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Old 06-23-2014, 08:33 AM
 
Location: Southwestern, USA
15,355 posts, read 12,114,801 times
Reputation: 16597

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I haven't heard back on other threads so I started this.

I have no living relatives to leave anything to...I expect to live another
25 yrs....I have $10k left on my mortgage....I'm thinking a Rev Mor...could
be fun!

Yes? No?
I wanted to hear from you guys...not real estate agents or bankers necessarily.
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Old 06-23-2014, 08:44 AM
 
Location: Columbia SC
8,947 posts, read 7,725,979 times
Reputation: 12154
Miss

I believe for one person looking to make their life financially easier that a reverse mortgage could work. Many of the bad stories are about surviving heirs not getting what they thought they were going to get. More greed on their part then concern for what the family member did.

I do suggest you get some legal advice before you sign anything. Maybe a lawyer that specializes in elder care.

In summary, I say if alone with only yourself to be concerned about and no concern about heirs, then it is worth investigating.
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Old 06-23-2014, 08:50 AM
 
4,649 posts, read 6,477,998 times
Reputation: 5394
What you leave behind uncle Sam will be there. Enjoy your assets.
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Old 06-23-2014, 09:58 AM
 
Location: Southwestern, USA
15,355 posts, read 12,114,801 times
Reputation: 16597
This' what I'm thinking...why sit on this equity...might as well
use it...have some fun.
Thank u for replying...I'm open to negative info, also.

What I have read online had to do with heirs, also...not
always greed, but sometimes hassle.

Yes, I have a real estate attorney friend when it gets down to signing.
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Old 06-23-2014, 12:51 PM
 
2,591 posts, read 5,284,814 times
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I recall there were a couple additional issues beyond inheritance. You must maintain the house and keep insurance. Also if I remember right if you no longer LIVE in the house (because you are in a nursing facility?) then the bank gets to take it.
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Old 06-23-2014, 01:37 PM
 
48,516 posts, read 83,890,268 times
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I'd look to professional legal advise rather than myths on any such matters really. In these matters its more a case of horror stories much like you hear on even mortgages taken by many; IMO.
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Old 06-23-2014, 07:27 PM
 
Location: Southwestern, USA
15,355 posts, read 12,114,801 times
Reputation: 16597
I will for sure get professional advice...this is a big deal.
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Old 06-23-2014, 09:17 PM
 
Location: Ocala, FL
407 posts, read 474,143 times
Reputation: 1299
DH and I purchased our home using a reverse mortgage, put down I think it was 45% as he was 64 when we bought it. It's in his name alone as I'm not 62 yet. We have to maintain the house along with paying taxes and insurance, but we don't have a house payment and can live here until he dies. They send a form each year that he has to sign attesting that he's still alive and living in the home, but nobody knocks on the door to check. I have enough life insurance on him to pay it off should he die.

My fear is that he may have to go into a nursing home and then I would have to sell the house, but I'm not physically in a situation where I could maintain the property anyway. It's 5 acres, way more than I can do on my own. It has gained enough in value that should I have to sell it, I'd get back the entire 45% we put down plus some, even though the balance on the mortgage has increased in the four years we've lived here. In a couple years when I turn 62, we will look into refinancing it and putting my name on it, too. We own some rental properties I could move into should the need arise, so I wouldn't be living under a bridge regardless.

Yes, take the equity out and go have fun. Even if you had kids, who cares? Let them earn their money the same way you did. Nobody is entitled to an inheritance. You do have to be at least 62 to take out the mortgage, BTW.
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Old 06-23-2014, 10:43 PM
 
Location: Sacramento
13,784 posts, read 23,800,954 times
Reputation: 6195
Quote:
Originally Posted by Miss Hepburn View Post
I haven't heard back on other threads so I started this.

I have no living relatives to leave anything to...I expect to live another
25 yrs....I have $10k left on my mortgage....I'm thinking a Rev Mor...could
be fun!

Yes? No?
I wanted to hear from you guys...not real estate agents or bankers necessarily.
My mother-in-law obtained a reverse mortgage after her husband died. It has been seven years now and that has allowed her to stay in her home, no mortgage payment anymore plus some modest supplemental income.

No regrets, on her behalf nor ours.
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Old 06-24-2014, 12:17 AM
 
1,203 posts, read 705,254 times
Reputation: 2122
I'm no financial expert I would think another way to get use the equity in your home is to sell it and rent.
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