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Not all banks offer what is reverse mortgage
After adjustment for the Reverse Mortgage Act 41/2007 on Modernization of the mortgage market, the fact is that the way to implement this product has been very consistent on the part of financial institutions and insurance companies who have chosen for their development. See also (La Crisis Increasing Annuity Contract and a reverse mortgage from seniors)
Thus, and according to the standard, this is a home equity line where parents get regular provisions (and any time the market the option of paying a single amount), and where the accumulated debt is needed only for the beneficiary’s death. Very similar also other conditions: a fixed interest rate over the claim, supporting the provision of the original amount by way of advance, and the possibility to hire an insurance guarantees payment of monthly expenses for living.
This homogenization conditions and media coverage that has existed in recent years has led to Seniors go to the Supreme Court demanding hire a “reverse mortgage”, but the products offered there may be some cases of variations on the general condition that the parents think that they always apply.
In this case, Carlos A. Martinez Cerezo, the President said the retreat GROUP mention to be made to the Pension Mortgage is a financial institution that gives people more credit for an amount equal to the percentage of the appraisal, generally about 70% – 80%, automatically engage with the value of an insurance annuity that guarantees payments plus monthly interest payments.
The biggest difference in this case is that the mortgage debt early retirement from reaching the maximum value, compared with a reverse mortgage where the debt is increasing because of the amount available.
It is also changing the tax treatment of payments. The amount to be charged, this product may be more attractive than in the Reverse Mortgage if contracting is a very advanced age, but we must insist that the debt to the beneficiary will be the higher baseline. Some entities marketed two modes, the Reverse Mortgage and Loan Board, while others work only the latter creates confusion.
It is also interesting to note the different treatment that we can know whether a Reverse Mortgage engaged in a second home, because although most of the entities that support all they do is not obliged to apply the tax exemption for ordinary housing, others in this situation requires you to back to life after debt generated after the loan period.
Another important warning is that when each institution was asked to sign the kids just as knowledge, there are others that require the involvement of children in the operation as a guarantor with their own property, “save” statutory provisions that define “creditor can obtain only limited recovery estate assets.”
In the years where he was marketing this product, has demonstrated a serious lack of knowledge was by the branch network of different financial institutions, which affects the information moved to the Elderly in many cases not clear enough, which causes the confusion that can no longer be completed after finalization credit.
This is why it is very important given the momentum of an independent consultant, who split with the entity, giving parents the information professional and impartial at all the opportunities available in the market, like institutions as a group to remove more than 15 years specializing in Integrated Heritage Real Estate Parents seeking the best solution for every situation.