How do I remove my wife from home ownership to get a reverse mortgage, she is not 62 to qualify..I am.?

Question

She is willing to do this in order for us to get a reverse mortgage loan. Will we have to go through a lawyer or can this be done at little or no expense? If I die first she will sell the house and then pay off the loan. Also we plan to make a will leaving her the house, so she will be the owner and will be able to sell , pay the loan and move in with her sister. My question is how to legally remove her from the title in order to start the loan process, without costing us.

Answer 1

You don't indicate what state you are in, but it should be possible to quit claim your wife off the property, do your reverse mortgage, and then quit claim her back on. Not to mention the fact that in many states she would have dower rights even after the quit claim process. This sort of situation takes place all the time and so there should be a well-worn path to follow.

Also, the bank never "owns" a home when there is a reverse mortgage. It's just a lien on the property like any other type of mortgage. If the person with the reverse mortgage passes away then the heirs have the right to refinance out of the reverse mortgage - or if the home goes on the market for sale the proceeds will be used to pay off the reverse mortgage and anything left over goes to the heirs.

Answer 2

You have to do a " quit claim deed". This is a type of deed where a grantor, a person who owns an interest in a property, transfers all his interests to someone else. The grantor offers no guarantees about the title to the recipient, who is called the grantee.

A quit claim deed is often used to clear up problems with a title or when someone wants to use a simple method to give up all interests in a property.

You can find simple "quit claim deed" forms online for as little as $ 20.00 and you get them notarized for a minimal fee. However, you have to first ask the lender who's processing your mortgage if they have a waiting period after you process the quit claim until they can do the reverse mortgage in your name.

Sometimes, states have different procedures for this also. The loan officer who's processing your loan should be able to assist you with these questions. If not, please feel free to email me and I will be happy to assist you.

Best of luck.

Answer 3

It's definitely not recommended to do this, since your wife will basically be homeless when you die.

But, if you think you have this covered, you need to speak with a real estate attorney. Marital rights vary by state, so I don't think you can get a real solid answer on here without knowing that, and even then, no way to know if it's the right answer.

But a good local attorney should be able to get this done for maybe a couple hundred bucks. It's not that much, and is probably the only way to do it.

Answer 4

You must seek legal help. 62 is awfully young to be doing this. What if you live to 85? Better seek some professional planning or your wife may be destitute when you die or vice versa.

Answer 5

You missed something. There will be no "she will sell the house", she won't be able to sell it. It will not belong to her at your death, but to the bank.

This is not a very good idea. You can't will her the house, look at the contract again, you are not understanding it correctly.

Answer 6

donno