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Old 05-29-2012, 07:58 AM
 
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Quote:
Originally Posted by Crazee Cat Lady View Post
Yes, you could, but you probably shouldn't.
(I know several people who work in finance, and have heard it is a really
bad idea.)
There is no way you can anwer that question without knowing the posters financial picture.
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Old 05-29-2012, 08:04 AM
 
Location: southern california
54,795 posts, read 71,539,375 times
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Quote:
Originally Posted by TimtheGuy View Post
Of course the home is still the borrowers when they have a reverse mortgage, just as much as my home is mine even though I have a conventional mortgage on it. Of course you can still sell your home if you have a reverse mortgage...just like a regular mortgage the reverse mortgage balance would have to be paid off to sell. Of course you can pay off the reverse mortgage, just like you can a regular mortgage.
No its not
u r given an annuity til u die and allowed to live there til it happens
u r not owner
u r a tenant. u can't remodel u can't sell unless u back out of deal by paying back all money plus interest, lump sum.
and the chances of an old guy doing so are very slim

Last edited by Huckleberry3911948; 05-29-2012 at 08:27 AM..
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Old 05-29-2012, 08:29 AM
 
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Quote:
Originally Posted by Huckleberry3911948 View Post
No its not u r given an annuity til u die and allowed to live there til it happens u r not owner u r a tenant u can't remodel u can't sell unless u back out of deal by paying back all plus interest
First off, they are not all annuities. You can opt for a one time lump sum, a line of credit you can draw off, an annuity or a combination of the three.

Second, the borrower still owns the house and can do any remodeling they want. The borrower is not a tenant. The borrower is still in title. The lender just has a lien just like any other loan. The lender does not own the home.

Lastly, the borrower can sell their home anytime they like while they have a reverse mortgage taken out. I.E. borrower takes out a $100k lump sum reverse mortgage on a $200k valued property. 2 years later they decide to sell for $200k. At the closing the $100k loan + interest would have to be paid back. The only difference is that there is a bunch of accumulated interest (2 years worth in this case), while a person who sells with a "regular" loan has been paying the interest every month, so there is not a chunk accumulated.

You clearly don't have any idea what you are talking about.
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Old 05-29-2012, 08:32 AM
 
Location: southern california
54,795 posts, read 71,539,375 times
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Quote:
Originally Posted by TimtheGuy View Post
First off, they are not all annuities. You can opt for a one time lump sum, a line of credit you can draw off, an annuity or a combination of the three.

Second, the borrower still owns the house and can do any remodeling they want. The borrower is not a tenant. The borrower is still in title. The lender just has a lien just like any other loan. The lender does not own the home.

Lastly, the borrower can sell their home anytime they like while they have a reverse mortgage taken out. I.E. borrower takes out a $100k lump sum reverse mortgage on a $200k valued property. 2 years later they decide to sell for $200k. At the closing the $100k loan + interest would have to be paid back. The only difference is that there is a bunch of accumulated interest (2 years worth in this case), while a person who sells with a "regular" loan has been paying the interest every month, so there is not a chunk accumulated.

You clearly don't have any idea what you are talking about.
so a bank is guna give money on favorable terms to a old guy backing out of a reverse mortgage? or reverse loan mortgage guy is guna let me mess up their future property before they get it? i dont think so. i will call my bank in the morning to verify but there are restrictions on what u can do to the house before it passes hands to the future owner. and the terms of loan interest and principle pay back on backing out of a reverse mortgage, are not guna be pretty. do u sell reverse mortgages friend?


that does not sound right.

Last edited by Huckleberry3911948; 05-29-2012 at 08:43 AM..
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Old 05-29-2012, 08:39 AM
 
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Quote:
Originally Posted by Huckleberry3911948 View Post
so a lender going to give you money on a house when u are old and standing on a banana peel and on good terms to pay back interest and money borrowed on a reverse mortgage? i dont think so.
Well you would be wrong again. Yes, a lender will give a reverse mortgage to someone who is 100 years old, with zero income. There is no credit qualifying. The requirements are that the borrower is over 62 years old and has ample equity in a home. There are no payments due as long as the borrower is living in the home. If the borrower passess away or moves out of the home, then the loan needs to be repaid, typically with a sale of the property.

Guess what, lenders will do regular 30 year fixed rate conventional financing for a 100 year old person that lives off of social security too. (the borrower has to qualify for this type of loan though....income, credit, etc.)
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Old 05-29-2012, 08:48 AM
 
Location: southern california
54,795 posts, read 71,539,375 times
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Quote:
Originally Posted by TimtheGuy View Post
Well you would be wrong again. Yes, a lender will give a reverse mortgage to someone who is 100 years old, with zero income. There is no credit qualifying. The requirements are that the borrower is over 62 years old and has ample equity in a home. There are no payments due as long as the borrower is living in the home. If the borrower passess away or moves out of the home, then the loan needs to be repaid, typically with a sale of the property.

