More details to this question:
we got a reveres mortgage in 2010 interest rate of 5% the amount $185,000 the house was bought in 1964 that is a lot equity we paid off two loans that is the only debt owed was two in the amount of (30,000 and another @ ($65,000 but as of 2015 the managment service says we owe $330,000 so i filed a complaint with the BBB sevice i said how can that be for only five years @5% metlife sold our loannless then five years
1 ANSWER
I have never seen one, but I have read that some reverse mortgages that when the owner either sells the house or moves out permanently, for any reason, the loan becomes due and the lender gets the greater of all amounts the lender has advanced on the loan plus interest, or what the lender advanced plus a percentage of the value of the house in excess of the loan. I have read the such percentage shares can run from 25%-40% and often are 1/3. If your loan were the percentage share type, that might explain the high current payoff amount.
The lender might also have paid delinquent property taxes or current property taxes and insurance premiums, adding to the loan balance and the interest. Some reverse mortgages include a credit line to allow the owner to borrow more money and add it to the loan. Some reverse mortgages provide for monthly payments to the owner, for living expenses. Such additional payments by the lender might explain the high payoff amount.
Carefully read the promissory note, the loan agreement, if there is one, and all the statements. The answer should be in that paperwork.
If you would like to email it to me to review, I expect it will not take me more than an hour, including emailing you what I find out. We charge $300.00 per hour. You can mail me a check for $300.00 and include a copy of the check with the loan documents you email me. You can probably do this yourself.
Dana Sack
ds@sackrosendin.com 510-286-2200
Answered on Jun 24th, 2015 at 1:02 PM