[Stu from NYC]

Originally Posted by Challenger

Take advise about not buying Title insurance with a big grain of salt . Moat people who are really informed about real estate transactions will avise you to buy the policy. Penny wise and pound foolish !!!

Very true

[rjm1cc]

Be sure to see if there is a bond outstanding.
I would get title insurance and have the title company do the closing.
You can also transfer your save out home inflation adjustment to you new home.

[John_W]

I took the Reverse Mortgage class from Citizens Bank a couple of years ago, they usually give it every other month at Palmer Country Club. Most people are aware that if you're at least 62 and own your home, you can get cash now, a reverse mortgage. It's about 45% of the appraised value. It was higher but in 2017 the government passed new laws requiring the banks to keep more reserves.

What I found interesting is you can use a reverse mortgage to purchase a new home. Let's say it's going to be your last home, you don't have any heirs you want to leave the home to, and it's your primary resident. If the home your buying is worth $300,000 with a reverse mortgage you put $140,000 down and don't pay another penny the rest of your life. You have that other $160,000 that you were going to put down now in your pocket to spend. You live in home, you essentially own the home, you pay the taxes and up keep, but you got it for less than half price. Then when you you die, just like a regular reverse mortgage the bank takes ownership and sells the home. If it sells for more than what you took out, your heirs get the difference.

Also I sold a home in Pensacola many years ago by owner, no realtor, no bank, no lawyer. The buyer and me went to a title company, I paid them $500 and he paid for title insurance and some doc stamps and stuff, and we were out the door in an hour. Easy thing to do in Florida. He could ordered an inspection, but since the home was only a year old, he didn't even have that done.

[pqrstar]

Scroll to the bottom of this page provided by Attorney's Real Estate Council of Florida
And The Survey Says: Who Pays for Title Insurance by County?

The Florida map of counties at the very bottom of the website shows that the SELLER of a pre-owned home pays the title insurance in Sumter County.

[Stu from NYC]

Originally Posted by John_W

I took the Reverse Mortgage class from Citizens Bank a couple of years ago, they usually give it every other month at Palmer Country Club. Most people are aware that if you're at least 62 and own your home, you can get cash now, a reverse mortgage. It's about 45% of the appraised value. It was higher but in 2017 the government passed new laws requiring the banks to keep more reserves.

What I found interesting is you can use a reverse mortgage to purchase a new home. Let's say it's going to be your last home, you don't have any heirs you want to leave the home to, and it's your primary resident. If the home your buying is worth $300,000 with a reverse mortgage you put $140,000 down and don't pay another penny the rest of your life. You have that other $160,000 that you were going to put down now in your pocket to spend. You live in home, you essentially own the home, you pay the taxes and up keep, but you got it for less than half price. Then when you you die, just like a regular reverse mortgage the bank takes ownership and sells the home. If it sells for more than what you took out, your heirs get the difference.

Life is funny. Sometimes your last house will turn out not be your last house and you want to move and do not have much equity at that point.

Reverse mortgage can get people to live above their means and than if they need additional funds for something do not have a source of it.

People should think long and hard before adding to debt in their olden years.

[John_W]

Originally Posted by Stuart Zaikov

Life is funny. Sometimes your last house will turn out not be your last house and you want to move and do not have much equity at that point.

Reverse mortgage can get people to live above their means and than if they need additional funds for something do not have a source of it.

People should think long and hard before adding to debt in their olden years.

I have a reverse mortgage and two of my neighbors have them as well. I didn't use it to purchase, I paid cash in 2011. In 2018 I decided why shouldn't I enjoy the equity I have in my home. I have no heirs, we're both way past 62, this is definitely our last home, so we did it. I keep up the home, had the landscaping redone by Terrascape last year and the outside repainted by Oscar. I'm going to have the fiberglass shower replaced in the M/bath this year and maybe granite in the kitchen. I have no worries now about money, or where I'm going to live.

[Toymeister]

Here is a seller's perspective:. I don't care if you pay cash. The home has a value of XXX and it doesn't matter to me if I get payment from a cash buyer or a bank. I generally consider a cash buyer more of a pain in the arse than a bank.

Now if I was in some sort of financial straights that might be different but it is statistically rare here.

[retiredguy123]

Originally Posted by John_W

I took the Reverse Mortgage class from Citizens Bank a couple of years ago, they usually give it every other month at Palmer Country Club. Most people are aware that if you're at least 62 and own your home, you can get cash now, a reverse mortgage. It's about 45% of the appraised value. It was higher but in 2017 the government passed new laws requiring the banks to keep more reserves.