Guess what, lenders will do regular 30 year fixed rate conventional financing for a 100 year old person that lives off of social security too. (the borrower has to qualify for this type of loan though....income, credit, etc.)
ton of medical bills and in failing health, typical scenario for reverse mortgage no problem on backing out of a reverse mortgage right? u ignored my question r u a verse mortgage saleman? i will let u know after i call the bank, i think there are restrictions on what u can do with the property after u sign for a reverse mortgage.
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Old 05-29-2012, 09:12 AM
 
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Quote:
Originally Posted by Huckleberry3911948 View Post
ton of medical bills and in failing health, typical scenario for reverse mortgage no problem on backing out of a reverse mortgage right? u ignored my question r u a verse mortgage saleman? i will let u know after i call the bank, i think there are restrictions on what u can do with the property after u sign for a reverse mortgage.
Medical bills...not a factor. Failing health...not a factor unless the borrower is expecting to be put in a nursing home. Backing out...not quite sure what that means, but you can sell at any time or pay off the reverse at any time.

I do regular mortgages, not reverse. Reverse mortgages are specilized and originated by specialists. What you can do to the property is just like what you can do with a regular mortgage...you agree to keep the property in good repair and insured. Want to remodel the kitchen...have at it. As a matter of fact, many reverse mortgages are taken out to do long over due improvements to homes.
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Old 05-29-2012, 09:42 AM
 
Location: southern california
54,795 posts, read 71,539,375 times
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Quote:
Originally Posted by TimtheGuy View Post
Medical bills...not a factor. Failing health...not a factor unless the borrower is expecting to be put in a nursing home. Backing out...not quite sure what that means, but you can sell at any time or pay off the reverse at any time.

I do regular mortgages, not reverse. Reverse mortgages are specilized and originated by specialists. What you can do to the property is just like what you can do with a regular mortgage...you agree to keep the property in good repair and insured. Want to remodel the kitchen...have at it. As a matter of fact, many reverse mortgages are taken out to do long over due improvements to homes.
thank u for your honesty. your are loan officer. now i will also be honest in turn. got a bit of egg on my face.
this has been educational for me. relying on rumor rather than facts is never good. i just spoke with the bank and did some google work.
there are downsides to reverse mortgage. cost wise its not a good deal in that the debt goes up over time not down.
u can in fact remodel u can in fact sell u can in fact have renters. its just a loan, but its guna cost u more than other loans. lots of old sick people are tempted to do reverse mortgage, financially its not your best loan on the market.
here is a google site on the pros and cons of reverse mortgage.
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Old 05-29-2012, 09:53 AM
 
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Quote:
Originally Posted by Huckleberry3911948 View Post
thank u for your honesty. your are loan officer. now i will also be honest in turn. got a bit of egg on my face.
this has been educational for me. relying on rumor rather than facts is never good. i just spoke with the bank and did some google work.
there are downsides to reverse mortgage. cost wise its not a good deal in that the debt goes up over time not down.
u can in fact remodel u can in fact sell u can in fact have renters. its just a loan, but its guna cost u more than other loans. lots of old sick people are tempted to do reverse mortgage, financially its not your best loan on the market.
here is a google site on the pros and cons of reverse mortgage.
No problem Huckle. There are tons of misconceptions with reverse mortgages, the biggest being that you are signing your home over to the bank. It is why I am always so compelled to comment about them.

For many/most seniors it is not the best thing to do financially. However, it is a great 'last resort' option for those who want to stay in their home, but don't have the means to do so.

Many seniors are cash poor and equity rich. What good is all that home equtiy doing when they can't afford groceries, repairs, taxes, insurance, medications, etc? Many seniors can't qualify for a regular mortgage and even if they can, they are then stuck making monthly payments. The only ones who really "loose out" with a reverse are the kids who may inherit less.
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Old 05-29-2012, 12:57 PM
 
Location: southern california
54,795 posts, read 71,539,375 times
Reputation: 46863
Quote:
Originally Posted by TimtheGuy View Post
No problem Huckle. There are tons of misconceptions with reverse mortgages, the biggest being that you are signing your home over to the bank. It is why I am always so compelled to comment about them.

For many/most seniors it is not the best thing to do financially. However, it is a great 'last resort' option for those who want to stay in their home, but don't have the means to do so.

Many seniors are cash poor and equity rich. What good is all that home equtiy doing when they can't afford groceries, repairs, taxes, insurance, medications, etc? Many seniors can't qualify for a regular mortgage and even if they can, they are then stuck making monthly payments. The only ones who really "loose out" with a reverse are the kids who may inherit less.
r u saying that when they die the house does not go to the bank but is sold and proceeds used to pay the loan and what is left over goes to the kids ? that would be the case with a conventional loan. please clarify, people need to know.
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