Reverse mortgage objective: Allow Paula and Howard (senior home owners) to continue owning this home as their primary residence. Allow Paula to divest herself from his partial ownership of the home and finalize settlement with her ex-husband. Do we have a primary residence or seasoning issue? Can a lien be placed on property by the ex-husband, as a portion of the divorce settlement, and still allow the reverse mortgage to proceed?
From an occupancy standpoint, HECM borrowers need to be living there 12 months, however exceptions can be made provided they are living in the property before application. An LOE would be helpful with the file. Vesting – there cannot be a break in chain. We can take off son, hopefully mom and dad have never been removed, and this would create a break in chain possibly. Any person remaining on vesting must meet HECM requirements, i.e. age, occupancy. Remember with FA the HECM borrowers will need to qualify for the household count (including son in residual and children/grand children living with borrowers). If the soon to be ex-spouse isn’t on title, they will likely need to resolve that issue outside of closing. Since the son is not a borrower, we would not typically require a divorce decree of settlement.