Reverse Mortgages (55, financial advisor, inheritance, state)

[CAVALLERI]

My Mom Is Going To Be 62 And Is Thinking About A Reverse Mortgage. Does Anyone Know If The Will Give Her One With A Judgement On The House. It Is Not A Lein. She Needs To Collect Ss But It Will Not Be Enough To Pay Bills And What Remains On The Mortgage.

[dreamofmonterey]

Be careful. Reverse mortgages tap into your equity. They may approve it, but really, it is the banks way of taking away from your mother's estate. They used to do this alot in NY. Seniors who were house rich- and "cash poor"" i.e. they live on SS but equity in their house may have been 600.000.00. IMO it is predatory lending- if your Moms house is paid off- she should be able to give that to her children- for inheritance, whatever.

sunny

[CAVALLERI]

My Parents Haven't Been Together For A Real Long Time And See Still Owes 70,000 But Could Sell The House For Appx. 630000.00 . Her Ss Will Only Give Her Enough To Pay The Mortgage And Nothing Else. The Judgement Needs To Be Paid If The House Is Sold. I Think She Should Sell For What Ever Pay The Judgement And Rent A Place.

[dreamofmonterey]

She should down-size- is there a neighborhood where she can get a smaller house or condo? What state are you in? Then put the equity money in CD's/invest. Just my 2 cents- I hate to see older people lose out because of greedy banks.

sunny

[LML]

Do NOT do a reverse mortgage. It is really a scam. She would be much better off to sell and leave. It is hard but not as hard as dealing with greedy banks.

[christina0001]

Reverse mortgages aren't always evil. However it may or may not be the best way to use the home's equity. I would talk to a financial advisor and/or eldercare attorney. IMO if she is struggling to pay everyday bills, downsizing is probably a better option.

[CAVALLERI]

Thank you all - I spoke with her and I feel the same way - better to sell and find something that is smaller , she doens't need to have the problems that go along with having a house. - She finially agrees.

[dreamofmonterey]

Yes- and a large house becomes a burden. Too much maintenance. I mean even in our 30's- plumbing problems and yard work are a chore- Imagine what thats like at age 70 or 80!.

[brian_2]

Originally Posted by sunnyhelena

Yes- and a large house becomes a burden. Too much maintenance. I mean even in our 30's- plumbing problems and yard work are a chore- Imagine what thats like at age 70 or 80!.

My father is in his 80's & still insists on mowing his lawn with a push mower. The kids have tried for years to have it done for him, but he'd have none of it.

[killer2021]

Do not do a reverse mortgage. Most people don't know what they are getting into and end up doing something they don't know what they are doing. What happens is it goes out of control and the person could end up loosing their house!

Like the others have said - sell the house buy a smaller house/condo (100% down ONLY).