Hello all you Penny Hoarders
I hope this finds the New Year off to a good start. So, a general question for all of you; Does anyone in this group have experience with reverse mortgages? What do you know about them? What is your experience? I’m seeking general information right now. Thank you in advance for your discussion contribution.
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I don’t really know how they work but my sister had one and when she passed away, within 2-3 weeks the mortgage company was badgering my niece to pay what was owed to them. She got a lawyer and they left her alone for a while but she had a deadline for selling the house and paying the money. It was definitely a struggle for her because she lived in a different state and had to travel back and forth to take care of things.
Someone I was talking to recently said they are good if the person has no heirs so the bank would just take the property and sell it.
I don’t know if this was helpful but I wish you luck with whatever you come up with.
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I was curious about these because it just sounded fishy.
If you own a home and it is paid off or has equity and if your single, with no children or relatives living then I would say do it, why not. Enjoy life while you can.
****** BUT *****
If you have children or relatives that you want to leave your home to them when you pass, or for your family to liquidate and divide, DO NOT DO IT!
FACT: 90% OF ALL REVERSE MORTGAGES ARE FORCLOSED ON BY THE LENDER!
90%
The other 10% it falls on the family or living relatives to pay it off when you pass.
If you have no family and are completely alone or don’t want to leave anything to your family then sure, get one, live, enjoy life.
But if you want your home and property to stay in your family and go to your loved ones.
Stay away, in my opinion these are scams to steal homes and property for penny’s on the dollar.
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Good point, @rick.campbell! I don’t see any reverse mortgages in my future.
Here’s a Penny Hoarder article with info on reverse mortgages for those interested:
Glad you posted more information.
I was curious and I looked it up a few years ago.
90% of all reverse mortgages get FORCLOSED ON!
It’s a trick in my opinion, people hurting for money use their home to live znd then when they pass they leave that DEBT to their children who probably can not afford to pay it off.
Then they lose the house, after court fees, attorney fees and the original debt, everyone gets money EXCEPT the family.
I get pissed everytime I see TOM SELLECK in those commercials knowing he is flat out lying to people.
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Thanks for highlighting the article. The tv commercials make it seem like a win-win situation. I like to see pros and cons.
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