Hell or High Water and Reverse Mortgages

Elderly Man with Reverse Mortgage Form

Hell or High Water is My Top Pick

The movie Hell or High Water was nominated for the Oscar Award, but lost first to La La Land and finally to Moonlight. It still is first in my list for the year.

In the movie, two West Texas brothers rob banks so that they can pay off a bank loan made to their Mother.

Later in the movie, it is revealed that the loan is a “Reverse Mortgage” and of course the writer takes poetic license with Reverse Mortgage facts to make a point.

Side Note: the writer also wrote Sicarrio, a great movie from last year about Drug Wars on the Mexico Border.

When does a Reverse Mortgage
have to be paid off?

#1- When the last borrower on the loan dies?

#2- When the borrower leaves the property for over a year?

#3- If the borrower wants to sell the property because it has gone up in value?

#4- If the borrowers do not pay property taxes, insurance or maintain the property?

#5- If an heir wants to pay off the property, they have 6 months to do so and can request two 90 day extensions.

#6- An heir will never have to pay more than 95% of the value of the home.

Remember the Mother’s Situation

The mother had already received funds from the bank during the last years of her life.

The bank made a loan insured by the Federal Government that is strict non-recourse.

This means no one can come after anyone if the foreclosure sale does not satisfy the balance of the loan.

There are never any payments, the borrower does not have to be qualified with a credit check-they have to pass an assessment that is much simpler, no upfront out of pocket costs, and so forth.

In the Movie, the Bank is Very Uncooperative.

So the brothers decide to rob banks, but only banks that own the loan with the scheduled foreclosure date.

Rent the movie, especially, if you have any connection to home owners, home sellers, senior citizens, people over 62 without enough retirement funds, lenders, agents, Texas Rangers, etc.

See you at the movies.

The balcony is closed, so stay at home and watch Jeff Bridges and Chris Pine. Also, watch for the waitress selling T-Bone Steaks.

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