[Toymeister]

It is my understanding that the salesman who profited from selling the RM takes care of the mowing until it is sold. Responsible ethics I have been told by someone who sells RMs. I read about it here, can't remember his name...

(Humorous posting)

[manaboutown]

Originally Posted by Joe V.

And these loans have worked for tens of thousands of people. Right at the end of your cut and paste job the title of that column said reverse mortgages can backfire on homeowners. To me that states most of these loans do not.

Sharpen the ax you grind. It is getting dull.

Yah, It's kind of like Russian Roulette ...

[jimjamuser]

Originally Posted by manaboutown

They did not work for these folks.

"Wrongful reverse mortgage foreclosures are at a crisis stage, and there are very few if any protections from the bad practices of the servicers. And the lack of any meaningful oversight from HUD only makes things even more dangerous for seniors.

Here are just some of the reverse mortgage horror stories that have been experienced by Florida’s elderly population:

• A mortgage company filed a mortgage foreclosure against a 92-year-old woman for failure to pay 27 cents after first suing, claiming wrongly she did not live in her home of 40 years.

• An 80-year-old homeowner agreed to a repayment schedule for missed insurance payments — but foreclosure was filed anyway

• A 76-year-old homeowner repaid insurance and tax payments, yet the bank found a new reason to foreclose.

• An 84-year-old homeowner was accused of not living in his home when he is wheelchair-bound and almost never leaves it.

The widower, who has extreme difficulty hearing because of his age and health issues, was sued based on a wrongful allegation that he no longer lived in the home. The bank would not accept an affidavit from him and his daughter/caretaker as proof he lived in the property and insisted on taking the case to trial, further wasting judicial resources.

The case was eventually dismissed.

• An 82-year-old homeowner was accused of not living in his home during the time a separate department of the same bank was in regular communication with him.

• A 75-year-old widow faced foreclosure for purportedly no longer occupying the property. Her bank demanded she fill out and return an “occupancy letter” — which she did. She was also in regular contact with the bank regarding her insurance. Despite all of this, the homeowner was sued anyway.

• A 73-year-old widow lost her home to foreclosure because one word was missing from one page of her loan documents. She and her husband took out a reverse mortgage; her husband wanted to safeguard the family home after he passed away. Instead, because the word “borrower” was missing from one page of dozens of mortgage documents, she lost her home.

Jim Kowalski is the CEO of Jacksonville Area Legal Aid."

From: Guest Column: Reverse mortgages can backfire on homeowners - Opinion - The Florida Times-Union - Jacksonville, FL

Great post!

[dwhite5773]

Where’s that jack wad that always posts about RM’s? Imagine that!

[DIY&Save]

There are many programs that the government and therefore we as taxpayers support that are critically vital to the well-being of a prosperous country. What I don’t understand is why the RM program that may benefit the borrower causes so much collateral damage. The lender made a bundle, the salesman made a substantial commission, yet taxpayers, neighbors and potentially heirs bear the negative impacts. I don’t recall ever co-signing on a RM loan so why should it negatively impact me? When the lender forecloses they contact the MMI Fund and are made whole. This is at our expense. Let the lenders bear ALL of the associated costs when the value of the foreclosed home is less than the accumulated fees and interest. I believe the lender may act far quicker in resolving property issues when a delay is costing them money.
What am I missing (please be gentle)?

[retiredguy123]

Originally Posted by DIY&Save

There are many programs that the government and therefore we as taxpayers support that are critically vital to the well-being of a prosperous country. What I don’t understand is why the RM program that may benefit the borrower causes so much collateral damage. The lender made a bundle, the salesman made a substantial commission, yet taxpayers, neighbors and potentially heirs bear the negative impacts. I don’t recall ever co-signing on a RM loan so why should it negatively impact me? When the lender forecloses they contact the MMI Fund and are made whole. This is at our expense. Let the lenders bear ALL of the associated costs when the value of the foreclosed home is less than the accumulated fees and interest. I believe the lender may act far quicker in resolving property issues when a delay is costing them money.
What am I missing (please be gentle)?

The banking industry spends millions on lobbyists who have been very successful at getting the Government to allow them to offer many financial products to customers where the banks incur little or no risk at the expense of taxpayers. Reverse mortgages are one of those products. The SBA loan and the VA loan programs are two others. Years ago, my wife wanted to borrow money to build her veterinary clinic. We could afford to borrow it and make the payments, but the bank forced us to apply for an SBA loan guarantee only because they could make money on the loan with zero risk. They didn't even care about our credit rating, and even provided us with two rejection letters from other banks to justify the guarantee. Veterans could and should make a down payment on a house, but they can get a no money down loan, which I think is an irresponsible financial decision, and often doesn't work out well for them. In these cases, the banks make money with almost no risk.

[Dorebea]

‘Nuff said

[CoachKandSportsguy]

After reading more of this thread, I realize that humans are involved. Humans tend to make a mess of good ideas with their occassional greed, fear of loss, and desire to control others. . .

best to always avoid dealings with humans for financial issues. . . that being said, make sure your legal documents are up to date in case you don't have a plan beyond the living.

[EdFNJ]

Originally Posted by manaboutown

They did not work for these folks.

"Wrongful reverse mortgage foreclosures are at a crisis stage, and there are very few if any protections from the bad practices of the servicers. And the lack of any meaningful oversight from HUD only makes things even more dangerous for seniors.

It worked WONDERFULLY for my father who passed away at 93 for his condo in S.FL. after my mother passed. Took over 1 1/2 years to complete foreclosure and another 1 1/2 years to finally get sold. Everything went exactly as they told him it would when he signed on the dotted line. They (bank, condo, utilities etc) tried to scare ME but without success. Lawyer I consulted with down here said to just ignore all the mail since I wasn't part of the RM and he had no estate except for a 14 yr old car.