Anyone here do the Reverse Mortgage Thing?
My house is paid for, I have been having various serious health issues. I am only 58.( I hope to be able to hang on for the next 5-10 years. It appears these things are designed for people 62-65 +. My only Son, would not live here. He lives out West. (The only person I would leave it to.)
I am thinking I may have to explore SS Disability. (Seriously debating giving it a run.) I know/realize it has a 65-70 % initial decline rate.
Seems like $$ I can access/utilize.
Any one here have any insight/experience?
I would appreciate any insight.
Thanks in advance.
I am thinking I may have to explore SS Disability. (Seriously debating giving it a run.) I know/realize it has a 65-70 % initial decline rate.
Seems like $$ I can access/utilize.
Any one here have any insight/experience?
I would appreciate any insight.
Thanks in advance.
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A reverse mortgage is or ought to be a "last arrow in the quiver" financial option. There are so many ways for the bank to scrw you over with one that you should explore any and all other options first. And then only explore an RM with a lawyer or accountant at your elbow. 0 -
ditto what he said...absolute last on list..RM's are an easy way for the unwary to screw themselves 0 -
I share Rocky's thoughts; you need to be careful.
First get an offer from a bank, then have your lawyer figure out if it is a good deal for you. Banks vary, real estate values vary. Some banks & finance companies got burned in the 2008 housing market collapse, so you need to be careful to be sure that their offer is fair.
Your health problems may force you to move to assisted living or a nursing home, which means you give up the house, ready or not. You need to be able to meet your monthly expenses from your pensions, investments, & any other income. SSDI can take up to 2 years to get benefits, so you want to take that into consideration.
Neal0 -
you may try the SSD route, I had heard horror stories myself. I applied in october and was approved in december, christmas eve exactily, got first check in March following year. now my company pension was different story, SSD didn't mean squat to them they had to have their doctors evaluate it, took over 9 months and then they had to pay backpay but still they drug it out just for spite.
worst that can happen Ken is they deny it, but you do have to be without a paycheck for at least 6 months prior to qualify, good luck whatever route you go, but I too would save that reverse mortage thing as last resort.........0 -
off subject but i hear about these guys all the time on the radio , maybe they could help you , check out the blog
https://adventknows.com/blog/
https://adventknows.com/0 -
I had a friend in Alaska that went that route. He basically had no retirement after he got too old to fly or trap. So he and his wife did the RM thing and used the money to open a little gun shop.
He had several medical problems while she was fairly healthy.
One morning she did not wake up.
John could no longer stand to live in their house.
So, he died.
$$$$$$$$$$$$$$$$$$$$
My MIL had inherited her mother's house (free & clear) but there are expenses and her savings were dwindling.
She planned to leave her house to my wife but it appeared she would have to sell it just to have money to live on.
I bought her house, with life estate, for something less than full apprasial.
Life Estate says it is still her house until she dies.
We paid upkeep, taxes, insurance, etc. And she kept her home.
Sorta like RM but I'm not a greedy corporation.
Just a couple things to consider.0 -
Tom Selleck still does the RM ads on TV. In fine print it says that if you fail to pay the taxes on the home, or fail to keep the home well maintained , they can step in and boot you out. I think most people would be ahead financially to just sell the home and rent a place. 0 -
I appreciate any and all insight. I am trying to figure things out, and what my options are. Thank you. 0 -
I would definitely look into SSDI. I went in to the local SS office just to check and see what my benefit would be starting at 62, FRA and 70. The person and I got to talking and I told him about my medical condition (Stage 4 cancer). He said I should apply for SSDI which I promptly did and was approved very quickly. There is a minimum waiting period (5 months) so the sooner you apply the sooner benefits could possibly start. If you have documented issues the physician will need to fill out some forms. This is key to approval. If you go to the SS website they have a list of issues that make you eligible for SSDI. If you have items on that list it is just a matter of filling out the paperwork. If your problems are not easily identifiable I can see where this would cause some delay or rejection of the claim. I would be glad to provide any guidance from my experience with the process. Just PM me if you would like. 0 -
Maalox wrote:I would definitely look into SSDI. I went in to the local SS office just to check and see what my benefit would be starting at 62, FRA and 70. The person and I got to talking and I told him about my medical condition (Stage 4 cancer). He said I should apply for SSDI which I promptly did and was approved very quickly. There is a minimum waiting period (5 months) so the sooner you apply the sooner benefits could possibly start. If you have documented issues the physician will need to fill out some forms. This is key to approval. If you go to the SS website they have a list of issues that make you eligible for SSDI. If you have items on that list it is just a matter of filling out the paperwork. If your problems are not easily identifiable I can see where this would cause some delay or rejection of the claim. I would be glad to provide any guidance from my experience with the process. Just PM me if you would like.
