Colorado Reverse Mortgage
Q: "An increasing number of new-car buyers are finding themselves owing more than their trade-ins are worth.
In the car industry, this phenomenon is known as the upside-down car loan, and it has escalated during the car-lending spree of the last three years."
In the mortgage industry a "reverse mortgage" is one where the value of the home exceeds the loan at the time it is made and no loan payments have to be made by the owners, but by the beneficiaries in a Will. I suppose if real estate values collapse below loan values, such loan will be called upside-down reverse mortgages.
Any comments for me???
A: They are called negative equity loans and more common than you think. Believe or not, southern CA was negative equity whrn the defense industry collapsed in the 1990s and the earthquakes scared people away. Colorado is negative equity now too. I understand that in the case of negative equity, the bank cannot foreclose on a reverse mortgage even though no repayments are being made by the owners. In the case of a regular or forward mortgage the bank would probably take foreclosure action if no repayments were being made and the equity was negative .
Most Popular Articles
- Back Pain
- Architectural Engineering
- Computer Course Have Training
- Mechanical Engineering