AboutYan Ross Expertise Reverse Mortgages are a financial tool available to homeowners of the age of 62 or older. They are not for everyone. Mr. Ross provides responses to questions regarding eligibility, terms, consumer protections, financial requirements, and all other aspects of HUD-sponsored and other private program Reverse Mortgages.
Experience In addition to my legal and general business experience, I have trained with John Bennett, of Home Lending Specialists, the leading and most experienced originator of reverse mortgages in the country. I have mastered both academic and practical aspects of the reverse mortgage business, with special emphasis on consumer protections.
Education/Credentials Author, Certified Home Equity Conversion Mortgage Specialist (CHECMS) course, Institute of Consumer Financial Education (ICFE)
Bachelor of Arts, Princeton University --
Juris Doctor, Yale Law School --
Accredited Educator in numerous professional disciplines
Question My question is... I live in a 16 unit condo complex. I want to know how many condo's need to be lived in and how many need to be rented in order to get a reverse mortgage on my condo that I own?
Answer Crystal,
First, I can't give you a legal opinion, especially not knowing in which State you reside.
However, I can suggest a couple of means to determine the feasibility of securing a reverse mortgage under the circumstances you've provided.
From your question, it appears that there may be a low occupancy in the 16-unit complex, which in turn indicates some potential problems with the developer, other owners, or other related parties. Without speculating deeply on the specifics, it is possible that there may be claims against or liens on the building for work performed and not paid for the overall building complex or common areas. This could have an impact on the ability to sell or encumber an individual unit.
But more important, there are sources for information on the specific condo complex, including (but not necessarily limited to) these:
1. The Home Owners or Condominium association (which would be responsible for the maintenance and operation of the overall condominium) should have records available to the individual condo owners that would reflect the situation.
2. Whether a sale, conventional mortgage, or reverse mortgage is being considered, an inquiry with a title company could shed light on the situation.
3. You might contact a reverse mortgage lender and inquire about the viability of the reverse mortgage under the circumstances. UNDER NO CONDITION should you pay and up-front fee to do so. Lenders often have relationships with title companies that may allow them to access such information at no cost.
I would start there, and see what success you have.
If none, you may come back for a follow-up question.
BTW, I should also note that it's important to make an informed determination that a reverse mortgage is appropriate for you under all your financial and health and life circumstances. You might want to check with a Certified Home Equity Conversion Mortgage Specialist (CHECMS), a credential provided by the Institute of Consumer Financial Education (ICFE), where I serve as Director of Special Projects.
