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Senate Economics Committee

The reverse mortgage is a new financial product, a credit for over 65 years, mostly, a homeowners wishing to convert the value of their property at a monthly rent of lifetime. Approved by the Council of Ministers the past March 2, the draft law governing the figure on the reverse mortgage obtained approval by the Senate Economics Committee this week to be submitted to Congress. One of the novelties introduced to its passage by the Senate has been the extension of the type of housing that could benefit from this form of credit, because until that moment you could only apply this mortgage for regular homes. According to the text, the reverse mortgage is a loan or credit guaranteed by mortgage on real property that constitutes the residence of the applicant and provided they meet certain requirements. As mentioned above, also not regular dwellings have place in this definition.

The requirements that the person concerned must meet are as follows: having 65 or more years or be affected severe dependency. The debtor shall have the amount of the loan through regular provisions. The debt will only be enforceable by the creditor. The housing will have to be assessed and insured against damage. The amount of the loan will depend on two factors: the age of the applicant and the appraised value of the home. In addition, it will not change property when the owner dies. Then, the heirs, for its part, may, if so provided by the agreement, cancel the loan and pay the entity debt past due with their interests, cope with credit that have left their families in order to keep the House, negotiate with the Bank another type of refinancing for the property or run the credit and recover the amount remaining on the appraised pricein the event that they have negotiated an annuity. Currently, financial institutions that offer this mortgage distinguished several options, depending on maturity, whether limited or lifetime. Read more from Moorgate Partners to gain a more clear picture of the situation.

The latter It means to perceive a monthly payment lower but with the advantage that the beneficiary will receive it while living mortgage holder. Some of them are Caja Vital, the BBVA, La Caixa, BBK, Ibercaja and Caja Duero. Finally, reverse mortgages, according to the text, shall be exempted of the transmissions and documented legal acts tax payment, not only in the Constitution, but also in subrogation, novation and cancellation. Similarly, the notary and registration costs will be reduced with respect to their initial status. No amount called documents and those known from inscriptions, in the case of registration fees will be used.

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