OT Reverse Mortgages

[GRH]

Any of you guys ever used one or really checked to see which gives best
rate etc.???????

Thanks Graeme

[duckman]

reverse mort.

If you don't have any heirs to leave things to its probably not to bad of an idea
upon your death the property is sold and they get all there money back plus interest any thing left goes to your heirs.

[Carld]

I think there was a thread about this a while back. It's an interesting concept and I may have to use it some day. The thing is to be sure you have a valid will that will work with the reverse mortgage and to have all the ways you want it to work written into the agreement. It is really a legal contract as much as a loan or payout deal.

It would also be a good idea to have your own lawyer involved in the writing of the contract and have him be able to over see it before and after your death to be sure everything is carried out as written.

[winchman]

My wife and I did that for her mother. We got a security deed on her house along with a promissory note for the amount we felt we would be able to loan her. We gave her the money as she needed it to pay for someone to stay with her during the day, prepare meals, and clean the house.

The house was sold when she needed to go into a nursing home, and we got back our money plus accrued interest. The remainder went for nursing home expenses until Medicaid kicked in.

She got a way better deal than she would have dealing with a bank or with a company that specializes in reverse mortgages, despite what Pat Boone says.

We got a reasonable return on the money from the interest, and the satisfaction of knowing she had been able to stay at home (where she really wanted to be) for a lot longer than would have otherwise been possible.

[loose nut]

just be careful, if it sounds like a good idea, then there is someone trying to find a way to rip you off with it.

[jack3140]

i think the whole thing is a rip off you get to pay coumpond interest on that loan basically you are giving away your hose and you are responsible for the upkeep all the while you can be sure they will hold you to it beware too good to be true

[Frank Ford]

It can work. My partner's parents did the reverse mortgage to allow them to stay in the house for as long as they lived, and they won the game by living a solid 35 years after doing the deal.

Winchman - 25 years ago we did the same deal as yours with my ex in-laws with similar results - not bad for either party. All parties came out well.