 Semi OT: Reverse Mortgage (by S i d [MO]) Sep 5, 2014 7:44 AM
 Semi OT: Reverse Mortgage (by shawn sisco [MO]) Sep 5, 2014 8:25 AM
Semi OT: Reverse Mortgage (by LL in [IN]) Sep 5, 2014 11:20 AM
Semi OT: Reverse Mortgage (by AllyM [NJ]) Sep 5, 2014 11:32 AM
Semi OT: Reverse Mortgage (by BillS [CO]) Sep 5, 2014 11:47 AM
Semi OT: Reverse Mortgage (by George [NJ]) Sep 5, 2014 11:48 AM
Semi OT: Reverse Mortgage (by Jennings [IN]) Sep 5, 2014 12:50 PM
Semi OT: Reverse Mortgage (by RB [MI]) Sep 5, 2014 5:54 PM
Semi OT: Reverse Mortgage (by Britt [NC]) Sep 8, 2014 6:51 AM
Semi OT: Reverse Mortgage (by John... [MI]) Sep 8, 2014 7:46 AM
Semi OT: Reverse Mortgage (by S i d [MO]) Posted on: Sep 5, 2014 7:44 AM
Message:
Just recently we talked over the fact that there are a lot of Baby Boomers getting ready to retire who have less than $50K set aside for retirement. Of that roughly 33%, I am guessing at least some are homeowners who may decide to "tap into their equity" via reverse mortgages.
I've been hearing a lot more commercials lately touting the reverse mortgage as the solution for folks who failed to save enough for retirement. In some instances you get to stay in your home until you die even if all your equity is gone, but again there are taxes, insurance, and maintenance costs and I wonder how many folks who have no savings and burn thru all their home equity will afford THOSE bills? The bank might not take the house, but if there's a hole in the roof and 3 years real estate taxes delinquent, I'm guessing someone is going to have to move...
P.S. For the record, I think reverse mortgages suck. But I'm more curious how you guys think this is going to affect the real estate and tenant market in about 10-15 years--the typical length for equity draw down to zero in reverse mortgages. Think we might see a bubble of houses taken back by banks upon death or insolvency of the borrowers that have tons of deferred maintenance? --108.250.xxx.xxx |
Semi OT: Reverse Mortgage (by shawn sisco [MO]) Posted on: Sep 5, 2014 8:25 AM
Message:
My guess is that the reverse mortgage product won't appeal so much to the paid for house crowd as much as the crowd with a small mortgage balance. They will see it as a way to reduce/eliminate monthly payments.
It will put more houses on the market with deferred maintenance issues, but I doubt it will be anyone's idea of a wave. --64.251.xxx.xxx |
Semi OT: Reverse Mortgage (by LL in [IN]) Posted on: Sep 5, 2014 11:20 AM
Message:
They are such BAD deals! A close relative did this, when left with little retirement money, through no fault of her own in that particular case.
You only "win" in this deal if you live for a very long time after taking it out. Otherwise, the fees are just killers. This relative lost a huge chunk of equity simply by failing to live any longer than 5 years after taking it out. --50.129.x.xxx |
Semi OT: Reverse Mortgage (by AllyM [NJ]) Posted on: Sep 5, 2014 11:32 AM
Message:
The reverse mortgage company made my neighbor fix everything in the house in and out before they granted the reverse mortgage.
The mother is mid 80s now and the husband is in a nursing home as he is very ill and won't be coming home.
Not sure what happens next but I may buy that house if it's not too expensive.
Olde Miss Ally --50.182.xxx.xx |
Semi OT: Reverse Mortgage (by BillS [CO]) Posted on: Sep 5, 2014 11:47 AM
Message:
What I have seen with these deals is since the lending companies got burn the last housing bubble they have really turned them back this time around. The ones I have run into have no prepayment penalty but and the owner can always sell and usually pay off the loan and pocket some. The largest downside is the deferred maintenance.
In reality, they just allow people to put off decisions that should be made sooner rather than later. --75.160.xxx.xxx |
Semi OT: Reverse Mortgage (by George [NJ]) Posted on: Sep 5, 2014 11:48 AM
Message:
I looked at a 2 family a year ago, the older lady who owned had a 3ooK reverse mortgage, she was gone and the place was a wreck. The bank sold it for under $70K.
I think they have their place, For an older person with a paid off house and no heirs, or heirs that don't need the money from the house, then why not ease their retirement with the payments from the house? --76.6.xx.xx |
Semi OT: Reverse Mortgage (by Jennings [IN]) Posted on: Sep 5, 2014 12:50 PM
Message:
I am sick and tired of hearing Fred Thompson pimp reverse mortgages. I mute the TV when he comes on. The reason there are so many advertisements on TV is there are a lot of fees and profit for the company issuing the reverse mortgage. --67.174.xxx.x |
Semi OT: Reverse Mortgage (by RB [MI]) Posted on: Sep 5, 2014 5:54 PM
Message:
Do not enter ! --97.95.xxx.xxx |
Semi OT: Reverse Mortgage (by Britt [NC]) Posted on: Sep 8, 2014 6:51 AM
Message:
They are not a good deal for anyone. And HUD has this regulation they have to be sold for 100% of appraised value. They won't turn on utilities for inspections. Absurd. --24.163.xx.xx |
Semi OT: Reverse Mortgage (by John... [MI]) Posted on: Sep 8, 2014 7:46 AM
Message:
I think they are decent for one group only: Elderly people who have no one that they plan to will anything to. For those people, these can make real sense -- so that they can use that equity at the ends of their lives. Otherwise, that equity will be worthless to them at death.
I think that is a very limited group, of course -- but I think it is a reasonable OPTION for those sorts of people.
- John...
--72.173.xxx.xx |
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