Quote:
Originally Posted by Plinker
It Can Affect Any Dependent in the Home.
If the elder who needs care in a facility has non-borrowing family members in that home, the loan is still due. Anyone left in the home must move out, go to a care facility or be taken in by someone else.
The Amount the Lender Will Loan is Limited
If the elder borrows, say, $200,000, and ends up needing care 24/7, that reverse mortgage cash she got will be exhausted in about two years or less.
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You can think of any scenario and pull out the worse points and say, this terrible. What if there are no dependents living in the home? What if there no children or any other heirs to leave your home to? What if this will be your last home and you plan never to move again.
If you borrow $200K, then your home was appraised for about $450K, someone didn't plan to well if they need $200K on their first draw, maybe they bought too much home. Second, a home worth $450K in TV could be sold and you can downsize easily to a cottage, a CYV or a patio villa, something they should have done to begin with and had more cash on hand. There's 3 BR 2 BA 2 Car cottage in St. James right now for $267K.
What I always find odd are people who don't know another persons situation giving them advice!