Mortgage Grapevine

Second mortgage or HELOC behind Reverse Mortgage

Looking for 2nd mortgage or HELOC behind a 65 LTV 1st mortgage.
by RI_LOANS April 12, 2005 12:00 AM

Won´t happen. All reverse mortgages place a 99 year 2nd lien behind them to prevent anyone from placing a second mortgage on the property.

If you understand how reverse mortgages work-there is no equity!
by chow April 12, 2005 12:00 AM

Time to sell the home? There is no such animal as a 2nd to a reverse...
by camarado April 12, 2005 12:00 AM

You can do a junior lien to a reverse mortgage, however, I am not aware of any lenders doing them. They have been done in the past.

The reverse mortgage places a first and second lien on the home. The first is to the lender and the second is to HUD. So, a junior lien will be in third place.

The problem is that the reverse mortgage is a negative amoritization loan with no payments and an adjustable rate. That´s why it may be impossible to find a lender.

However, there are no regulations against doing a junior lien. I have had liens subordinate to the reverse many times.

Good luck.

by RevMtgspecialist April 12, 2005 12:00 AM

So, do you mean that you have a lien put in 2nd position behind the lender, and have HUD subordinate to our new lien (and so HUD comes in 3rd position now?)
by RI_LOANS April 13, 2005 12:00 AM

Grasshopper-HUD is in the first two positons. If it is a Fannie Product-they do same.

There-Ain´t no moving the first two liens.

You go in third.

What do you NOT understand? This is a FUTURE VALUE loan on the first. The HELOC or the Schedule is based on usual property values gained over the life of the proposed loan. How long is the owner going to live? People are outliving the loans now, and they have only been around 10-20 years?

Second base isn´t even anything I would consider on these unless the borrower was.... One foot in the grave....No, I´m not even giving up that thought.
by chow April 13, 2005 12:00 AM


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