Reverse Car Loan vs. Reverse Mortgage
 

Reverse Car Loan vs Reverse Mortgage

Here is how it works:
1. I show up at Fancy Cars R Us in Ocala and choose a shiny new whip. The slick salesman puts me in touch with a reverse car lender. I can see the saliva drool down his chin as he anticipates another $6,000 referral fee. To my surprise, I have qualified for a 5-year loan for $50,000 and no money down as all fees and interest will be wrapped into the loan. The MSRP on the car is only $30,000.
2. After 3 years, I decide to trade it in. Unfortunately, I chose to never wash, vacuum or change the oil since I took delivery. Also, it is parked on my driveway under a tree full of pigeons. The neighbors are not impressed. Even my dog refuses to get in the car. Apparently my once shiny new whip is now a hooptie. I called my heirs but they had no interest in a dilapidated eyesore.
3. I contacted the reverse car lender and was informed that the car is not worth anywhere near what I owe on it. They tell me my balance has ballooned to over $75,000 in just 3 years. Depressed, I decide to exercise a bit. Unfortunately, while trying to return a high lob during my pickle ball match I stumbled back and suffered a horribly debilitating injury requiring me to spend the next few years in a rehabilitation facility thereby preventing me from driving.
4. The lender had no worries as they informed me they would be made whole by the TGFF (taxpayer gets fleeced fund) to make up any deficiencies.

So easy, even a caveman can understand it (I miss those GEICO commercials)!

In many cases, yes. But, the OP 's point is that the RM program is ripping off the taxpayers. It is sad that so many taxpayers don't care that their money is being wasted.

Some people are obsessed and haven't got a clue how the real world works. They haven't ever heard that Fannie Mae (quasi-governmental entity) suffers billions in losses every year, or on FHA loans that had as little as 3.5% down payment (government program). They don't know that the government pays out way more reimbursement for defaulted Veterans Administration loans (due to 100% financing in most cases) than they do for HECM reverse mortgages. Maybe the uninformed can rag on the Veterans and FHA lenders now. It seems to be sport for 4 or 5 posters here.

I don't like waste and most taxpayers don't like waste.........but do the math, it cost me less than $5.00. Doesn't seem like much.

fleeced? Hmmm, I like the "f" but maybe there's a better adjective.
Interesting tale, Plinker, thanks

I spent hundreds of millions of taxpayers dollars in my career. I can assure you your tax dollars are being wasted in many ways to fix social causes, many of which are simply a figment of political leaders minds.

I would concentrate your efforts on fixing those problems first.

You clearly don’t know if thing about reverse mortgages. Your entire post was ridiculous

I love it. You wonder how people can get fleeced? Others on the thread say that "people can make their own decisions". If that is the case then how can we explain the dire financial situation of some 80+% of the retired people in the country? On the other hand we can at least applaud those living in TV who at least made one good decision.

Meh. It gets my back up when I get mansplained to, and poorly at that.

Oh lord , praying for you .

Parody:(Webster)
“an imitation of the style of a particular writer, artist, or genre with deliberate exaggeration for comic effect”

He is poking fun at and exposing the RM salesman on this site for spreading false and misleading statements. I suspect if the salesman was peddling an index annuity and refused to acknowledge all of the facts he would parody index annuities. There are many people in TV that are quite adept at managing their finances. However, there are many that are not. Otherwise, there would be far fewer free chicken dinner seminars and dishonest sales practices.
The broader topic of governmental (taxpayer) waste has been and will be with us forever.

The big difference I see is that a car never appreciates like a home does. They loose value the minute you drive them off the lot and it is all downhill from there.

Foolish perhaps but in my view happiness is separating things you can do something about from those you cannot and only concern yourself with things you can do something about. My cholesterol count is low. My wife, sits there screaming in foul
language at the TV and radio. She is on meds and still has high cholesterol.

Home appreciation? We sold our home before moving to the villages. A home we had lived in for 40 years. Wow we got 6x what we paid for it. Reality check, due to inflation everything else went up 6x as well. Oh, our real estate tax, same home, went from 2,000 to 10,000. Other than electronics, due to growth in power of computer chips everything has gone up. Aside, I still have coffee cans used for screws and that kind of stuff that were store priced at ninety-nine cents. You of course can't live in the stock market or drive a stock but reality is in terms of investment the market in an investment a home is a place to live.

A whip must not be what I imagine... and a hooptie?!😂