Reverse Mortgage
- Thread starter windjammer
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If you get into it now, you'll regret it later. And there won't be any gettin' out of it then.
feralmerril
Absent Comrade
A close friend helped his widowed mother do it. She died less than two months later!
ldausmc1369
US Veteran
No! No! No!
Please don't do it! Just short of payday lending/legalized loan sharking! Leverage your equity! Take out a loan for enough of the equity to live on and make the note on the loan from the proceeds for a few years, or even better, negotiate an interest only loan with a balloon repayment at the end! JMHO.
Please don't do it! Just short of payday lending/legalized loan sharking! Leverage your equity! Take out a loan for enough of the equity to live on and make the note on the loan from the proceeds for a few years, or even better, negotiate an interest only loan with a balloon repayment at the end! JMHO.
semperfi71
US Veteran
I have watched the TV commercials for several years and the actors doing them used to be considered "reputable" folks.
But I am in agreement with every negative comment voiced here. Even if your home is paid off this "reverse mortgage" program just doesn't smell good.
As for the actors...I've lost respect for them (of course I have little respect for most TV and movie actors).
But I am in agreement with every negative comment voiced here. Even if your home is paid off this "reverse mortgage" program just doesn't smell good.
As for the actors...I've lost respect for them (of course I have little respect for most TV and movie actors).
BLACKHAWKNJ
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Yes, a very Bad Idea-like the home equity loan. My understanding is that at most you get 60-70% of the value/equity, you have to maintain the lace to THEIR standards, I note several of the Big Banks, BofA and Citicorp-have pulled out of the reverse mortgage market. My personal advice is to sell the place and find something more affordable.
windjammer,
If the couple doesn't have a cash flow problem, and especially if they own the home free and clear, don't walk, run from the Reverse Mortgage!
As stated in my post #15, there's only one circumstance when the Rev Mort. makes sense. For those in need of cash to pay the bills each month, as recommended by some, refinancing the home ones self or selling and buying into a cheaper home ARE better alternatives IN A NORMAL MARKET!
But with home values upside down and qualification for new mortgages almost impossible for fixed income folks, those are not currently realistic alternatives for an elderly person in a cash flow dilema.
Don't get me wrong, I'm no fan of Reverse Mortgages!! As I said they are a rip off. But they do offer a steady income for a person with no better alternatives until they pass on, no matter what happens to the value of the home.
If the couple doesn't have a cash flow problem, and especially if they own the home free and clear, don't walk, run from the Reverse Mortgage!
As stated in my post #15, there's only one circumstance when the Rev Mort. makes sense. For those in need of cash to pay the bills each month, as recommended by some, refinancing the home ones self or selling and buying into a cheaper home ARE better alternatives IN A NORMAL MARKET!
But with home values upside down and qualification for new mortgages almost impossible for fixed income folks, those are not currently realistic alternatives for an elderly person in a cash flow dilema.
Don't get me wrong, I'm no fan of Reverse Mortgages!! As I said they are a rip off. But they do offer a steady income for a person with no better alternatives until they pass on, no matter what happens to the value of the home.
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TheHobbyist
Member
It's a bad idea. Period.
1 old 0311
Member
If you NEED the money it is better than robbing a 7/11 but not much.
CAJUNLAWYER
Member
Son I think that if you are seeking advise for a move like this on a forum that you just joined you ought to step back take a deep breath and think.
This is a cold cruel world and people are out there to take your money. Only you can let them do it. You need to do your homework and get advise from live people you personally know and trust-not from internet sites and forums. If that site you posted is anything like a lot of internet lenders I have come across, they will roll you in fecal matter and dip you in cornflakes.
Please be careful. Read before you sign and do NOT be afraid to ask questions. Get EVERYTHING in writing and I mean EVERYTHING. Most importantly be willing (and have the guts) to walk away if it does not sound right.
Remember these people are in the industry to make money not to help you out. It's up to you to protect yourself.
This is a cold cruel world and people are out there to take your money. Only you can let them do it. You need to do your homework and get advise from live people you personally know and trust-not from internet sites and forums. If that site you posted is anything like a lot of internet lenders I have come across, they will roll you in fecal matter and dip you in cornflakes.
Please be careful. Read before you sign and do NOT be afraid to ask questions. Get EVERYTHING in writing and I mean EVERYTHING. Most importantly be willing (and have the guts) to walk away if it does not sound right.
Remember these people are in the industry to make money not to help you out. It's up to you to protect yourself.
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Reverse Mortgages are good for the Banks, not necessarily the people who are taking them. If you are older and have no other way to sustain your lifestyle, or have unfortunately been hit with an incurable disease and would like to go out for a "last hurrah", then maybe they make sense, but for the average person who has a sustainable lifestyle and can live within their means, I think it is not a good idea.
Just apply the general rule of thumb:
If Banks are advertising it in the papers, TV, magazines etc. then it's got to be financially beneficial to them, not to you. Remember, they are in the business of making money..........not looking out for our best interest.
regards,
Chief38
Just apply the general rule of thumb:
If Banks are advertising it in the papers, TV, magazines etc. then it's got to be financially beneficial to them, not to you. Remember, they are in the business of making money..........not looking out for our best interest.
regards,
Chief38
Moonman
Member
The CAJUNLAWYER and Iggy really gave you EXCELLENT ADVICE.
handejector
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This is a thread from 09 ressurected by a spammer in Nov.
I missed that one, but got him today along with the one who ressurrected it this morning.
I missed that one, but got him today along with the one who ressurrected it this morning.
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