Pricing of Reverse Mortgage on Forward House Sale

DOI

10.2991/jcis.2006.169How to use a DOI?

Keywords

Reverse Mortgage, Forward Sale

Abstract

This paper aims to analyse the risks involved in reverse mortgage on a forward sale of house by elderly homeowner. We provide a practical solution to institutions planning to issue such reverse mortgages. We propose the formation of Senior Citizens Housing Trust for retired homeowners who wish to sell their homes forward in order to raise cash through reverse mortgages. Under a forward house sale agreement, the homeowner enters into a contract to transfer the property to SCH at the time of their death in exchange for reverse mortgage on the property. The SCH Trust reverse annuity mortgage enables homeowner to draw down the full home equity over their remaining life.

Copyright

© 2006, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Kanak Patel
AU  - Tobias Baer
AU  - Isil Erol
AU  - Ricardo Pereira
AU  - Sung-Jin Yoo
PY  - 2006/10
DA  - 2006/10
TI  - Pricing of Reverse Mortgage on Forward House Sale
BT  - Proceedings of the 9th Joint International Conference on Information Sciences (JCIS-06)
PB  - Atlantis Press
SP  - 621
EP  - 624
SN  - 1951-6851
UR  - https://doi.org/10.2991/jcis.2006.169
DO  - 10.2991/jcis.2006.169
ID  - Patel2006/10
ER  -