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Is it a good time to buy a house before we sell ours,? We have a reverse mortgage?

Asked by , Thu Oct 23, 2008

We have a reverse mortgage in NYS. My husband is going to retire soon and we want to move to Florida where the market is ripe for buyers. We have IRA's and 401K and a excellent credit rating. The IRA's and 401K took a hit during the downturn recently, but we are still okay, I think. I'm going down to Florida to look at houses soon , preferrably in an adult community or at least with little or no maintenance. We would take a small mortgage and there may be HOA and other fees involved. We don't have many monthly bills, our biggest utility bill is Cable TV and heating oil. I don't know if we list now or wait till spring. The market is right to buy now, but we wouldn't want to carry two houses.

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Lender suggestion:

If you have a Reverse Mortgage on your home in New York, and plan to move to Florida, there are a few special considerations. I recommend that you speak with a local Realtor as well as a Florida Realtor, and that you speak with your Reverse Mortgage lender before making a decision.

First item: If you move out of your New York home permanently, you will be required to repay the Reverse Mortgage whether or not you sell the home.

Second Item: HUD will shortly announce initial guidelines for a Reverse Mortgage Purchase Loan product (hopefully right after Nov 1). I suspect that a Reverse Mortgage purchase will require a large downpayment (depending upon the lower age of you or your husband), and HUD would probably permit you to use the proceeds after paying off the Reverse Mortgage on your New York home towards the downpayment on a Reverse Mortgage for your new Florida home.

It might make sense to use a Reverse Mortgage to buy the Florida home. Of course there's no way to tell until the new guidelines from HUD are released, and as always seniors must consider the steep costs and negative amortization of a Reverse Mortgage... but it miht make sense in your situation.

You'll need the advise of the two Realtors and your lender to be sure.
1 vote Thank Flag Link Thu Oct 23, 2008
There are a few things I would need to know before advising you at this point like; where is your home in NYS located? If you are in the $400-$800K neighborhoods it would be a lot risker than if you were in the $200-300K range or lower. You can call me direct or e-mail me. If you are in the Buffalo-Niagara region of Western New York we can discuss it further and look at all of the options. There is enough inventory in many parts of Florida to choose from when your home sells. What area are you looking to move to?
Joe Jorrentino
Associate-Broker
MJ Peterson Real Estate
716-998-5637
Toll Free: 888-807-1715
e-mail: joe@joesorrentino.com
Web Reference: http://joesorrentino.com
0 votes Thank Flag Link Thu Oct 23, 2008
Imtracey,

Our sons lives in the Buffalo area and we'll be heading to Buffalo next week for the birth of a grand baby. We have one in Wheatfield and one in Orchard Park. But on to your question......

It's our opinion that any time is a good time to invest in real estate as long as it's your ideal home, located in your perfect location, and offered at a price you can't afford to walk away from. As you have mentioned, there are plenty of opportunities available. one location we would like you to at least take a look at is the North Port, Englewood, Port Charlotte locations. There are many new or nearly new homes in these communities that are priced in the $70,000-$90,000 range. These are beautiful homes that require only a buyer. With prices this low, it's unrealistic to believe they will go much lower.

If you would like to see some sample properties from these locations or require additional information, we would be happy to hear from you. Call or email and we'll get right back to you.

Hope to hear from you.

Go Bills

Susan & Bill Eckler, GRI
Michael Saunders & Company
billeckler@michaelsaunders.com
941-408-5363

2008 Five Star Award for Outstanding Customer Service
0 votes Thank Flag Link Thu Oct 23, 2008
I have never seen Florida homes priced so nicely.

You can buy a 2nd home in Florida without sacrificing your primary residence in order to keep your reverse in place.

You can also make the sale in Florida contingent on the sale of your New York property.
0 votes Thank Flag Link Thu Oct 23, 2008
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