Originally Posted by dewilson58 (Post 1892698)

They lost their houses because they could not pay RE Taxes & Insurance, NOT because of a reverse mortgage. They would have lost their house without the RM and probably sooner.

:ho:

Originally Posted by valuemkt (Post 1892702)

Not sure I agree with your conclusion.

Originally Posted by Dond1959 (Post 1892638)

getting some financial advice before using this product makes sense.

Originally Posted by Jayhawk (Post 1892720)

That is actually the LAW.

Originally Posted by Stu from NYC (Post 1892722)

The question is are they giving valid financial advise explaining the negatives.

My feeling is they do not give a balanced opinion.

Originally Posted by John_W (Post 1892619)

I have a reverse mortgage for 3 years through Citizens Bank. The only way you can be forced out is if you fail to pay your taxes and insurance. They asked me the second year to send them a fax of my insurance, that's the only contact I have with the bank in 3 years.

The only other way is if you no longer live fulltime in the home, they will force you to sell the home. After the home is sold and they pay off the amount you have taken, plus initial closing costs, in my case $9,000 and interest, in my case about $200 a month. Right now I would owe them about $65,000, I took a $50,000 draw in the beginning.

If you own your home, you have a lot of equity that is going to waste if you never plan to resell, which in my case I don't plan on moving again since I've been in this home ten years. If I were to sell the home, we would pay back the bank $65,000 and the rest would be ours, and this is for receiving $50,000 three years ago.

Originally Posted by dewilson58 (Post 1892698)

They lost their houses because they could not pay RE Taxes & Insurance, NOT because of a reverse mortgage. They would have lost their house without the RM and probably sooner.

:ho:

Originally Posted by manaboutown (Post 1892746)

well educated fully accredited professional financial planner.

Originally Posted by manaboutown (Post 1892746)

The required counseling can merely consist of a short phone call at a cost to the borrower of $100. "Counseling" was mandated by the government as part of its attempt to reform lending practices. I do not consider the required phone call true counseling which would require an in-depth analysis by an independent well educated fully accredited professional financial planner.

Originally Posted by Plinker (Post 1892546)

RM FORECLOSURES:

From the Naples News, 2019

15,000 Floridians at Risk of Foreclosure and Homelessness:

Earlier this year, an 83-year-old woman lost the home she has owned for more than 40 years.
She is one of thousands of senior Floridians facing the same outcome. But what sounds like a great deal can have serious pitfalls. Instead of providing a secure financial future for senior homeowners, nearly 15,000 older Floridians out of the 85,000 currently holding reverse mortgages are in danger of losing their homes in the coming years, according to data from the U.S. Department of Housing and Urban Development.
Already, 16,654 reverse mortgage holders have gone into foreclosure in the five years that ended December 2017, the most by far in the U.S. and nearly double the second-most — in California.
Reverse mortgages don’t get a person out of debt, they put people into more debt. It may solve an immediate cash-flow problem, but may not provide any long-term financial security. And homeowners whose circumstances change in ways they didn’t anticipate find themselves without their most valuable asset at an age when they need it most.

I had no idea it was this bad.
TV appears to be a mecca for these and similar sales pitches. A fee-only fiduciary financial planner can determine what is appropriate and will provide alternative options.

Originally Posted by John_W (Post 1892619)

I have a reverse mortgage for 3 years through Citizens Bank. The only way you can be forced out is if you fail to pay your taxes and insurance. They asked me the second year to send them a fax of my insurance, that's the only contact I have with the bank in 3 years.

The only other way is if you no longer live fulltime in the home, they will force you to sell the home. After the home is sold and they pay off the amount you have taken, plus initial closing costs, in my case $9,000 and interest, in my case about $200 a month. Right now I would owe them about $65,000, I took a $50,000 draw in the beginning.

If you own your home, you have a lot of equity that is going to waste if you never plan to resell, which in my case I don't plan on moving again since I've been in this home ten years. If I were to sell the home, we would pay back the bank $65,000 and the rest would be ours, and this is for receiving $50,000 three years ago.