[molddude]

The 83 year old lost her money immediately to a contractor. ( that only happens to RM clients)
"Several" years later she had to enter "nursing homeS".
She was behind on her taxes, insurance , but the "journalist does not elaborate". ( falling into debt, that only happens to RM clients I guess)
The article cited many falsehoods, but what form of "news" does not these days?
Thank goodness no one else loses their home when they fall into debt.

[Stu from NYC]

Originally Posted by molddude

The 83 year old lost her money immediately to a contractor. ( that only happens to RM clients)
"Several" years later she had to enter "nursing homeS".
She was behind on her taxes, insurance , but the "journalist does not elaborate". ( falling into debt, that only happens to RM clients I guess)
The article cited many falsehoods, but what form of "news" does not these days?
Thank goodness no one else loses their home when they fall into debt.

There are other reasons people lose their home than RM's you know.

[rmd2]

I don't understand why people are responding to this thread which has been used continuously for drumming up Reverse Mortgage business. Moderator please shut this advertiser down permanently!

[dewilson58]

Originally Posted by rmd2

I don't understand why people are responding to this thread which has been used continuously for drumming up Reverse Mortgage business. Moderator please shut this advertiser down permanently!

Who is drumming???

[Grunt 1946]

So, just for my information, what would happen if you took all the money on your RM out this year but were still living in the home in 2040? Does the money get paid back at that time, assuming your dead, or is there a time limit on when it gets paid back? What if the home is worth 3 times as much in 2040, can you take out a larger RM?

[bruce213]

Originally Posted by John_W

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.

Question for John W.
As I understand it you are paying monthly interest of $200.00 and you owe the bank $65000, which you could pay off anytime or when the house is sold?

[Stu from NYC]

Originally Posted by dewilson58

Who is drumming???

I do think you know exactly whom we are speaking of

[retiredguy123]

Originally Posted by Grunt 1946

So, just for my information, what would happen if you took all the money on your RM out this year but were still living in the home in 2040? Does the money get paid back at that time, assuming your dead, or is there a time limit on when it gets paid back? What if the home is worth 3 times as much in 2040, can you take out a larger RM?

When you die, your heirs are required to either pay off the loan, or sell the house. The proceeds from the sale are used to pay off the loan, and the heirs can keep any excess. If selling the house will not produce enough money to pay off the loan, the heirs can either allow the bank to foreclose, or they can just refuse to accept the inheritance altogether.

If you have a reverse mortgage and the house increases in value, you can refinance the loan and possibly take out more money.

[rphil11ort]

I have been in the mortgage business for over 37 years. When I moved here I took a reverse to buy my property. The new approval guidelines are that you have to have enough income or cash reserves in order to pay your taxes , insurance and maintenance. The only way they can foreclose is if you move dont pay the cost of maintaining your property or taxes and insurance. Even if you move out you have a year to year and a half to resolve what you are going to do with the loan. I have bought 2 properties that had reverse mortgages and they where both under water. What is nice about them is that if that happens they can not go after.the estate for the shortfall. If I did a regular. Mortgage when I got here it would have cost me more that $1000 per month to live.here. now I can pay all my expenses with my social security and small pension. Before you can take out an reverse mortgage you have to take a third party class to make sure you understand what you are getting involved in

[dewilson58]

Originally Posted by Stu from NYC

I do think you know exactly whom we are speaking of

I haven't seen a salesmen on this thread.
This thread tone is against RM...............kinda unselling.

[Jayhawk]

Originally Posted by rmd2

I don't understand why people are responding to this thread which has been used continuously for drumming up Reverse Mortgage business. Moderator please shut this advertiser down permanently!

You do realize he is only advertising in the Mortgage section which is perfectly acceptable.

Or TOTV could drop advertisers and you can pay the bills for them to keep this open.

You know the poster and the topic he is PAYING to advertise. Don't open the posts and give yourself chest pains.

[John_W]

Originally Posted by bruce213

Question for John W.
As I understand it you are paying monthly interest of $200.00 and you owe the bank $65000, which you could pay off anytime or when the house is sold?

That's why you have a RM and not an equity loan, there are no payments. The bank appraises the home's value and you withdraw from a fund that is about 45% of that amount. It's paid back when both occupants die and they get the home. If the home is sold for less than the amount owed, then whoever you designated will receive the balance. The $200 a month is part of the loan that has to be paid off.

In order to qualify you must own the home outright and both occupants must be 62 years of age. The bank has calculated the length and risk of what they're doing just like you will calculate the risk of what you're doing. If I don't plan on moving, have no heirs, I don't see any risk in using cash that would not be available otherwise.

[EdFNJ]

My father had a RM and it was the best thing that could have happened for him. He died at age 93, had pulled out well over $90,000 on a condo worth $50K with his RM and after he passed the bank could do what they want with it. So far it has sat empty and foreclosed upon for 3+ years in 90 degree south Florida heat and must be rotting away from mold inside. No way he could have continued to live there without it. When he applied for the RM they appraised his little condo for $180,000 when they were selling for $50-60K.