Pricing of Reverse Mortgage on Forward House Sale
- Kanak Patel 0, Tobias Baer, Isil Erol, Ricardo Pereira, Sung-Jin Yoo
- Corresponding Author
- Kanak Patel
Available Online October 2006.
- https://doi.org/10.2991/jcis.2006.169How to use a DOI?
- Reverse Mortgage, Forward Sale
- 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.
- Open Access
- This is an open access article distributed under the CC BY-NC license.
Cite this article
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 - 9th Joint International Conference on Information Sciences (JCIS-06) PB - Atlantis Press UR - https://doi.org/10.2991/jcis.2006.169 DO - https://doi.org/10.2991/jcis.2006.169 ID - Patel2006/10 ER -