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Reverse mortgage off grid "non-conforming"


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#1 IMPuzzled

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Posted 28 February 2013 - 07:47 AM

I'm 66 and I've just built a home valued at approx. $650,000.00 with no mortgage or debt. I'm trying to apply for a reverse mortgage, but I'm being turned down because I'm "off grid " although I have a state of the art generating system. I've been told I'm "non-conforming". Am I being discriminated against and do I have legal recourse?

#2 pg1067

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Posted 28 February 2013 - 07:54 AM

I've just built a home valued at approx. $650,000.00


Who says it's worth $650k?


Am I being discriminated against


Obviously. However, in the event you are not aware, most discrimination is perfectly legal, and nothing in your post suggests you are being discriminated against for any unlawful reason.


do I have legal recourse?


I have no idea because I have no idea what you mean by "off grid" and "non-conforming." Care to clarify that?

#3 IMPuzzled

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Posted 28 February 2013 - 07:59 AM

Off grid means simply that I'm located beyond a community power supply. Non- conforming is the excuse I've been given by representatives of the FHA meaning (I suspect) I don't qualify for the program because I'm not "On grid". I'm in a subdivision in the Colorado mountains with many homes from a cabin to million dollar homes. Non- conforming?

#4 IMPuzzled

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Posted 28 February 2013 - 08:02 AM

Of course, I understand , from the standpoint of the FHA, that it's legal, but does that makes it morally right to deny me from the right to receive a reverse mortgage just because I'm supplying my own power? Do I have recourse?

#5 adjusterjack

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Posted 28 February 2013 - 08:29 AM

Of course, I understand , from the standpoint of the FHA, that it's legal, but does that makes it morally right to deny me from the right to receive a reverse mortgage just because I'm supplying my own power? Do I have recourse?


No recourse.

There's no illegal discrimination.

You don't have the "right" to a reverse mortgage or any loan at all.

When you want to borrow money you have to meet the lender's qualifications for the loan.

That's the long and short of it.

Your option is to apply to other lenders who might not share those limitations.

Warning: Legal issues are complicated. Explanations and comments here are simplified and might not fully explain the ramifications of your particular issue. I am not a lawyer. I do not give legal advice. I make comments based on my knowledge and experience. I guarantee nothing. If you act on my comments without the advice of an attorney, you do so at your own risk.


#6 pg1067

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Posted 28 February 2013 - 01:10 PM

Of course, I understand , from the standpoint of the FHA, that it's legal, but does that makes it morally right to deny me from the right to receive a reverse mortgage just because I'm supplying my own power? Do I have recourse?


This is FindLaw.com, not FindMorality.com, and the law does not provide recourse for things that are legal but arguably not "morally right." If a particular lender doesn't want to extend a reverse mortgage because you don't live in an area where you get power from a power company, that's entirely up to the lender. I don't know why a lender might do that, but it's certainly not illegal (and I wouldn't say that it has anything to do with morality either). Sorry.

#7 FHAVictim

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Posted 04 September 2013 - 02:01 PM

I was just hit with the ultimate hammer by the FHA, I live in a non-conforming community, a large Condo development. Why do we not conform? Due to the large number of foreclosures during the housing crash, speculators rushed in here and bought up 70% of the units and rented them out to many tenants who have no interest in maintaining their property or or even common decency or neighborly respect. I don't know the FHA conforming ratio of Owner Occupied vs.Tenant Occupied but  I do know that 70% tenant occupied means we are in deep, deep trouble.



#8 Fallen

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Posted 04 September 2013 - 02:28 PM

It's not entirely clear why you paid cash to build the house instead of getting a traditional construction loan and mortgage, and meanwhile putting the money to good use.  It may be that you should be angling for a "regular" mortgage or HELOC if you need dough.


I'll echo PG's advisory "warning" with a twist: (Many) legal issues are complicated. Explanations and comments here might not fully identify or explain the ramifications of your particular problem. I do not give legal advice as such (and such is impermissible here at any rate). Comments are based on personal knowledge and experience and legal info gleaned over a quarter century, and every state has differing laws on and avenues to address most topics.  If you need legal advice, you need to consult (and pay) a professional so that you may have someone to hold accountable.  Acting on personal and informational advice from a stranger on the internet is a bad idea -- at least not without your own thorough due dilience/research and confirmation as it applies to your situation.  :)


#9 FindLaw_Amir

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Posted 05 September 2013 - 07:13 AM

You may be interested in visiting the Real Estate Law Center: Mortgages and Equity Loans and reading A Reverse Mortgage Guide as a good resource. If you need further clarification on your specific situation, you may consider signing up for a LegalStreet plan. With the plan, you have unlimited access to a local lawyer to ask your questions and the plan also offers discounted legal representation should you need it.

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