...no well....no foundation...no reverse mortgage!

[dpg]

So how do you pay them back? Do you sign a note promising to pay when the property's sold? Is there a law or something about selling and paying the note back, like a timeframe or something? Can you take a reverse then leave the home to a child??

[HomeWood]

Originally Posted by dpg

So how do you pay them back? Do you sign a note promising to pay when the property's sold? Is there a law or something about selling and paying the note back, like a timeframe or something? Can you take a reverse then leave the home to a child??

I think the intent is to never pay it back, thus why it seems to be marketed to retired folk and the elderly. The banks gives you small loan payments (in reverse) instead of one large lump sum home equity loan. Then they own the house and could make a killing when they sell it after your death. If you want to leave it to a relative, they will have to pay off the mortgage or refiance. I'm a huge Dave Ramsey fan and he clearly explains why they are such a bad deal.

Banks didn't come up with this scheme to help YOU.

[ossipeeboater]

Originally Posted by HomeWood

I think the intent is to never pay it back, thus why it seems to be marketed to retired folk and the elderly. The banks gives you small loan payments (in reverse) instead of one large lump sum home equity loan. Then they own the house and could make a killing when they sell it after your death. If you want to leave it to a relative, they will have to pay off the mortgage or refiance. I'm a huge Dave Ramsey fan and he clearly explains why they are such a bad deal.

Banks didn't come up with this scheme to help YOU.

ramsey is far from the be all when it comes to this stuff. he's rather have you in no debt eating nothing but ramen noodles while your free and clear owned homes sitting there just so you cna say you have no mortgage.

Reverse can be a good thing, no payments made, house is sold after you dies with the payoff being the principal plus interest, you cna never owne more than it sells for and if it sells for 10x what you borrowed you cna get some proceeds from it.

Biggest opposer of a reverse mortgage is the kid who are mad they will get no inheritance yet don't want to pay for the parents expenses while they are alive.

My parents bought there retirement home with a reverse, they owe me nothing when they die IMO so having no first mortgage payment or home equity payment is just perfect for them. gives them another $1000/mo to spend having a good time.

[Kamper]

If you just need access to money, try a home equity account. The interest can be a pain though. Make sure you don't fall behind in the payments because they can still take your house.

...And that's all I think I know about that.

[fatlazyless]

....say-hey....probably best to fuhgettabout a reverse mortgage and, I should rent out the cottage during the high-rent, summer weeks and move myself into my old, unregistered pickup truck.....someone up the road has an accessory one-room cottage on their lot as well as a large, old laker, waterfront house and does something like this to make money for his prop taxes......maybe become bad-arrhhggg homeless and go live under a bridge during the high-rent summer weeks and live on Pabst Blue Ribbon and cheese-its on a rainy day under the Weirs boardwalk with the big lake view!

[Greene's Basin Girl]

Sounds like a plan!!!!