Yesterday I participated in a Landmark settlement in Frederick County MD. The first Recorded Reverse Mortgage PURCHASE. For everyone involved we learned alot. But the best thing is that we got an 89 year old widow out of her house (which had been broken into 4 times in 6 months) in a crime ridden neighborhood in another county, and into a beautiful condo, in a secure building, in a safe neighborhood in Frederick.
There are some strange HUD requirements that goalong with the Reverse Mortgage Purchase. The seller cannot split the transfer and recordation taxes with the buyer. The buyer has to pay them all. I also do not think that the seller can give a credit for closing costs. (we didn't have closing cost credits so there was no issue for us) Also credits to the seller for fees and taxes already paid connot be on the front of the HUD1 as credits back to the seller.
I am not really sure why these regualtions exist. I just found out about them the day before settlement. (this was a first for the title company too) So agents if you have a client with a Reverse Mortgage Purchase loan make sure that you take into account the fact that they have to pay all the transfer & recordation taxes when making your offer.
This is such a new product and can help so many people that I think it is a great thing. But before doing a transaction with one make sure your title company does the reesarch in advance for any different regualtions in your state. When you see the look of joy on the face of the person you helped it is well worth it.
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