What I found interesting is you can use a reverse mortgage to purchase a new home. Let's say it's going to be your last home, you don't have any heirs you want to leave the home to, and it's your primary resident. If the home your buying is worth $300,000 with a reverse mortgage you put $140,000 down and don't pay another penny the rest of your life. You have that other $160,000 that you were going to put down now in your pocket to spend. You live in home, you essentially own the home, you pay the taxes and up keep, but you got it for less than half price. Then when you you die, just like a regular reverse mortgage the bank takes ownership and sells the home. If it sells for more than what you took out, your heirs get the difference.

Also I sold a home in Pensacola many years ago by owner, no realtor, no bank, no lawyer. The buyer and me went to a title company, I paid them $500 and he paid for title insurance and some doc stamps and stuff, and we were out the door in an hour. Easy thing to do in Florida. He could ordered an inspection, but since the home was only a year old, he didn't even have that done.

The only problem with the scenario you presented is that many people don't die while living in their house. They need to move into assisted living or a nursing home before they die. In that case, the bank can force them to sell the house before they may want to sell it, and they will lose a lot of money in reverse mortgage fees and administrative costs. So, if you can afford it, you are better off getting a regular 30 year mortgage with a 20 percent down payment and using the extra cash ($140K minus $60K) to make the 30 year mortgage payments. That way, you have a lot more flexibility about when and how to sell the house.

[rustyp]

Originally Posted by Toymeister

Here is a seller's perspective:. I don't care if you pay cash. The home has a value of XXX and it doesn't matter to me if I get payment from a cash buyer or a bank. I generally consider a cash buyer more of a pain in the arse than a bank.

Now if I was in some sort of financial straights that might be different but it is statistically rare here.

Excellent ! - What were you going to pay me with other than money ? Biggest fallacy that has been ingrained on us - I have a cash buyer. Think about that. I don't have any idea that you do or do not have the money. If you are applying for a mortgage the bank would tell me if you are qualified.

[tvbound]

A timely and informative thread for us.

Thanks to the OP for starting it.

[kathyspear]

Originally Posted by rustyp

Excellent ! - What were you going to pay me with other than money ? Biggest fallacy that has been ingrained on us - I have a cash buyer. Think about that. I don't have any idea that you do or do not have the money. If you are applying for a mortgage the bank would tell me if you are qualified.

We have (in the past) paid cash for real estate purchases. We had to show proof of funds. They didn't just take our word for it that we had the money.

kathy

[trekker954]

Originally Posted by pqrstar

Scroll to the bottom of this page provided by Attorney's Real Estate Council of Florida
And The Survey Says: Who Pays for Title Insurance by County?

The Florida map of counties at the very bottom of the website shows that the SELLER of a pre-owned home pays the title insurance in Sumter County.

Thats cool to know.

[trekker954]

Originally Posted by retiredguy123

The only problem with the scenario you presented is that many people don't die while living in their house. They need to move into assisted living or a nursing home before they die. In that case, the bank can force them to sell the house before they may want to sell it, and they will lose a lot of money in reverse mortgage fees and administrative costs. So, if you can afford it, you are better off getting a regular 30 year mortgage with a 20 percent down payment and using the extra cash ($140K minus $60K) to make the 30 year mortgage payments. That way, you have a lot more flexibility about when and how to sell the house.

I still think if I had too much money lying around earning next to nothing why not just buy some real estate outright in a place I enjoy spending time. I plan to pay off that bond as well, hoping I find a home with the bond paid. Wouldn't that be great. I thought I'd be spending my retirement money cruising the world and I was up until March 7th. Just don't think I'll be cruising as much as I use to. I always felt TV was like a cruise ship on land.

[Stu from NYC]

Nice to have a thread where people disagree but do so in a nice and friendly manner.

[manaboutown]

Originally Posted by kathyspear

We have (in the past) paid cash for real estate purchases. We had to show proof of funds. They didn't just take our word for it that we had the money.

kathy

My former spouse just bought a home with cash a few months ago and had to show proof of funds. It was not a big deal. She sold her previous house to a cash buyer and her listing agent made sure she received proof of funds from them. As a seller I certainly would not want to take my house off the market for a period of time only to find the "cash buyer" could not come up with the money.