Reverse mortgages, sinkholes or lightning losses...what happens?

Closed Thread
Thread Tools
  #1  
Old 03-08-2021, 11:50 AM
manaboutown manaboutown is offline
Sage
Join Date: Aug 2009
Location: NJ, NM, SC, PA, DC, MD, VA, NY, CA, ID and finally FL.
Posts: 7,378
Thanks: 12,796
Thanked 4,573 Times in 1,749 Posts
Default Reverse mortgages, sinkholes or lightning losses...what happens?

According to Wade Pfau, a natural disaster (such as a sinkhole or a lightning strike) could cause a reverse mortgage to become due and payable.

On page 132, of his book, "Reverse Mortgages, 2nd edition", Wade addresses dealing with natural disasters:

"However, the loan balance could become due and payable if one has insufficient insurance to rebuild or decides to move to a new location because it is impossible to rebuild on the same property."

Now that is a scary scenario given the sinkhole and lightning events that occur within The Vilages!
__________________
"No one is more hated than he who speaks the truth." Plato

“To argue with a person who has renounced the use of reason is like administering medicine to the dead.” Thomas Paine
  #2  
Old 03-08-2021, 12:11 PM
Stu from NYC Stu from NYC is online now
Sage
Join Date: Feb 2020
Posts: 12,438
Thanks: 1,161
Thanked 13,938 Times in 5,277 Posts
Default

I wonder how cousin brucie would belittle you if you posted this on one of his many many threads.

thanks for sharing though
  #3  
Old 03-08-2021, 04:53 PM
Plinker Plinker is offline
Senior Member
Join Date: Mar 2019
Posts: 108
Thanks: 23
Thanked 309 Times in 115 Posts
Default

Quote:
Originally Posted by Stu from NYC View Post
I wonder how cousin brucie would belittle you if you posted this on one of his many many threads.

thanks for sharing though
Well, we now know he is an expert on managing home foreclosures, tax liens, law suits and bankruptcy. He would just walk away. He doesn’t seem to be too concerned about his creditors.
  #4  
Old 03-08-2021, 07:20 PM
Dotneko Dotneko is offline
Senior Member
Join Date: Nov 2020
Posts: 451
Thanks: 1,629
Thanked 683 Times in 228 Posts
Default

I find your (general) love/hate relationship with him amusing. You get angry that he posts, and then you go and dare him to reply. Make up your minds. I understand it is a sport for you, but you are more annoying than he is.
  #5  
Old 03-08-2021, 08:05 PM
Toymeister's Avatar
Toymeister Toymeister is offline
Platinum member
Join Date: Sep 2016
Posts: 1,680
Thanks: 343
Thanked 2,335 Times in 729 Posts
Default

To bring perspective, Wade Pafu is often touted as a Reverse Mortgage 'expert'. In fact he operate a financial services company which sells RMs annuities and other financial products. He is in a position to sell you what you need, but the annuities and RM salesman like to quote him to sell their products.
  #6  
Old 03-08-2021, 09:41 PM
DIY&Save DIY&Save is offline
Junior Member
Join Date: Nov 2020
Posts: 7
Thanks: 6
Thanked 31 Times in 17 Posts
Default

Quote:
Originally Posted by Dotneko View Post
I find your (general) love/hate relationship with him amusing. You get angry that he posts, and then you go and dare him to reply. Make up your minds. I understand it is a sport for you, but you are more annoying than he is.
I’m pretty sure there is no anger involved. I do agree that it is sport as the RM salesman continues his campaign of deception and denial. I certainly don’t find his factual responses annoying.
  #7  
Old 03-09-2021, 06:38 AM
Mohawksin Mohawksin is offline
Senior Member
Join Date: Dec 2016
Posts: 123
Thanks: 383
Thanked 80 Times in 37 Posts
Default

Quote:
Originally Posted by DIY&Save View Post
I’m pretty sure there is no anger involved. I do agree that it is sport as the RM salesman continues his campaign of deception and denial. I certainly don’t find his factual responses annoying.
No, but his responses are a terrible waste of electrons.
  #8  
Old 03-09-2021, 07:06 AM
joseppe joseppe is offline
Senior Member
Join Date: May 2018
Location: Fenney
Posts: 136
Thanks: 17
Thanked 194 Times in 65 Posts
Default

Quote:
Originally Posted by manaboutown View Post
According to Wade Pfau, a natural disaster (such as a sinkhole or a lightning strike) could cause a reverse mortgage to become due and payable.

On page 132, of his book, "Reverse Mortgages, 2nd edition", Wade addresses dealing with natural disasters:

"However, the loan balance could become due and payable if one has insufficient insurance to rebuild or decides to move to a new location because it is impossible to rebuild on the same property."

Now that is a scary scenario given the sinkhole and lightning events that occur within The Vilages!
Isn't the same true of a regular mortgage? If you are underinsured and can't rebuild you'd still owe the mortgage wouldn't you? A RM is still just a mortgage. If you loose the collateral the debt could become due and payable with any mortgage or collateral based loan.
Closed Thread

Tags
reverse, lightning, sinkhole, payable, due


You are viewing a new design of the TOTV site. Click here to revert to the old version.

All times are GMT -5. The time now is 05:53 PM.