7 Comments January 7th, 2009

If I take my name off the deed to my how so my wife can get a reverse mortgage, do i lose everything?

bluesguitar asked:


If I take my name off the deed to my how so my wife can get a reverse mortgage, do i lose everything?

This entry was posted on Wednesday, January 7th, 2009 at 3:19 am and is filed under Reverse Mortgages. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

7 Responses to “If I take my name off the deed to my how so my wife can get a reverse mortgage, do i lose everything?”

  1. aint_no_stoppin_us Says:
    January 8th, 2009 at 9:14 pm

    Yes, to that particular asset. However, as a spouse, depending on state laws, you may be entitled to half of the combined assets.

  2. katlover31 Says:
    January 8th, 2009 at 11:11 pm

    Yes & No…
    Yes you lose the house but,
    No if you live in a community property state you could get 1/2 of all assets.

    Hope this helps :)

  3. sophieb Says:
    January 11th, 2009 at 6:59 pm

    why do you want a reverse mortgage? are you guys elderly?

    Under normal circumstances (say for instance a divorce) If you do a quit claim deed and take your name off the house it still remains on the mortgage until the house is sold but you are no longer involved at all. Under your current circumstances if you take your name off then she gets the money from the reverse mortgage, the money that you both put into the house. Seems to me you’d get nothing. When I did a quit claim deed I got no part of the house itself. If “everything” you’re referring to means do you get to keep your favorite chair, then that’s up to you and your wife to decide who gets what if you’re splitting.

    You need to know how long the reverse mortgage will pay her because if I’m not mistaken it only pays back what you put in (excluding the interest, taxes and insurance) over the years, and then when the payments are done, she’s moving out (both of you are).

    See your attorney if you have questions. Actually ask your attorney if a reverse mortgage is a good idea or not.

  4. coken151 Says:
    January 15th, 2009 at 4:18 am

    it wouldn’t matter because you would not qualify for reverse mortgage as long as you are living in the house. ALL residents of the property that is going into a reverse mortgage MUST be 65 or older. So if you still live there, she won’t qualify anyways

  5. Mortgage Mentor Says:
    January 15th, 2009 at 4:55 pm

    Hi,

    In order to qualify for the reverse mortgage, one should have his/her name on the title to the property. Moreover, all co-owners must have the age limit (62 years or above) as required for the reverse mortgage. But if your name is taken off the deed, you cannot get the loan proceeds even if your wife qualifies for the loan. Also, you cannot retain the ownership rights if your name is no longer on the deed.

    Thanks,

    Mortgage Mentor,
    MortgageFit Community

  6. Byron W Says:
    January 18th, 2009 at 11:11 pm

    The below, from, answers the question pretty much exactly,

    What if one spouse is under 62?

    The short answer is that this means a reverse mortgage is not available on the property. Both husband and wife must be 62 or over. This is only true, of course, if the property is titled in both names, typically called a joint tenancy when between a husband and wife.

    With a reverse mortgage, the loan comes due at the death or permanent move of the person whose name is on the reverse mortgage. The reverse mortgage lender, at this point, will want the reverse mortgage to be paid off. Therefore, the living (or still living there) spouse will be forced to come up with sufficient funds to pay off the reverse mortgage. This can obviously be quite daunting.

    However, a reverse mortgage coming due does not mean the house belongs to the bank or to the reverse mortgage lender. The house merely secures the loan. The lender just wants the money. In fact, they probably don’t want the house anymore than you want to give them the house.

    So ultimately, the person who remains in the house will need to have sufficient funds to pay off the reverse mortgage, or will need to move out.

    First, “the move out.” When the spouse on the reverse mortgage dies or moves to a nursing home, it may in fact be a better option for the other spouse to relocate. The house may be too big, the responsibilities to great, etc.

    Second, “the payoff.” Life insurance and/or long-term care insurance may be the only possibilities. A life insurance policy can be purchased to provide sufficient funds to satisfy the reverse mortgage. In fact, the life insurance can be put in a trust to avoid the probate process, thereby making the funds immediately available for use to take care off the reverse mortgage. The long-term care insurance would need to be substantial in order take care of the care, the bills, and the reverse mortgage.

    Things to keep in mind

    1. The insurance policies must be sufficient to take care of the intended purpose.

    2. It is best to speak with a financial planner and/or insurance agent to make sure your goals get met.

    3. Make sure the terms of the reverse mortgage in general.

    4. Make sure, specifically, you know how long a person being out of the house constitutes a “permanent move.”

    Best of luck in all your endeavors.

  7. kingstubborn Says:
    January 21st, 2009 at 6:16 pm

    You lose claim to the property.