Can a person (age 70) w/ bad credit and multiple refinances on their home be eligible for a reverse mortgage?

My 70-year-old aunt just refinanced AGAIN for a 30-year mortgage. Who expects to be paying at mortgage at 100?



Anyway, after doing some research I have learned that she has refinanced about three times and has bad credit (576 score).



I want to help her figure her way out of this. She said her son and her adopted son (who is 11) won't want her house when she's gone. So I found out about the reverse mortgage.



With these issues in mind, would she be eligible? Would that get her out of paying her mortgage 100% or only the overall loan amount ($282k), minus the amount the home is worth ($95k).



I know. This all sounds bad, but her 40-year-old son could careless about her affairs, and as her niece I want to see how I can help her out of this mess.



Unfortunately, I learned about it once all the damage was done. Also, if she is a candidate for a Reverse Mortgage, are there any cons to this concept when a house is in shambles and no one wants it once the owner is gone anyway?Can a person (age 70) w/ bad credit and multiple refinances on their home be eligible for a reverse mortgage?
I'll keep it simple.



I couldn't really follow your numbers, but the bottom lines is equity.



There must be a sufficient amount of equity in the home to qualify for a reverse mortgage. As long as she's 62 years old or older and the HOUSE qualifies, then all that other stuff doesn't matter.



Try this calculator to get an idea:



http://www.financialfreedom.com/calculat



I'm not promoting one company or program over another, but this is a quick and easy referrance that I like to use.



Once you see that she qualifies, THEN, you need to decide if a reverse mortgage is right for her.



Good Luck.



P.S. Put a ';Credit Freeze'; on her credit. This way nobody can issue her credit until she is notified (you can put your contact info for notification).Can a person (age 70) w/ bad credit and multiple refinances on their home be eligible for a reverse mortgage?
Sounds like your aunt has some real issues here. With the outstanding loan amount on a house with little equity, a reverse mortgage may not be a viable option.



Her credit is not a factor, and her age is in her favor.



Find a mortgage broker in your area who has experience with reverse mortgages to see if anything can be done for her situation.



I wish you all the best of luck.
I disagree with some theories about age and credit scores. That is not the only criteria that is taken in consideration for loans, and moreover, as the US has shown that inspections %26amp; appraisels are overrated; its the real equity that is KEY to the borrowing of funds against any chattle mortage.

So my answer to a reverse Mortgage is, if the equity is there within the structure %26amp; the enviornment is secure, you will be entilited to a percentage of the value of the home until it reaches its cap.
if she is 70 yr old how dose she owe 282k i would consult an attorney and sue the broker that con her to getting that type of mortgage, forget about the reverse mortgage,

it is base off 26% to 30% of her equity of the home the equity is gone so your out of luck.
Well with that kind of credit and multiple refi's, there's probably no equity in her home. Your numbers didn't make sense to me. She's paying high interest rates with such lousy credit. Try your local senior center for referrals to find some credit counseling and what's out there. She's made a series of really poor choices to get to where she is, and the refi's are only part of it.



If she has no equity or owes more than the home is worth, a reverse mortgage is impossible. Good Candidates for reverse mortgages are those who bought a house, paid on it , paid it off, and need some income while in retirement. The house being in shambles impacts its viability for a reverse mortgage. Relatives not wanting the home once she's gone has no impact on its eligibility, in fact is good, as the home will be sold to pay off the reverse mortgage.