Reverse Mortgage Español

REVERSE MORTGAGE AS A MEANS OF GENERATING INCOME FROM CAPITAL. A reverse mortgage, governed by Law 41/2007 of 7 December, is understood to mean a mortgage or mortgage by which a deposit taker makes a payment (periodic or fixed ) to a borrower in return for the latter using the real estate as a security.

Customer must obtain the amount of the credit in a periodic or flat-rate manner. Reimbursement can only be made by the company that grants the credit if the debtor dies or, if appropriate, the last of the recipients. A pledged object must be valuated and protected against damage.

It is the owner's right to retain ownership of the building. Actual re-valuation of the immovable object shall remain with the proprietor. Receivables are only due after the decease of the landlord. The purpose of a reverse mortgage is to make it easier to secure the funds of certain individuals who are receiving the payment in the form of liquid assets but who are not obliged to repay them, since the borrower is not allowed to obtain the borrowed principal and interest until after the recipient's deaths.

Thus, the reimbursement of the monies obtained is the sole liability of the beneficiaries or, as an alternative, the transformation of the real estate into money. Although it is a pecuniary tool that requires the opinion of an appraiser before being examined, it is a great occasion for those who wish to benefit from their lifetime saved up assets to convert them into money without separating from their own possessions.