DEAR BOB: How much in total closing costs should I expect to pay to obtain a senior citizen homeowner reverse mortgage? I hear $8,000 to $9,000 is fair – William P.
DEAR WILLIAM: The exact answer depends on the type of reverse mortgage you obtain, such as FHA, Fannie Mae or Financial Freedom Plan, and the appraised market value of your home.
Purchase Bob Bruss reports online.
As a very general rule, closing costs should be around 6 percent of the reverse mortgage amount. The higher the maximum loan, the lower the cost percentage.
A great new book I just finished reading on this topic is “Pocket Idiot’s Guide to Reverse Mortgages” by Jennifer A. Pokorney. It is available in stock or by special order at local bookstores, public libraries and www.amazon.com for only $9.95. Pokorney answers the many typical reverse questions like yours.
WILL HAS NO EFFECT ON JOINT TENANCY PROPERTY
DEAR BOB: My dad married my stepmother about three years ago. Shortly after marriage, they bought a house together as joint tenants with right of survivorship. However, my dad died recently at the age of 56. His will left all his assets to me, his only child. However, my stepmother says she inherited the house as surviving joint tenant. Who is right? – Jason R.
DEAR JASON: Your stepmother is correct. A written will has no effect on joint tenancy property. For further details, please consult a real estate or probate attorney.
REALTY AGENT AGREES ABOUT LEASE-OPTIONS
DEAR BOB: As a long-time Realtor (26 years) I couldn’t agree more with your recent comments about lease-options. During a slow market, when I have a home listing which doesn’t sell “the regular way” — about three weeks before the listing will expire — I suggest my seller consider a lease-option. I have never been unable to “sell” a house on a lease-option. You are so correct by saying there are always more lease-option buyers than lease-option sellers. Sure, I don’t enjoy waiting a year or two for my sales commission when the buyer-tenants exercises their purchase option, but that’s far better than receiving no sales commission at all. Why don’t you write about lease-option benefits more often? – Daryl H.
DEAR DARYL: Shame on me for not explaining lease-option benefits more frequently. Personally, I’ve been using them for at least 25 years to buy and sell houses, including my current residence. Like you, my experience has been there are always lots of lease-option home buyers if the price and terms are fair.
More details are in my special report, “How to Profitably Use a Lease-Option to Buy or Sell Your Home or Investment Property,” available for $5 from Robert Bruss, 251 Park Road, Burlingame, CA 94010 or by credit card at 1-800-736-1736 or instant Internet PDF delivery at www.bobbruss.com. Questions for this column are welcome at either address. Copyright 2005 Inman News
(For more information on Bob Bruss publications, visit his
Real Estate Center).
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