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?