Reverse Mortgage Payoff

Reverse Mortgage Payoff2022-11-03T20:48:48+00:00

HCS Equity provides loans to pay off reverse mortgages that have been called due upon the death of the homeowner. We offer the flexibility to manage and estate without being forced to sell assets to meet the terms of the lender. With reverse mortgage servicing firms becoming increasingly demanding on repayment after a maturity event has occurred, it is nearly impossible to get an extension beyond their initial 6 month call date after the death of the borrower. This has caused fiduciaries, trustees, attorneys, and administrators a great deal of stress while trying protect these properties as they work their way through the lengthy trust and estate administration process (especially if there are contentious heirs).

As the real estate market normalizes and marketing times have increased, a short-term loan from HCS Equity to repay a reverse mortgage that is due can provide sufficient time for the heirs to formalize their long-term plans for the property. In addition, HCS Equity may allow the estate to secure additional capital that may be needed to improve the family home and prepare it to for sale at its maximum value.

What An Estate And Its Heirs Need To Know About Paying Off Reverse Mortgages

Elderly homeowners sometimes take out a reverse mortgage or home equity conversion mortgages (HECM) on their home to finance living expenses without the need for monthly mortgage payments.

Upon the death of the homeowner, the reverse mortgage loan immediately comes due, meaning that either the estate or its heirs must pay off the entire loan associated with the reverse mortgage within a short time to keep the property. In some cases, a reverse mortgage was taken out on the home unbeknownst to the heirs.

This can be a big repayment amount if you’re an heir or a family member who wasn’t aware of the reverse mortgage, or being tasked with paying it off. Oftentimes, family members do not have the flexibility or liquidity to pay off the entire balance of a reverse mortgage to the lender in a short time.

A reverse mortgage has strict time requirements for the payoff period after the passing of occupants. A loan from HCS Equity provides the estate with time to find permanent financing for the home.

Additional Benefits Include

  • Competitive interest rates and terms
  • No personal guarantee required
  • Interest-only payments
  • No prepayment penalties
  • No minimum months of interest

FAQ

How long does it take to obtain a loan to payoff a reverse mortgage that is due?2022-10-11T14:21:54+00:00

The process can take anywhere from a few days to a few weeks depending on the reverse mortgage servicing company, and responsible parties of the property/estate. HCS Equity will work closely with all parties to determine the best plan of action to payoff the outstanding reverse mortgage.

Who is the actual borrower on the new loan since the original owners have passed?2022-10-11T14:22:12+00:00

The new loan will be made to the estate or trust unless the property is ready to be transferred to the beneficiaries.

Can the HCS Equity loan be paid off quickly?2022-10-11T14:22:32+00:00

Yes, the new HCS Equity loan can be repaid anytime without any sort of prepayment penalty or minimum months of interest due.

How do I know how much is owed on the existing reverse mortgage?2022-10-11T14:23:24+00:00

The reverse mortgage servicing firm should send a letter to the property address, or mailing address on file indicating the amount due. In addition, escrow will order an official payoff demand right away with the proper authority provided.

How long does HCS Equity provide on its new loan?2022-10-11T14:23:49+00:00

Our loans are typically based on a 1 year balloon, but we can accommodate a longer term if needed.

Who pays for the monthly payments?2022-10-11T14:24:10+00:00

The estate can borrower extra funds up front to pay for future payments so that the beneficiaries don’t have to worry about the monthly payments until the loan is repaid or the home is sold.

Can this loan be used to pay for future property taxes, insurance or upkeep on the property while the estate is being settled.2022-10-11T14:24:27+00:00

Yes, depending on the value of the home and the outstanding loan, HCS Equity may be able to lend extra funds to pay for these additional expenses along with the interest carry forward.

What is the loan sized offered?2022-10-11T14:24:56+00:00

HCS Equity offers reverse mortgage payoff loans from $30,000 to $3,000,000.

Who can sign for a reverse mortgage payoff loan?2022-10-11T14:25:24+00:00

Our loans can be provided to an irrevocable trust, an estate going through the probate process, heirs that have already inherited a property or a spouse that was left the property with a mortgage that is being called due.

Looking To Get Started?

Contact us today for more information regarding any of our loan products. As direct lenders, we make quick approval decisions, and can provide funding in as little as 7-10 days. We are available via phone or email anytime of the day or night.

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Private Loan Process

*This is for illustrative purposes only, HCS Equity does not provide legal advice or services

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