Reverse Mortgage:A Chance to Cash in Your Home’s Equity
Reverse Mortgage is a loan arrangement in Illinois, where homeowners 62 years of age or older have a chance to get a monthly payment, or a single lump sum payment, if they agree to turn their home equity into cash. A reverse mortgage is a way for seniors to receive earnings in a situation where they have no other income sources. With a reverse mortgage, seniors can keep their homes and finance their monthly expenses when they find it difficult to make ends meet.
How to Qualify For a Reverse Mortgage
To qualify for a reverse mortgage, it’s essential for the applicant to be 62 years of age or older and have substantial equity in their property. Income statements and a credit score history is not required.
The amount borrowed depends on the age of the borrower – the older the borrower, the more you can borrow. One of the requirements to qualify for a reverse mortgage is you must own the property and have few outstanding mortgage payments.
Generally, the borrower has two options: Take a single lump sum, or establish a line of credit which grows over time – if no money is withdrawn. If you are unsure about how to qualify for a reverse mortgage, talk to an experienced real estate attorney to understand the procedure.
Getting a reverse mortgage is the best financial option for retirees and seniors who are cash poor, but house rich. The mortgage payments will help them maintain their home and meet other everyday expenses. Some of these expenses may include homeowner’s policy payment and property tax.
Title of the House
When you qualify for a reverse mortgage, the lender will not acquire the title to your home. The death of the property owner will not result in the lender claiming title to your home. However, it’s essential to declare heirs who will be liable to pay off the loan before they are allowed to assume ownership of the house. The rest depends on your heirs if they choose not to repay the loan, and then the lender can assume ownership of the house as the repayment for a reverse mortgage.
If you want more information about reverse mortgage, schedule a free consultation with us. Contact Casement Law Group at (847) 888-9300 to speak with an experienced real estate lawyer to help understand your rights and obligations.