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Reverse Mortgage



Unless you are 62, this will just be something interesting to read, but if you are 62, this may be a subject you should look into.


We all know how stroke robs people of the things in life that they have worked so hard for. We know about people loosing their homes because they are no longer able to pay their mortgage payment or the taxes and insurance on their homes and desparately need the money for their long treatments. I don't know the % of people here that are 62 since there seem to now be so many younger people who have gotten stroke via PFO, but there may be some.


My sister had gotten an invitation to attend a presentation on reverse mortgage. It was held at a restaurant and lunch came with it, so it was a very interesting proposition. She could bring 4 guests with her and so she took me. Since I am getting closer to again being a home owner, perhaps this would also be something for me as well.


The speaker was the president of the company and really good and very easy going. People were permitted to ask questions as he went along so they would not be forgotten, which many speakers do not allow.


The deal is this. You may be feeling a crunch but no one ever thinks of the money they have invested in their home as being a valuable source, except if that home is sold. In this case, you get to live in the home as long as you want and you get paid a monthly tax free amount. You cannnot be forced out of your home in any way and you can spend the money anyway you choose - no questions asked. Even if you choose to blow the money on a trip to Las Vegas, or buy the car or boat of your dreams. Your home which you paid for for many yearts is your equity and that money is yours.


I can't explain all of the factors but if you have a home and need some cash , check into it. It has been changed from the reverse mortgage of years ago and is backed by the govt. This money may not be enough to live on but could be that little extra that you need, and even if you get SSDI, I don't think this counts as income because you already have this money


Never assume you are not qualified for something unless you have checked it out.


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I used to sell reverse mortgages. They can be a wonderful thing for some, not for others. HUD regulated counseling is required, it should answer all questions. The major downside is it will leave less for the heirs to divvy up. If your financial need is such that the heirs are not a major consideration, look into it. If you plan to sell or move in the next few years, a reverse mortgage is likely not for you. If you have a mortgage, lots of bills, home equity lines out of control, fixed income not large enough, over 62, a reverse mortgage may be able to help you a lot.


I used to work with lenders about to foreclose on the property and often we were able to save the house. If you have any other questions, I'll be happy to answer them.


BTW, single wide trailers usually don't qualify, double wides maybe, probably not, older homes, maybe, condo's PUD's, probably. An FHA appraisal is required, and they can be picky. It is an FHA insured loan, the homeowner never pays it back as long as they live in the home. Your income has no bearing on qualifying for the loan.

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Guest lwisman


I have a question. If you die in the next few years, does the equity on the house belong to the lender or can it be passed on to heirs.

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Lin, they said that you retain the deed to the house. Heirs have 12 months to sell or if an area difficult to sell, at least have an active contract. The man was very knowledgeable and his presentation was excellent. Donna, I will have to see but this is or has been changed. All that George said is true. I believe there may be some differences in states though.Obviously, there should be much thought about this.


As for heirs, let's be honest. While it's nice to leave them a lot, you do not have to worry about them and not be able to pay your bills. People must do what is best for them. The heirs, should not expect to be taken care of; they should be responsible for themselves. You and your spouse have paid for the home and the money in it was from their hard work. This should be a persons last concern. If money is needed for medical treatment, medicine and it can be to your advantage (not the heirs) then, you should go for it. You will have a place to live. Ever check prices for assisted Living situations? It will shock you! if you sell your house and the $ goes, and you outlife the $, what then? Will your heirs take care of you?

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Guest lwisman


I agree Phyllis that paying your own bills is the number priority.


It would just be good to know who has the deed. If (god forbid) one got run over by a mac truck and killed in a month, it would be good to know if the house is still part of your estate, or if the company who just gave you the deal gets it. Just interested in how the deal works. How does the company make money? I know in Belgium there is a reverse mortgage deal where you sign over your house and then pay rent. You can live there until you die, but the house belongs to the company, not you and therefore not your estate. You take a risk that you will live long enough and be able to live in the house long enough for it to work out financially.


I would just be sure I know all the facts before signing up.

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I see the ads on TV all the time, it's not allowed here in Canada. They basically put a lean on the property so when you, your dependents ot whoever sells the home they get payed back with interest. So if you haven't anyone to leave it to you might as well get some cash and stay in your home.

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