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Still Waiting for Reverse Mortgages for Co-ops

By Michael Pinter

Mortgage and Lending with First Meridian Mortgage

June 25, 2009 04:14 AM

I know I've posted about this before, but it has now been almost eight months! since the government announced that the Federally Insured Reverse Mortgage, the Home Equity Conversion Mortgage (HECM) would be allowed for Co-ops and we still have no idea when thsi will actually be put into effect.

This may not apply to most of the country, but here in the NorthEast, it is becoming a big problem. Teh problem is that a lot of borrowers (I have about a dozen) got caught when all of the propietary (Jumbo) Reverse Mortgage products that allowed for Co-ops, stopped last year and they are still waiting fo rteh HECM to rescue them.

Hopefully, we'll hear something soon.

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Anonymous

Michael

Any updates on reverse mortgages for Co-ops? I've got an immediate need in the city and am not finding any solution.

Mar 16, 2010 04:24 AM

Mar 16, 2010 04:25 AM

Michael Pinter

First Meridian Mortgage - Brooklyn, NY

I've got two dozen clients with immediate needs. The only option right now is a bad program from Bank of America that gives about 20% of the appaised value. It is now over a year and half since HERA was passed and we are still waiting for HUD to get this going.

Mar 16, 2010 06:37 AM

Shelly Ellman

My co-op is all paid for, no mortgage, but we have an immediate need for income stream. Our home is all we have to draw upon. I have written and called HUD for the past year, first I heard it was coming last year and now was told in May. May is here and the story is that MOrtgagee letter has to be re-written again and there is no time frame. HUD does not care about helping seniors stay in their home if they have a co-op. This is so unfair that we are being penalized. What can we do?

May 26, 2010 01:43 PM

Shelly,

You are far from alone. I have a list of DOZENS of people in the same situation that you are in. In defense of HUD, Co-ops are far less than one percent of the properties out there (almsot all in New York) and they have no idea how to lens on the,. Having said that, TWO YEARS is way too long to wait to implement this. Let me knwo if you want to be added to my list of people who are all in teh same boat as you.

May 27, 2010 02:50 AM

Still Waiting for Reverse Mortgages for Co-ops

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