Home Forums Hunting & Shooting Hunter's Campfire Reverse mortgage?

Anyone here actually have a reverse mortgage? I hear all sorts of horror stories, dont know if any of them are actually true?

Seems to me that at the end of it, the bank owns your house, but can't take delivery till you die.

That’s the way it works.

I read an article some years back that told how people ended up owing tens of thousand of dollars in fees before they ever touched a dime of the money available to them. I'd be pretty damn careful about getting into something like that unless
I had no heirs, and planned on dying pretty quick. No doubt someone selling them will tell what a great idea they are, just like whole life insurance.

It really frosts me when has-been celebtities come on TV selling crap like this and those cheezy insurance policies. Are they so hard up for cash that they have to resort to fleecing seniors out of theirs?

Yeah, I've always wondered, if it was such a good deal, people should be standing in line to buy it, why do they need to spend millions on tv ads?

If you hate your kids, or don't have any, get a reverse mortgage (which is a bet by the bank that you'll die sooner rather than later).

My feeling is, if I'm ever THAT pinched, I'll downsize. Why spend all that money housing stuff that goes for three cents on the dollar at the estate sale?

heirs must pay everything you borrowed back plus interest to keep the house.

What happens if you have to be moved to an assisted living facility?

They have some uses. As most have stated the ones I have closed had tons of fees up front and you are limited to an amount quite a bit less than the appraised value, how much depends upon your age.

The ones I have originated involved paying off a conventional mortgage, freeing the homeowner from monthly payments. This made their retirement income go a whole lot further. None that I ever did was used to supplement income.

Most companies encourage your heirs to sell the house and retire the debt. The heirs are of course, entitled to any net sale proceeds. But if you get a reverse mortgage, you would most likely need to consider that you sold that house as you won't retire the debt in any other fashion than a sale.

KC

Just sell the house outright and use part of the funds to buy a van that you can park down by the river.

Get one'nem Temper pedic mattresses to throw in the back.

Use the rest of the money on liquor and to pay pretty girls to sit on your face.

Fug the lawyers and their reverse fuggin' mortgages.

Sounds like you got your next big move planned out!!

I'm never without a plan.

A reverse mortgage is seldom a good idea. Very, very seldom.

I can provide some actual, it happened to me, information about the reverse mortgage and how it works. First keep in mind that it is a loan with your house put up as collateral. In this case the company we were dealing with, which I will refer to as the Bank, set the value of the collateral and would allow the individual to withdraw as he needed it. There were some stipulations. The loan was for as long as the owner of the house resided in the house, not long as he lived. If you move out to an assisted living situation the loan terminates. If you die, it terminates and that is where the trouble starts. You are instructed to pay off the loan right then or surrender the title. The Bank was very aggressive in it's quest to get title to the house. They were expecting to get the house at the value of the collateral they allowed on the loan. They contacted the family within just a day or two of the death of the resident and wanted closure then. There were threatening letters nearly every day and phone calls too. I think the reason there attitude was like this is they were trying to intimidate the family and pressure them into making a bad financial decision.

An attorney came in handy and studying the contract to find out what the options are saved the day. There will be no helpful information or options coming from the Bank. They are not there to help the distressed family. They are there to get the house.

Read the contract carefully and from the view point of those that will be dealing with the Bank upon your death. I only have experience with one of these organizations and all the rest of them may be great to do business with, I don't know. This is one of those times when reading and having a very good understanding of the fine print may save your family some real grief at a stressful time in their lives.

A van and a Tempur-Pedic saves a lot of readin'.

i see you've read my book

,...yeah,...and there won't be anything in the lawyer's contract about a pretty girl dropping by to sit on your face on Mondays, Wednesdays, and Fridays like there is on *my* plan.

You can get weekends too,...but it'll be time and a'half.

Blame the Union,....not me.

You might as well tear the tag off that mattress too while you're at it. Damn lawyers.

If it's confusing and marketed to old people, it's probably a bad deal.

One of the scenarios that is not uncommon is seniors taking out a reverse mortgage, and outliving the payments. Then they still have the insurance and the taxes to pay, and no more "income" from the reverse mortgage. So they lose the house to a tax forfeiture. No house, no income, up a creek.