Reverse Mortgages (physically, moving, blogs, adult)

[Miss Blue]

As I posted early on this thread, I am against these reverse mortgages. They remind me so much of those credit card companies that prey on the unfortunate souls who have lost their credit rating due to bankruptcy, divorce, etc. They pretend to be doing you a big favor by asking for $150 and up annual fee and interest as high as 24%. My advice to anyone wanting a reverse mrtge. for a quick fix is hang on to your home, look everywhere you can for help..Someone mentioned food bank. Try community services..They are a big help in my area...

[Tfreesemann]

A couple of people mentioned that Reverse Mortgages are scams. Just a little information. If you are not talking about the HECM (Home Equity Conversion Mortgage - commonly called a Reverse Mortgage) which in Federally Insured then maybe you have a point. The most popular type of Reverse Mortgage is the HECM and it has allowed thousands of senior maintain their independence as they age. Many seniors have used the income from the Reverse Mortgage to pay for others to mow thier lawn, and other neccesities that come with owning a home. As one person mentioned, it is good advice to talk to someone that is an expert on Reverse Mortgages and get the whole truth before making a decision. It may not be the best option for everyone, but when you are making a decision that will make a large impact on your future get the facts of all your options so you can make the best decision for yourself. Many people provide free information in the form of DVD, phone consultation and in-person consulation. If you would like a DVD - e-mail me and I will send you one. I just want to clear up the misconceptions that I read on this thread.

Troy - Reverse Mortgage Man

[azloafer]

Thanks for the info Troy. I'll keep your letter on file and contact you when the time seems proper in our case.

[Tfreesemann]

I didn't see one truth in your thread - There are no upfront, out-of-pocket fees and the interest rate is right around 6%.

[Padgett2]

It could be a BIG mistake. She could live 30 more years, That reverse mortgage will have to be paid back sometime. By the time she dies, she could owe a lot of interest that her Estate is liable for. The house would probably not bring in enough to pay it off......that leaves the family (the Estate) owing the rest.

It's not a good idea for anyone with family.

[azloafer]

Originally Posted by Padgett2

It could be a BIG mistake. She could live 30 more years, That reverse mortgage will have to be paid back sometime. By the time she dies, she could owe a lot of interest that her Estate is liable for. The house would probably not bring in enough to pay it off......that leaves the family (the Estate) owing the rest.

It's not a good idea for anyone with family.

Troy, is that true? I thought that it never had to be paid back!

[Cattknap]

A lot of people here are jumping to conclusions as to what a HECM is. Please look at the info in this link - it is a viable option for seniors who are home rich and cash poor - a HECM can make a huge difference in the quality of life for some seniors. Please read and learn some interesting truths.

About Reverse Mortgages for Seniors (HECM) - HUD

[Cecilia_Rose]

Just something to consider. If you think you might need inhome care , have medical problems, or have to go into a nursing home you might want to consider a reverse mortgage. Also if you use medicare/medicaid for any of these services they will eventually take your house for payback.

I know of an elderly lady who did this. She spent her money while she was able. Then she applied for inhome heathcare, meals on wheels etc. Shes in her late 80's now and in a nursing home. Yes she will lose her house, but she would have lost it anyway to pay for all the services and the nursing home.

Im 57 with no kids. I plan on downsizing and then doing a reverse mortgage later so Ill be watching to see what info you come up with.

[Padgett2]

..." you or your estate will repay the cash you received from the reverse mortgage, plus interest and other fees, to the lender. The remaining equity in your home, if any, belongs to you or to your heirs. None of your other assets will be affected by HUD's reverse mortgage loan. This debt will never be passed along to the estate or heirs....."

Do you see that little note about "PLUS INTEREST AND FEES?" It's true that you won't ever owe more ON THE NOTE than the house is worth, but those interest and fees amounts can add up. Your estate will continue to collect that interest and fees (think, late charges) until the house is sold.

True, YOU won't be liable, but your ESTATE may be. The house may be hard to sell. If you don't have children, it's fine. But if you do, those interests and fees can eat up a lot of money. If you have any other investments or a band account, that will go to pay those fees and interests

My SIL got one. She had some much needed repairs on the house done. Now she gets a notice each month showing how much interest is be charged each month for that money. It's adding up. She isn't having to pay it back, but if the house doesn't sell for enough to cover it all, her ESTATE will. Of course, she doesn't have any bank account or investments so her children really won't have anything to worry about.......we hope!!

[Cattknap]

The bottom line: If you are going to have to live like a pauper and you own your home or have lots of equity, a reverse mortgage can keep you comfortable with a roof over your head for the rest of your life. Who cares if the "estate" has to pay for interest and fees....I would much rather see my elderly parents be able to live with dignity than worry about my inheritance.