Homeowners will be familiar with the term “mortgage,” but not many people will know about reverse mortgages until they need one. These are specific types of house payments for people above the age of 62, who have significant equity built in their property or properties. In other words, senior citizens can borrow against that equity at a reduced interest rate if they need funds that aren’t already included in their fixed retirement income.
For many people, this is the ideal solution for financial strain. But it’s highly recommended to consult with an experienced real estate attorney to fully understand what you are agreeing to. Each state has specific requirements, and a reverse loan with fewer regulations could potentially be a scam.
Read on to learn more about how an attorney from Handin Law can help you understand whether you qualify for a reverse mortgage and represent your best financial interests.
Who Qualifies For Reverse Mortgages?
Age is the first factor in determining who qualifies for a reverse mortgage. You must be 62 or older, so this type of loan does not apply to younger families in a starter home. These senior citizens must also have half the equity with a primary lien, at a minimum. A second lien, even taken out years earlier, may disqualify the homeowner from a reverse mortgage until it is fully paid off. Other existing mortgages must be paid off as well.
Per Florida law, the types of properties eligible for reverse mortgages include condos, town homes, and single-family homes. A real estate attorney specializing in reverse mortgages can help borrowers ensure that they are up to date on homeowners’ insurance and property taxes as well.
What Is A Real Estate Attorney?
This legal specialty deals with sales and transfers of properties and estates. At Handin Law, this type of legal representative helps explain to clients in detail what each contract contains and answers any questions they may have during the transaction. They also ensure that each step follows state and national real estate laws, preventing expensive mistakes made in ignorance. It’s also wise to have an attorney representing your interests should any conflict arise between you and your lender.
Real estate attorneys undergo specific training in order to understand the legal ramifications of property sales. This knowledge enables smooth and efficient transactions that follow state laws and avoid conflict. Additional specializations in this field may include laws applying to deeds, estate planning, titles, zoning, and property taxes. Because these attorneys are licensed within the state they practice, their legal knowledge is specific to Florida. These lawyers may also assist as closing agents.
Why An Attorney Is Recommended For Reverse Mortgages
Borrowers look to reverse mortgages as a way to save money, so it’s understandable why hiring an attorney is seen as an extra, unnecessary step. It’s also not legally required in Florida to have one before proceeding with this type of mortgage. So why have one?
A real estate attorney’s role is to protect your financial interests; the lender’s attorney does not. This means translating complex legal terms in contracts so you fully understand what you are signing up for. A real estate attorney can also explain any obligations that will fall to you regarding taxes and insurance, as well as the impact on your equity and estate. Your attorney can also help guide descendants and heirs to the property on their options after your passing, with regard to selling, refinancing, or managing other debts.
While homeowners don’t legally need an attorney at their side, failure to understand all the terms of the agreement and abide by them could potentially result in foreclosure: every homeowner’s nightmare. Though an attorney does add additional costs to the endeavor, having one at your side will ultimately prevent significant, damaging losses.
Real Estate Attorney In South Florida
The law office of Gary I. Handin, P.A. has represented South Florida citizens in real estate and other matters since 1969. Our law office stands out as the proud owner and president of Florida Home Title Company, assisting with document preparation, title searches, closing attendance, and more. We are also members of the Attorneys’ Title Insurance Fund, which helps reduce risks to our clients. For half a century, the Fund has helped support real estate attorneys by providing accurate and valuable information.
In addition to matters of real estate, our attorneys also specialize in estate planning, wills and trusts, business law, probate, and more. Having the assistance of an attorney for many of life’s ventures can be beneficial in many ways. From minimizing financial risks and liabilities to settling disputes outside of court, it helps to know that someone with inside knowledge of the law is representing your best interests.
If you need help navigating a reverse mortgage or have other questions regarding matters of real estate, call 877-815-4560 to speak with our legal team today.