Reverse mortgage

[cowboy43]

How does a reserve mortgage work. I know one elderly man who said he had outlived his contract and was having trouble paying his bills, yesterday a man told me his friend had a reverse mortgage and his home was being sold for foreclosure,
After hearing these two stories it got me to wondering how a reverse mortgage worked. Has anyone ever dealt with a reverse mortgage?

 

[Rafter S]

I don't know anything about them personally. I listen to Dave Ramsey quite a bit on the radio and he says they're horrible. I'd tend to believe him.

 

[M-5]

I know a guy who lives next door to Dave Ramsey Ill get him to ask .

 

[TennesseeTuxedo]

I know a guy who lives next door to Dave Ramsey Ill get him to ask .

I know a good real estate lawyer, I'll go ask him.

 

[J&D Cattle]

I've never sold a one and don't plan on it but there are very different reverse mortgage products out there. I have spoken to a few lenders at seminars that sell them by the boat load. They were always quick to point out that they aren't for everybody and the buyer needs to be fully aware of the contract they are buying.

 

[TennesseeTuxedo]

I had a chat with the attorney's assistant and he didn't think that a foreclosure was probable on a reverse mortgage. I'll follow up with attorney himself tomorrow.

I'm like you J&D Cattle, I've never done a reverse mortgage in all the years I've been in the mortgage business but I'm sure they have their place and have helped a lot of folks in need.

TT

 

[M-5]

I had a chat with the guy and he said dave was not home this afternoon but would keep an eye out for his Maserati to come in tonight.

 

[TennesseeTuxedo]

I had a chat with the guy and he said dave was not home this afternoon but would keep an eye out for his Maserati to come in tonight.

I hear that rascal will flat run you over if you're in the street when he comes roaring down the hill.

 

[Jogeephus]

Way I see it, its something the gov't conjured up, it is something they encourage so its something I don't think is good for me.

 

[Dave]

Neighbors had a reverse mortgage. He died about a year and a half ago. She died last summer. Their druggy kids is still in the house. Everyone is hoping that they will foreclose on the kid. No luck so far.

 

[Bigfoot]

I had an aunt, with no children. It was just right for her. Can't imagine it would be for anybody with children, unless they have moved off, and won't be returning etc. I guess they have a place, kind of a hedge against inflation so to speak.

Dave Ramsey told me everything would be ok, then he got in his Cadillac and rode away. My dad puts anybody and every bodies name in that saying. I thought it fit Dave tonight.

 

[Brute 23]

Big scam..

They pay you back the value of the home in monthly payments. The bad thing is there are all kinds of fees and got-ya's. For example if you out live it you are renting or trying to buy it back. I think also if you die before it pays out they keep the money.

 

[Bigfoot]

Big scam..

They pay you back the value of the home in monthly payments. The bad thing is there are all kinds of fees and got-ya's. For example if you out live it you are renting or trying to buy it back. I think also if you die before it pays out they keep the money.

That's why it suits an elderly person with no heirs. You get the cash now, and your not throwing your kids under the bus when you die, with money still on the table.

 

[Brute 23]

Big scam..

They pay you back the value of the home in monthly payments. The bad thing is there are all kinds of fees and got-ya's. For example if you out live it you are renting or trying to buy it back. I think also if you die before it pays out they keep the money.

That's why it suits an elderly person with no heirs. You get the cash now, and your not throwing your kids under the bus when you die, with money still on the table.

Not really... they out live it and spend all the money... then they end up on the street. If your having to do a reverse mortgage there is already some thing wrong and the reverse mortgage will not fix it. They need to sell the house and go live some where they can afford. Or I guess just run up a bunch of credit cards and when you die they can fight over the house.

 

[1982vett]

Big scam..

They pay you back the value of the home in monthly payments. The bad thing is there are all kinds of fees and got-ya's. For example if you out live it you are renting or trying to buy it back. I think also if you die before it pays out they keep the money.

That's why it suits an elderly person with no heirs. You get the cash now, and your not throwing your kids under the bus when you die, with money still on the table.

Hmmm.... :lol: brain fart.... yours....mine....not sure which

 

[Brute 23]

Mine are just as bad most of the time

 

[herofan]

It has to be wonderful. According to the Fred Thompson and Henry Winkler commercials, it is has the following benefits:
- safe, financial tool
- eliminates monthly mortgage payments
- gives you tax-free cash from equity in your home
- the best part is, you still own your home
- helps you live a better retirement
- does not affect social security

I'm sure there is nothing else to know, or anything they left out of the commercial, or any fine-print issues.

 

[cowboy43]

How much are those two getting paid to make that commercial, sell your soul for the almighty dollar.

 

[Bigfoot]

The reverse mortgage thing, is really misunderstood by many. Again, I'm not saying it's a good thing. Imagine it as working the opposite of a life insurance policy. You take out life insurance because you think you might die. You gamble that the small monthly payment will pay off big. You do reverse mortgage gambling that you will live. You get the equity in your home, as opposed to your heirs. I also would add, that I look at inheritance different than most people. It's not my money, it's theirs. If they want it, that suits me fine.

 

[dun]

The reverse mortgage thing, is really misunderstood by many. Again, I'm not saying it's a good thing. Imagine it as working the opposite of a life insurance policy. You take out life insurance because you think you might die. You gamble that the small monthly payment will pay off big. You do reverse mortgage gambling that you will live. You get the equity in your home, as opposed to your heirs. I also would add, that I look at inheritance different than most people. It's not my money, it's theirs. If they want it, that suits me fine.

The way I look at life insurance is your betting you'll die before you pay them all the money that your heirs would get. So if you die as soon as you get the policy you WIN!