Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Why would the heirs have the option to settle for a portion of what was due? That sounds like a terribly stupid system. I would gladly take out a million dollars, leave it to my children, and let them settle with paying back half of it and keeping the other half.
See how stupid that system is? It is no surprise the banks would instead push to foreclose and take an asset worth significantly more than the debt. They would also like to obtain far more than they are due.
Funny thing is the generation getting reverse mortgages was the most prosperous generation in the history of our country and sadly there is not a more prosperous generation in the foreseeable future at the moment. Yet this is the one that is using up what inheritance they might have passed on. So, they obtained an inheritance and a great economy, and they are passing on debt and a broken economy.
If the children want the house, they'll have to be ready to buy the house. Mommy and Daddy don't give a crap about planning for retirement and sure don't intend to pass on the wealth they received from the aptly named "greatest generation" which built the inheritance and excellent economy that they passed on.
Please clarify your post. The oldest Boomers are turning 68 and most are under 60. You have to be 62 for a reverse mortgage. The generation getting reverse mortgages and now passing is the greatest generation. The generation cleaning up the aftermath are their Boomer children. So you realize you are condemning the greatest generation?
The interesting thing is you used your home equity line of credit to enhance and build a solid retirement beginning. It was a positive and not the negative some make it into.
Well, that's why we got the HELOC to begin with, to finance the building of our retirement house. We waited till we got the old house paid off ( in 2000)-had a 15 year mortgage instead of a 30 with a mind towards paying it off sooner. We got the loan for the amount we thought we would need, although that was only about half, or less, the amount of equity we had in the house ( during the housing boom, but I've always been too skeptical to believe that the housing market would continue to escalate as people claimed it would). We got an excellent rate for the equity line ( prime minus -.5) from our bank, it was our only mortgage, and we had good income, so we could use money from the equity line and pay it back- I'm not dumb enough to think that we could skip even a minimum payment some months ( as they said we could) and not have that interest added to the principal), but we tried to put at least several thousand dollars back into the principal each month when we could. Since it took a few years to build that house, and we had the money for a year or so before we began on the construction, we used that equity to pay off two car loans, bought another one for cash. We also used it for a new roof and some other work on the house in Miami before we sold it.
Is there a way to borrow against a paid off home ( home equity loan) and make no loan payments with the loan due when you die ?
If so, what is that loan called because I have never heard of it besides a reverse mortgage.
Teddy, it doesn't look like it is going to happen......LOL. I would be interested in the answer myself....a lot of people just skim posts. Unfortunately, I read e v e r y word....<s>
Teddy, it doesn't look like it is going to happen......LOL. I would be interested in the answer myself....a lot of people just skim posts. Unfortunately, I read e v e r y word....<s>
I think he answered his own question it is a reverse mortgage. Isn't that what a RM does? You can take it as a lump sum or as a line of credit.
I don't think the issue is selling the house but the heirs having the option to pay off the obligation ( which amount is part of the issue) by buying the house themselves. It may be the house they grew up in and just want to live in it now.
I'm sorry, but no one is entitled to inheritance or a free house to live in. That's just silly.
Children are entitled to be cared for and raised, educated and fed and clothed, taken care of until they're 18, sometimes a little longer. But to expect a handout from your parents at 61? I'm sorry, but once you become an adult, you assume the responsibility of making your own way in the world. The parents worked to earn the money to buy that house, and when they couldn't work any longer, they got a reverse mortgage to provide for their final years.
Inheritance should be looked at as an unexpected bonus if it occurs. It should not be expected. Nor is it anyone's fault but the 61-year-old adult if they never made anything for themselves.
I'm sorry, but no one is entitled to inheritance or a free house to live in. That's just silly.
Children are entitled to be cared for and raised, educated and fed and clothed, taken care of until they're 18, sometimes a little longer. But to expect a handout from your parents at 61? I'm sorry, but once you become an adult, you assume the responsibility of making your own way in the world. The parents worked to earn the money to buy that house, and when they couldn't work any longer, they got a reverse mortgage to provide for their final years.
Inheritance should be looked at as an unexpected bonus if it occurs. It should not be expected. Nor is it anyone's fault but the 61-year-old adult if they never made anything for themselves.
The case I am referring to is the OP article and the terms of the contract not being fully followed. I am the OP and I know why I posted the article. Much of what followed is a normal discussion progressing.
I'm sorry, but no one is entitled to inheritance or a free house to live in. That's just silly.
Children are entitled to be cared for and raised, educated and fed and clothed, taken care of until they're 18, sometimes a little longer. But to expect a handout from your parents at 61? I'm sorry, but once you become an adult, you assume the responsibility of making your own way in the world. The parents worked to earn the money to buy that house, and when they couldn't work any longer, they got a reverse mortgage to provide for their final years.
Inheritance should be looked at as an unexpected bonus if it occurs. It should not be expected. Nor is it anyone's fault but the 61-year-old adult if they never made anything for themselves.
Now to digress and respond to you per your comments and not in the context of the comments of mine you quoted. I am sorry but most of us have a will/estate plan etc which details the orderly distribution of our goods and wealth upon our death. For many Americans their house is a major part of that distribution. Failure to specify how you want it handled can be a problem that you won't have to deal with but someone will. If that is your children then the title of the thread is applicable. Who will be the executor of your plan? Is it one of your children which is common? Then the thread title is accurate. Unlike some investment accounts you usually can't designate a direct transfer of the house outside of probate or some similar process. That will be guided by any predeceased plans you had made legal. Who has or knows where your will is? Safe deposit box? Who has the right to inherit on death? That is something you can establish with your bank. It gives them access to the account to bury you if nothing else and to handle settling your assets etc. Many of us have a plan and are not planning to bounce a check to pay for our funeral. In fact in the later years of life wealth can be increasing as spending goes down. If we are fortunate enough to escape being annihilated by nursing home costs or have planned for such we do want things to transition as hoped for upon our death. In many areas of the country it is very easy to have a house worth 300-500k. That is no small sum to many to let just go flying away after their death. It is possible to have the balance of the loan in an account that your children can use to pay off the house with transfer going to them upon your death. Yes in many cases if you needed the Reverse Mortgage your other assets may be limited but your comments seemed to me to be more general in nature. So we can agree to disagree about what we expect and want for our kids from the assets we have. Remember it is possible to pay off the loan and keep the house in the family if the bank plays by the rules and you have planned for with your heirs. Perhaps they will set aside the money to pay the loan off asap and keep the house.
I actually was looking into a reverse mortgage for my ex's parents this past week. The fees are pretty brutal. For their home (which is worth around $200k) the fees alone came up to over $11k. That's without even taking any money out. You're almost better getting a home equity line of credit and just paying the interest monthly.
Turbo........this is what I am referring to.
Usually when a person takes out a reverse mortgage it is because their retirement income is not sufficient to meet their needs/wants.
This poster suggests they take out a home equity loan.
Will a bank go along with interest only payments?
Where are they going to have money to pay the interest ?
Borrowing money so you have cash on hand to pay back the loan isn't very bright.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
