral in RE, and financial problems we are all facing, especially the older generation.

Does anyone out there hold a 'reverse mortgage' and is it handled any differently in an association than if a bank holds a 'regular' mortgage on the unit?

JoeW: Thanks for your note. It is a possibility we want to keep in mind for way in the future!

Homeowner can not sue for age discrimination, as these are sanctioned by HUD. Only allowed on primary residences for age 62+. If owner has a first mortgage already, it must be satisfied (paid off) by the new reverse mortgage so reverse is in first position. Owner retains title. Owner allowed to borrow different percentage loan to value based primarily on their age. The younger you are, the less you can borrow, based on the theory that you will live longer and borrow a larger portion of available funds. Several payment options to homeowner, lump sum, installment. Owner is borrowing equity from their home with no payment required until they sell or they expire. No mobile homes allowed. Excellent way for senior to supplement their cash flow in senior years with fixed incomes. When home is sold, amount borrowed paid back to bank, and remaining equity goes to heirs. Greater dollar up front fees, so more costs involved than a standard mortgage with monthly payments. Good credit scores still required, affects loan to value borrowing as well.