intogtrog
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Subject: What are the possibilities of getting a reverse mortgage?
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Mon Sep 28, 2009 5:37 pm
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My dad is thinking of doing a reverse mortgage in two week when he turns 55. The home has a tax lien. How would this affect aquiring the loan, if it effects it at all?
When a lender or mortgage company gives you a mortgage against a house, they put a lien on said house.
They usually will not do the loan unless their the first lien. If thier is already a tax lien on the home, the mortgage co would be 2nd in line to be paid back if when the property sells, so they will treat the loan like a 2nd mortgage even though there is no first mortgage.
Being a 2nd loan will make it much harder to get the loan, and translate to much higher interest rates if you do get the mortgage.
With that being said, we beleive they will be not qualified for a satisfactory loan. but IDK. |
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carol
Joined: 27 Jun 2006
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Posts: 1308
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Tue Sep 29, 2009 6:27 am
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Hi intogtrog
Usually a lender will require you to pay off the tax lien with the money you get from a reverse mortgage. Yes, it is a threat to them of course for being 2nd in line to receive payments. To look for loans at lower interest rates, you must do your bit of research. I'm sure you will find lenders willing to offer loans at a comparatively lower rate.
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