Proceedings of the 9th Joint International Conference on Information Sciences (JCIS-06)

Pricing of Reverse Mortgage on Forward House Sale

Authors
Kanak Patel 0, Tobias Baer, Isil Erol, Ricardo Pereira, Sung-Jin Yoo
Corresponding Author
Kanak Patel
0University Lecturer
Available Online October 2006.
DOI
https://doi.org/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.
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Proceedings
Part of series
Advances in Intelligent Systems Research
Publication Date
October 2006
ISBN
978-90-78677-01-7
ISSN
1951-6851
DOI
https://doi.org/10.2991/jcis.2006.169How to use a DOI?
Open Access
This is an open access article distributed under the CC BY-NC license.

Cite this article

risenwbib
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
PB  - Atlantis Press
SP  - 621
EP  - 624
SN  - 1951-6851
UR  - https://doi.org/10.2991/jcis.2006.169
DO  - https://doi.org/10.2991/jcis.2006.169
ID  - Patel2006/10
ER  -