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why is a townhouse considered a condo? (reverse mortgages)


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i know someone that called one of those tv reverse mortgage places to see about getting a reverse mortgage. they said they townhouse they own is considered a condo, you dont own the land,  and you cannot ever get a reverse mortgage on that. i had no idea you dont own the land on a townhouse. geez. wonder why theres a deed then at the courthouse? they do pay an HOA fee but if anything goes wrong with the house the owner must pay. the hoa does snow and grass, nothing on the house at all.


so why are townhouses considered condos? very strange.  i wonder if the row homes downtown are considered condos. theyve been there 100 years. dont think the term condo existed back then.

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Read the full legal description of the property.


With a condo you generally have fractional ownership of all of the land under the entire development, plus you own the exclusive use of the space inside the walls of your dwelling, attached outdoor patios, garage/parking spaces, etc.  But you don't own the specific parcel of land underneath your actual unit.


In some jurisdictions the term "townhouse" exists only for marketing purposes to describe the style of a home, but the unit is actually owned as I described above, making it a condo for mortgage purposes.

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1. SMH at the thought of a predatory reverse mortgage, no matter what senior actor/actress is pitching the scheme

2. At least in this area, Townhomes are really condos. There's a common roofline shared among many units, no separation between units, and the unit exterior is maintained by the HOA.

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town home / condo ... perhaps an "eye of the beholder?.  It maybe that a reverse lender doesn't like the risk inherent in shared walls.  The deed should determine a physical difference between a town home and a condo:  condo's won't include land in the property description.

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