Footballjoe Posted October 28, 2010 Share Posted October 28, 2010 (edited) There is an elderly man in my church (he's in his mid to late 80's) that is having a hard time making ends meet. He lives alone, is in good health both physically and mentally. He owns it outright and its worth about $225,000. He will not move from his home and wants to live out the remainder of his life there. Also, he is not thrilled about leaving his house and belonging to his children. I was thinking that perhaps under his circumstances a Reverse Mortgage may be of benefit. Can anyone share anything about them whether good or bad? Edited October 28, 2010 by Footballjoe Quote Link to comment Share on other sites More sharing options...
Missoula Griz Posted October 28, 2010 Share Posted October 28, 2010 (edited) At 82, a reverse mortgage should make a lot of sense. He has tons of equity and could draw monthly income from the equity. We have done them in the past. I am not an expert by any means, but I have seen the benefits of the loan. It really can help the elderly in tough times. Edited October 28, 2010 by Missoula Griz Quote Link to comment Share on other sites More sharing options...
Ursa Majoris Posted October 28, 2010 Share Posted October 28, 2010 (edited) At 82, a reverse mortgage should make a lot of sense. He has tons of equity and could draw monthly income from the equity. We have done them in the past. I am not an expert by any means, but I have seen the benefits of the loan. It really can help the elderly in tough times. I've read a bit about these and would agree that in principle they are a great idea. Why not slowly liquidate your house to keep yourself comfortable? That said, this is a pool with a ton of sharks in it. The first priority is find a reputable company to deal with. Edited October 28, 2010 by Ursa Majoris Quote Link to comment Share on other sites More sharing options...
polksalet Posted October 28, 2010 Share Posted October 28, 2010 Why doesn't he get a job? Quote Link to comment Share on other sites More sharing options...
Square Posted October 28, 2010 Share Posted October 28, 2010 (edited) Why doesn't he just take out a regular mortgage? That way if he passes away he'd just have the left over assets pay off most of the house and once it's sold to settle the estate there might be some to leave to his relatives. Edited October 28, 2010 by Square Quote Link to comment Share on other sites More sharing options...
Footballjoe Posted October 28, 2010 Author Share Posted October 28, 2010 Why doesn't he just take out a regular mortgage? That way if he passes away he'd just have the left over assets pay off most of the house and once it's sold to settle the estate there might be some to leave to his relatives. You would have to make monthly payments on a regular mortgage. Quote Link to comment Share on other sites More sharing options...
Big Country Posted October 29, 2010 Share Posted October 29, 2010 Couple links on pros and cons Caring.com Good article from bankrate.com Some cons I hear a lot are that the fees are very high, up to 10% of the value of the home, and the person getting the reverse mortgage is still responsible for property taxes, homeowners insurance and mortgage insurance and as the payments from the reverse mortgage are considered an asset by Medicaid, it could affect his ability to get/remain on Medicaid. Quote Link to comment Share on other sites More sharing options...
Square Posted October 29, 2010 Share Posted October 29, 2010 You would have to make monthly payments on a regular mortgage. So? You'd have the cash to pay your 30 year mortgage and the dude is already pretty old. I'm guessing this 82 year old isn't going to Vegas and going to spend it all on hookers and blow (seems unlikely unless he is related to SEC ). You'd basically be taking out a loan. I guess I just don't get the reverse mortgage and I've heard a lot of stories of people getting hit with BS fees (basically praying on elderly with hidden costs). Quote Link to comment Share on other sites More sharing options...
Yukon Cornelius Posted October 29, 2010 Share Posted October 29, 2010 . I guess I just don't get the reverse mortgage and I've heard a lot of stories of people getting hit with BS fees (basically praying on elderly with hidden costs). No way, business would never take advantage of people to make money. Quote Link to comment Share on other sites More sharing options...
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