Can I have a mortgage on my house and still get a reverse mortgage?

Only if your mortgage is small enough to be paid off by the reverse mortgage.

A man is 62, but his wife is 58. Can they still get a reverse mortgage?

Only the person aged 62 can – if his spouse is no longer a co-owner and her name is removed form the title to the house. But in that case, if the older person died, the loan would become due and the house might have to be sold – perhaps something that the spouse wouldn’t want.

Is it true that you can use your reverse-mortgage money for anything? Anything legal, that is?

No. you cannot use the loan to pay anyone at all for having given you advice about a reverse mortgage. Only a HUID-approved lender or a licensed mortgage broker working with a HUD-approved lender can receive compensation for the origination of a loan.

Can I be turned down for a reverse mortgage? If, for example, my house is a dump?

1) First stage: From 2006 to 2007, builders got hammered first. Massive investers or flippers dumped their signed contracts and walked away, their deposit got forfeited by the builders. But builders got a huge inventory of fully finished new houses with no buyers. It has taken them a full year to try to liquidate them. This process is now more than half-way done. It may take until early 2008 to fully liquidate them, completing the process. That means if you want to get the best deals from new home builders, next 6 to 8 months may be your last chance. Once builders are done liquidating the inventories, a few builders may get bankrupted, majority will scale back from building any new houses. They only dig dirt when they have a sales contract. If they don’t have to build new houses, they can delay and avoid liabilities. The crisis for them may be over by end of 2008, at least on the inventory front.

Since I am not into multi family, I am only interested in individual residential bargains, but there areas should also offer bargains on multis.

Prince William County: 20109, 22193, 22191, 22193 …, in general, Manassas, Woodbridge are storm areas.
Loudoun County: 20164, 20176, 20175, …
Fairfax county: 20170, 20151, 22015, …

The above are hard-hit areas with lots of middle to lower income families. However, if you want to see the wealthy belts, follow these corridors:

I-66 corridor in VA
I-267 corridor in VA
I-270 corridor in MD (along 355 as well)
Route 7 corridor in VA
Route 50 corridor in VA