Tip #6 – MORTGAGE STATEMENTS
Have you provided the Mortgage Statements? Is your recollection of the balance of the unpaid mortgage correct? The amount of the RM loan that you will be able to access depends on the amount of the existing loan that has to be paid off first. Although the Escrow Officer will request a payoff statement, all lenders require the complete loan number and your social security number before releasing the figures to escrow. The loan number that is reported on the credit report may not be complete. Always have copies of the current mortgage statements available upfront.
Tip #7 – IDENTIFICATION
Some senior citizens may have problems with proper identification cards. This is a question for the Loan Officer – have you seen the most recent Driver’s License or Identification card? To avoid delays, the senior citizen should make available copies of their current driver’s license or identification card or passport. Check the expiration date. The names on the identification documents must match the loan application form and particularly the name showing on the preliminary report (see Tip #2). When it comes time to sign the final paperwork the Escrow Officer, as well as the Notary Public, must ascertain that the same name appears on the documents as it does on the ID.
What happens if there is no identification, or the identification does not show the name the way it should? The Escrow Officer must further discuss with the Lender and the Notary Public whether arrangements need to be made for credible witnesses to be on hand when documents are being notarized.
Tip # 8 – COMPETENCY OF BORROWER
Is there a question regarding the competency of the Borrower? Is there a Power of Attorney to be used? If the homeowner is mentally incapacitated and a third party will be using a Power of Attorney to sign the loan documents for him, inform your Escrow Officer immediately when opening escrow. The Escrow Officer will ask for the original signed Power of Attorney weeks before closing to make sure the document is prepared correctly.
If the property in held in a Trust, and the Trustee is incompetent, usually the Trust Agreement will state who can act on their behalf as the acting trustee. One or even two doctors’ letters to state the mental incapacity will also be needed. It is doubly important to provide the Trust Agreement immediately upon opening of escrow. Upon review, the Escrow Officer must inform the Borrower as well as the Loan Officer if more documents will be required.
Please note: if the property is held under a Trust, the Power of Attorney is not allowed unless specifically stated in the Trust Agreement. In cases like this, the Successor or Surviving Trustee must sign on behalf and the doctors’ letters will be required.
We look at each Borrower and each transaction on its own basis and a careful analysis done at the opening of the transaction. Nothing is too small or unimportant for our attention. Providing the necessary information and working together with us will enable a smooth transaction. A Reverse Mortgage may be the most important decision you make to enable your years as “golden”!
You have questions? We have the answers!