Home Forums Hunting & Shooting Hunter's Campfire reverse mortgage good and bad

Fred Thompson used to pitch RM’s too. I think he’s ded now.

That's what RM's do....they kill people.

Exactly!

A reverse mortgage is like an ejection seat: the absolute last resort.

Anybody tell this to Tom Selleck?

My aunt outlived both her kids, her husband and her income. She took out a reverse mortgage on her home which was paid for and when she died her grandson told the bank come get it. It worked for her.

My neighbor’s wife died leaving him with lots of credit card debt and a mortgage on their home. We offered to pay off his mortgage and give him a life estate on the home. He refused and moved his son with some of his friends into the home. They were to pay the mortgage and let him live there. After while they wanted him to pay rent. They were stealing his groceries and eventually kicked him out. He ended up living in town in a run down trailer on $800 a month SS. Lived in the alley down the street from our store. He often told me how he screwed up. What could I say?

It's probably too late.

One other thing....if you die absolutely loaded....you did it wrong.

But what about the chillren???


Tell em to get a job.

My parents left me with nothing but memories. Dad, who cared nothing about money, still managed to put together a plan to provide for a disabled sibling of mine. His pension provided comfort for our mother until she died. Other siblings and I have done well on our own. I recall Dad saying: “Money is like horse manure. The best thing to do is spread it around so young things can grow.” He used his to support his family over the years. I’d say he set a pretty damn good example. YMMV.

No doubt. Anyone who has ever taken out an RM or has pitched them on Tv is destined to be ded.

We are all going to die if we live long enough.

A thought Bob-

You do a RM, you both are in your late 80’s and need nursing home/hospice care for 3 years, that cost will hypothetically run you $300k. If you had a house without an RM that would be the time to tap that equity. If you have an RM you may be screwed.

I truly fail to see where an RM makes sense for 98% of people, and you don’t seem like the 2%. Maybe you just need to adjust your budget to handle a safe withdrawal rate from your nest egg? Just my 2 cents.

Taking out a reverse mortgage is going into debt. All the inspection fees, origination fees, title search and insurance will put you several thousand in debt immediately. Why not try selling it to an individual or outfit that has rental property and get a contract to rent it for you and your wife. The rent could be set to a price not to be changed. The new owner then would be responsible for a blown off roof or whatever. If you decide to move or die the contract ends and you or your heirs still have what's left in your pocket.

A reverse mortgage is not your friend. It is something for desperate people. If you don't owe money you have all kinds of options.

Actually, no. The hypothetical couple with the paid off house would exhaust their other financial resources and then quality for Medicaid, which would pick up their medical and nursing costs. The couple with the RM would do the same. They’d get the care either way.

yes...bob

No, Medicaid wouldn’t likely pick up the cost of a place that you would choose, trust me it won’t. But you’d get into some care facility, but it wouldn’t be your first choice.

The facts are that an RM is an expensive bet to make given fees, costs and your inability to predict your death. I would bet on increased financial flexibility down the road with less variability.

I concur. Wholeheartedly. I have a beneficiary deed on my house, which I own outright, and it will automatically transfer to my adult children on my death. And they receive the house on a stepped-up basis ~ no capital gains taxes at all. None. And the probate court has no say-so at all. None. I’ve taken it completely out of the hands of the probate court. Phuuk the probate court. I have beneficiary deeds on all of my vehicles, which I own outright, and they will automatically transfer to my adult children on my death. And the probate court has no say-so at all. None. I’ve taken it completely out of the hands of the probate court. Phuuk the probate court. And I have ‘transfer on death’ set up for ALL of my financial assets ~ bank accounts and retirement accounts. And the probate court has no say-so at all. None. I’ve taken it completely out of the hands of the probate court. Phuuk the probate court. And my kids don’t have to pay taxes on ANY of it.

NONE of the things above are part of my ‘probate estate.’ The only thing in my probate estate is the schit that’s inside of my house (clothes, shoes, furniture, etc.). And that’s the ‘only’ schit that I mentioned in my will. Stuff that’s not part of your probate estate doesn’t need to be mentioned in your will, since the phuukin’ probate court has NO say-so about ANY of it; they don’t need to know about it.

And I did all of this myself. I did the research and set all of it up myself. No need for me to pay money to a ‘financial planner’ or an ‘estate attorney.’ Death shouldn’t be such a complicated mess in our country like it is, but the thievin’ bastards have things in place so they can continue to fleece a person’s estate even after they’re dead.

But there are ways to keep if from the organized criminals that our local, state, and federal governments are comprised of.

did you read the context of why I started this post?...this isn't about a last resort...its about a way of tapping into an asset .....if you know of a better way of doing it I am all ears....bob

I'm leaving my kids everything, the more the better. They're definitely going to have a lot of junk to sort through, but it'll all be paid for.

Need to talk to your elder care attorney of choice about your entire retirement plan. Every state has their own rules, and protection of a dwelling (a place to live) for the community spouse has to be considered. Or a planned option. I have seen some options with better results for folks outside the RM contract. Anyone can find themselves in a Medicaid application situation, each case is different. Spend down while protecting a spouse requires planning. Being able to afford the type of care necessary after a medical event can leave the other spouse quite unprotected and things have to be done correctly asap.
Medicaid will get involved in a RM settlement/sale if either party is an applicant. It is a pain in the backside. Firsthand experience.
If an RM is being considered due to a monthly financial need, Medicaid is in the very near future if long term care becomes a requirement.

We all may face that day if we live long enough. Get prepared!