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Needed, one reverse mtg EXPERT


leaper924s
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I live in Florida. I have a couple of judgements against my homestead. They are both by cred card com's. I need to get the judgements removed so that I can get a reverse mtg. According to fl. law that is permissable with fl statute 222.01. I have talked with 8 rev mtg reps and none, not one, is familiar with the law. One rep told me "that even if that's true that non asset liens/judgements could be removed, I would not be granted the rev mtg funds without paying off the liens, because the funds are guaranteed by HUD which is federal and supercedes state law....... "

I have called and e-mailed real estate attys, but have had no response in a month. I suspect that one of two things is going on; I am completely wrong about the law, or it's too simple for an attorney to bother with.

I can file the form, 222.01, myself; it looks simple, but can't fill out the section that asks for reason, name of financial institution making the loan, contact person and file number, because the rev mtg co's won't proceed by my ground rules; i.e. do not pay these non asset judgements.

Any advice would be appreciated. I live in zip 34481.

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I am not an expert with reverse mortgages, but I can tell you that all liens will be settled when the loan closes. FHA will own the home and you will either receive income (with enough equity), or live there and pay interest from the balance remaining from your home, or both.

FHA is basically buying your home, and will want free and clear title. If you can get the liens removed, then you will not need to pay them to close.

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RE:fl. 222.01

This won't get your judgments removed, it will protect you from ever being forced from your home. It won't help the person doing a reverse mortgage

Here is why.

With a reverse mortgage you are borrowing from the equity in your home while you are living in your home, not having to wait until you sell. There are different variations, but generally you can get paid until you are 100 (or 150 if you want that program) and live in your home without making principal or interest payments.

Once a "trigger event" happens, then the bank offers your home to your heirs (for 95% of the current value) and if none of them wants it, they sell your home. The trigger events are that both borrowers (if a husband/wife or mother/daughter or etc) have died or they have both gone to live in a nursing home.

At that point the bank can not have any open judgments against the title that they have to clear up.

Charles

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Yes, the judgment is there, it just can not be used to forclose on your property.

If you are going to get a homestead exemption to protect your property from being taken away from you and not getting the reverse mortgage, then I think it would be wise. I don't know what the costs are of course, but the basic idea is a good one.

Charles

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