Team Michael Keller Williams Palm Springs just sold another property in Merano, Palm Desert. Merano is a small, gated residential community in Palm Desert. This home was a Reverse Mortgage short sale.
If you’re age 62 or older, you can receive money from your mortgage company by borrowing against the value of your home through a reverse mortgage. The payments you receive along with accrued interest and other charges increase the loan’s balance and decrease your equity in the property.
What are your obligations?
Regardless of whether your reverse mortgage proceeds are still available, with a reverse mortgage you are required to:
- Pay property-related expenses on time. Property-related expenses, also referred to as“property charges,” include real estate (property) taxes, utilities, homeowner’s insurance(also referred to as “hazard” insurance), homeowner’s association (HOA) fees, and flood insurance premiums (if applicable).
- Maintain the property’s condition. Property must be maintained in the same condition as when the reverse mortgage loan was originated.
- Live in the property as your primary residence. This must be certified on an annual basis.
Failure to meet any one of, or all the above noted requirements, can result in the loan going into default and can result in foreclosure. In addition, if repairs were required when the loan was originated, those repairs must be completed (and inspected) within 12 months.
If your home is underwater, with a reverse mortgage balance greater than its market value, a short sale could make sense. Short sales have become much more common in recent years. However they are a complex, finicky process and time consuming . It’s always best that you work with a Realtor with considerable experience conducting short sales in particular, to avoid having the deal fall through.