Thank you Sir. I appreciate the offer, and the advice.0 -
tom Selleck a man you can trust 
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Well the end road is not good. Medicare will take the home for hospital bills or nursing home. The " out" leave the home in a Life Estate. You stay in it till you die or somewhere else till you die. The person you leave it to ..the remainderman ... gets it when you die. Now the good news... Medicare cannot take that home away for bills, IF a 5 yr period has elapsed since the Life Estate started. 0 -
Exactly, Select-fire.
My MIL felt, at first, like it was no longer her home but after getting the bills off her shoulders and making a few repairs and improvements that she had not been able to afford she was tickled. She even got that new stainless steel flu to replace the one she had worried about.
She had cancer and when she went to Medicare, that lady told her selling me the house with Life Estate was the smartest thing she could have done.
She rushed home to tell me.
BTW, odd we are talking about her today, she passed today, the day after Christmas in 2014. We miss her.0 -
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I do a lot of following of investment advisors and such, Bob Brinker, Dave Ramsey etc, and they ALL say NO to reverse mortgages. I have never checked into one but to me it seems like a good deal only for the bank, not you. 0 -
Thanks for the advice and input Guys, I appreciate it.
It did sound scammish. I was wondering if it had any benefits at all. Does not really sound like it.0 -
A lot of horror stories but......https://www.consumer.ftc.gov/articles/0192-reverse-mortgages 0 -
OK :
Dave Ramsey says Do Not do these !!!!
Thanks !!!0 -
While it can be useful for a few people, everything Rocky said applies. 0 -
A lot of horror stories but......https://www.consumer.ftc.gov/articles/0192-reverse-mortgages.
Mom and her husband got one.
No brainer for them, they owe nothing until they both die, than the bank gets their money back plus interest.
Its a non recourse loan if the house appraises at less they can walk with no penalty
If the house goes up in value the bank only gets the loan plus interest anyway
They took the cash out of the house they want to stay in rather than sell
They have no plans to leave the home or anything else to any heirs
They have a good income they can afford the taxes and upkeep, further if you don't pay your taxes or keep a house up most mortgage companies can take it too!
If they sold the house they had to go somewhere and would have paid a realtor 4-6% plus other costs of moving Etc.0 -
Ken, Mogley there has it pretty much right.
I don't have one but I have originated about four in my job as a bank lender.
That said, no one I closed used the money to live off of, they still owed money on the place and the RM allowed them to pay that off and not have a monthly payment. So their monthly incomes went farther.
You are way too young, I believe you have to be at least 65. The amount is set by an appraisal and is limited to a very low loan to value to allow the lender to still come out after years of interest accumulation. You age also has a big factor in how much you will get, the older you are the higher the percentage they will lend you. When you are not able to live there any longer, out of the home for one year and one day, that triggers the clause that the home must be sold.
Your heirs can still control the sale, if you are in a home or in the grave. They get any money from the sale above the payoff, just like a regular mortgage. You will NEVER leave someone else holding the bag for this debt.
They have horrendous fees, which are taken off the top of the amount you are allowed to borrow. Most of the ones available were (are?) backed by the FHA, mostly so lenders will participate. The reason you didn't hear as much about them for a while was all of the players quit when the recession cost them their a$$.
One of the first things you have to do when you apply is do some telephone or in person counseling on whether or not you should really do this. The lender's will not talk to you further until you have a completion certificate from an approved counselor.
Hope this helps, if you have specific questions, I will try to find the answer for you.
KC0 -
NOPE, JUST ANOTHER SCAM PUT FORWARD BY THE MONEY GRABBERS. 0 -
"Remember how you used to see the reverse mortgage thing on TV all the time a while back?? Notice how you hardly ever see the reverse mortgage thing on TV now??? "
Still see those RM ads on the "geezer channels" (GRIT specifically). Tom Selleck giving the "honest Injun" face and telling everyone how this is the greatest thing since sliced bread.0
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