Reverse Mortgage questions

[Dr. Evil]

Anyone here have parents or know anyone who has done a Reverse Mortgage? Pros and cons? My f-i-l is 78 and we are trying to convince him to retire from being a Preacher, but he's afraid his monthly Social Security won't be enough. They own 100% of their home that is probably valued at $150k.

Thanks

[Casey]

You should buy their home and rent it back to them. Collect enough from them to cover your note, insurance and taxes. They'll have the cash in the bank to live on and and you'll have property that you're likely going to inherit someday anyway. I wish I had done that myself. My folks paid cash for a house about 10 years ago. They could have money in the bank instead of tied up in bricks and mortar.

[deerplanter]

My aunt looked into it for my grandmother before she passed and said it was a total rip off. My wife is a home health nurse and works with several geriatics and she knows some that done this and wound up with out a house. I would try to figure something else out like a home equity loan with a long term payment plan.

[Dr. Evil]

You should buy their home and rent it back to them. Collect enough from them to cover your note, insurance and taxes. They'll have the cash in the bank to live on and and you'll have property that you're likely going to inherit someday anyway. I wish I had done that myself. My folks paid cash for a house about 10 years ago. They could have money in the bank instead of tied up in bricks and mortar.

Just finishing up a second home in Pagosa Springs, so I am tapped out. No one else in family interested in buying it. Hence my interest in a Reverse Mortgage.

[Charles]

IMO reverse mortgages are a rip off. The up front fee's and interest are way high.

RM can also effect Social Security, Medicare/Medicaid benefits and have other tax consequences. Due diligence is key.

Do a google search for Reverse Mortgage disadvantages.

I would say they only way I would do one is if it was a "last" resort.

[elkbowhunter]

IMO reverse mortgages are a rip off. The up front fee's and interest are way high.

RM can also effect Social Security, Medicare/Medicaid benefits and have other tax consequences. Due diligence is key.

Do a google search for Reverse Mortgage disadvantages.

I would say they only way I would do one is if it was a "last" resort.

X2

[Casey]

Just finishing up a second home in Pagosa Springs, so I am tapped out. No one else in family interested in buying it. Hence my interest in a Reverse Mortgage.

You can do it without much out of pocket. Not talking about paying cash, but taking out a loan that you pay on that is then covered by the rent you collect. It puts money in their pocket that is currently in bricks and mortar.

[sooner6969]

Don't do it!! That's all I can say!

[wes122984]

does anyone want the house when he is no longer around?

[Stan R]

A RM does not fit everyone by any means.

I have done several and in most cases the senior had no other option.

A senior and family need a lot of info prior to deciding if one will work.

I sent you a PM

Stan

[Dr. Evil]

does anyone want the house when he is no longer around?

No

[wes122984]

in that case sell it to an investor that will rent it back and get 80% to value vs a reverse mortgage and get the cash up front.

if he passes on a reverse mortgage and noone wants the house then the bank gets it. even if he only got payments for a year. if someone wants it they have to pay the bank back.

[Dr. Evil]

in that case sell it to an investor that will rent it back and get 80% to value vs a reverse mortgage and get the cash up front.

if he passes on a reverse mortgage and noone wants the house then the bank gets it. even if he only got payments for a year. if someone wants it they have to pay the bank back.

They can choose to collect a lump sum payment, that way if they only stay there a short time, the RM company doesn't get property for very little invested.

[deer farmer]

My mother did it and got 600 per mo and she was happy with it. After she passed, I had 11 months to sell the house. Housing market at the time was bad and homes were at rock bottom, but I sold it in about 7 mo. Had I not sold it the bank would have taken it. She needed the 600 and it worked out for her.