QUESTION
Would having a possible credit card judgment pending affect her chances of getting the reverse mortgage?
Asked on Jan 28th, 2014 on Estate Planning - Texas
More details to this question:
My mother is thinking of getting a reverse mortgage. I am not on the deed to house.
9 ANSWERS
2 Awards
I don't know.
Answered on Feb 06th, 2014 at 12:42 PM
If the judgment has been reduced to an Abstract, it would then be a lien on the house and the debt would have to be paid out of the reverse mortgage proceeds.
Answered on Feb 04th, 2014 at 9:17 PM
Edwin K. Niles
Reverse mortgage are generally a bad idea. Make sure she knows what she is doing. Yes, debt would have an effect.
Answered on Feb 04th, 2014 at 9:16 PM
Commercial Attorney serving Chicago, IL
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Ashcraft & Ashcraft, Ltd.
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The credit worthiness of the applicant will always affect loan qualification. This does not mean the loan cannot be obtained. It may be that the lender will want funds withdrawn under the reverse mortgage to pay off the credit card judgment.
Answered on Feb 04th, 2014 at 9:16 PM
Trusts Attorney serving Sacramento, CA
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Law Office of Victor Waid
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You need to talk to a lender agent who specializes in reverse mortgages to answer your question as to whether an outstanding judgment will affect her loan application.
Answered on Feb 04th, 2014 at 9:15 PM
Commercial Contracts Attorney serving Boise, ID
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Peters Law, PLLC
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Sure, it could affect it. She needs to talk with the reverse mortgage people.
Answered on Feb 04th, 2014 at 9:15 PM
Business Planning Attorney serving Livonia, MI
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Frederick & Frederick Attorneys at Law
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Yes, it would almost certainly have an impact. Your mother really should see an estate planning attorney to determine how best to proceed.
Answered on Feb 04th, 2014 at 9:14 PM
Appellate Attorney serving Grosse Pointe Farms, MI
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Musilli Brennan Associates, PLLC
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I would suspect that your mother will be asked to pay off the credit card judgment as part of the conditions for the reverse mortgage. She should speak with an attorney.
Answered on Feb 04th, 2014 at 9:14 PM
2 Awards
In theory, it shouldn't, as judgment liens typically don't attach to homestead property. In practice, title companies are reluctant to issue title insurance (required for a reverse) if there are judgments. You might consider trying to settle the judgment lien prior to applying for the reverse.
Answered on Feb 04th, 2014 at 9:11 PM