1. Why are there 2 Deeds of Trust? The first Deed of Trust represents your lenders lien on the property. The second represents HUD as they assumes the second position because HUD is insuring the homeowner will continue to receive loan payments in the event that the lender becomes incapable of making these payments.
2. Can the I add/remove persons from title after the closing? Consult your loan officer first! The loan amount is based on the borrower's age, life expectancy, and value of the home. Changing title can make the loan become due.
3. Why is the loan amount on the Deed of Trust more than the maximum lending limit ? Since there is no maturity date on the loan, HUD has calculates the loan amount by increasing the amount on the deed of trust by 1.5 times the maximum claim amount or appraised value, whichever is less.
4. Why is a Mortgage Insurance Premium collected? A mortgage insurance premium is collected and paid to HUD because as they are insuring the loan in case the lien surpasses the home value.
5. Why is the title insurance so high? The amount of title insurance on a Reverse Mortgage required is usually the maximum lending limit or appraised value, whichever is less.
Paul Neufeld
Reverse Mortgage Consultant
(913) 645-7874
www.pwneufeld.com
