Sadly, large companies with big PR departments get away with expensive ads on television about the greatness of reverse mortgages and what they can do for you. The truth is all it will do for you is give you dribbles of money on your own equity while a lender has your money and just pays taxes. If you have paid off your house you can simply sell it and get all that money in hand. Don't be scammed!
2007-03-14 10:42:46 · 9 answers · asked by Rothwyn 4 in Business & Finance ➔ Renting & Real Estate
For those who are wondering about my credentials. I'm a successful real estate investor and I am well read on the processes involved. I simply want people to be aware of this. I expect a mortgage lender to say that this is a good thing. You are the people who are the scam artists.
2007-03-14 11:06:31 · update #1
And I suppose your better idea would be for the old people of america to just quit claim their homes to you instead and expect you to take care of them.
2007-03-14 16:54:09 · answer #1 · answered by Myron 4 · 2⤊ 2⤋
You clearly have no idea whatsoever about this.
If you sell your house, then what? Where are you going to live? You'll be paying rent at $1000 per month with income you don't have.
They are absolutely not right for everyone. That much I agree with. But in most cases for the people who do take them, this may be the only way an elderly person or couple can stay in their home, have ZERO housing expense, and be able to live affordably.
Great idea though. Sell the house and pay rent somewhere else until that money runs out in 3-5 years. Real smart. Then they'll end up on welfare and YOU are the one paying for their housing.
Even better, why not just stick every old person in an option ARM. Balance goes up every month AND they have to make monthly payments. That should accelerate their trip down welfare road even faster than renting would.
Before you come on here running your mouth off, you might actually take some time to learn a few things about the issue. Could save yourself some embarassment.
2007-03-14 10:53:09 · answer #2 · answered by Yanswersmonitorsarenazis 5 · 1⤊ 3⤋
Actually, it can be a good deal, if you do it right.
My parents' plan is to live in their own home until the day they die, and for their last check to bounce. When the time comes that they can no longer afford to pay the bills with their savings, the reverse mortgage will come into play. This will give them the money they need to live on.
So, they'll leave me with the balance to pay off after they go. A small price, really, considering all they've done for me.
2007-03-14 10:54:55 · answer #3 · answered by abfabmom1 7 · 2⤊ 1⤋
Please repeat your question to the lady who's reverse mortgage we closed last month. We were able to stop the foreclosure on her homeby paying off a mortgage she never should have been approved for. She can now keep the home she is raising her grandkids in.
As I am telling Seniors about the reverse mortgage I always make it a point to ask questions to see if it is good fit for them. I have told many that this is the wrong loan or the wrong time. I never make broad sweeping judgements about something I obiously know nothing about.
Amen Yanswers
2007-03-14 13:28:04 · answer #4 · answered by Andy 2 · 1⤊ 2⤋
for people on a fixed income (retirees) that dont want to move and also dont feel like giving their heirs a home that is paid for a reverse mortgage is a GREAT way to add some extra cash flow
for the right person a reverse mortgage can be a great move
(i am a licensed mortage lender)
2007-03-14 10:49:07 · answer #5 · answered by EF 2 · 1⤊ 1⤋
terrible analysis - reverse mortgages, like anything else, have good points and bad ones, and like the other guy said - where are they supposed to go when they sell the house
folks who get reverse mortgages do not have your way of thinking, but your way of thinking works for you - probably not for them
2007-03-16 20:03:33 · answer #6 · answered by Byron W 3 · 0⤊ 2⤋
It's not a "scam", it's just a product. People are free to ignore products they don't want or need. Are you suggesting companies be forbidden to offer certain financial services to customers?
2007-03-14 11:04:04 · answer #7 · answered by Cardinal Rule 3 · 2⤊ 1⤋
But you have to buy a new house. reverse mortgage is good for people whodo not want to or can't move.
2007-03-14 10:48:32 · answer #8 · answered by October 7 · 1⤊ 1⤋
This is interesting info...even though I am only a sophomore in college, I feel that I should be more educated in this department..would you mind sending a bit more info my way- rt435@yahoo.com...thanks so much
2007-03-15 04:38:37 · answer #9 · answered by Anonymous · 0⤊ 3⤋