The reverse mortgage is a document by which credit organizations on the key to your real estate existing, take the obligation to pay you a certain amount for some time. This type of mortgage practically does not differ from the usual one, in both of these cases, your property is the pledge in the bank, and you will need to pay certain interest to the bank. The only difference between them is that when concluding a contract with the bank, this credit institution, assessing the cost of your apartment, will decide on paying you an amount that will be 85 – 90 percent of the cost of your real estate. The same amount will be included, and interest on the loan. The difficulty here may be that the bank reserves the right to track the goals on which you want to spend the money taken.
The issued loan will be repaid by the sale of the laid real estate, after the death of its owner. If there is no way to fully repay the loan through the sale of the apartment, the state compensates the difference. It is worth saying that at the time of real estate assessment, employees of credit organizations take into account all the factors that are inherent in real estate, so you can hardly expect to get a return mortgage if your apartment is in an emergency house, while the owner of the housing in The new house in a more or less prestigious area can count on the fact that it will have very decent payments.
Who can be useful in the reverse mortgage
The benefits of her may first of all feel the owners of real estate, who do not have very high wages or pension and there is no other property. The conditions for the return of this loan can be different:
The bank, which issued a return loan, has the right to sell the apartment left as a security. But this happens very rarely. In the case of various economic shocks, the borrower will be protected from the seizure of real estate until at least one of his relatives remains to live, which is registered in this apartment. And also as long as the creditor may pay taxes and other real estate payments.
In our country, the reverse mortgage can become quite popular due to high prices for real estate and relatively small pensions and wages.