Posted by Slarty_FL on 2/21/05 5:09pm
Msg #21700

Slightly OT

This isn't strictly a Notary question, but there seems to be enough accumulated industry experience here to get some decent feedback. My folks are considering a reverse mortgage on their home in CA. I was just wondering if anyone here had an informed opinion as to reverse mortgages and their pros and cons. Thanks.

Reply by BrendaTX on 2/21/05 5:14pm
Msg #21701

McSlarty:

I think they are great if the folks will live better as a result of the same. However, the closing costs are usually rather high. My experience has been they are usually right at 10% of the loan.

Hud.gov has lots of info and more links to learn a lot about the different types.

Reply by Ted_MI on 2/21/05 7:46pm
Msg #21717

heh Brenda,

Does that mean more money, a higher payment, to the notaries who handle such signings??

Reply by BrendaTX on 2/21/05 8:11pm
Msg #21721

Dream on, Ted. It means you better get yourself in there and out before Wheel of Fortune comes on if you know what's good for you.

Reply by Ted_MI on 2/21/05 9:48pm
Msg #21736

Brenda,

Well I suppose come to think of it the query was a little bit tongue in cheek.

Reply by Happy_in_Fl on 2/22/05 6:04am
Msg #21762

Case in Fact/Reverse Mtg.

My sister and hubby- with help from his very aged mom- purchased a house in Lady Lakes Fl. moving down from Seattle when retiring at age 62. (hubbies mom came along shortly there after, as they wanted to take care of her). Paid cash for house. Two years later decided there funds were inadequate to get by on.

They heard of reverse mortgage- went for it.

Interest was higher- but hubby decided they needed $600 more a month , to survive the way he figured they needed .

Within ,I would say 5 years or so, they were looking for more money- and refinaced because there house was now worth more- and they got it with higher interest, and soon they were wanting to sell, because they couldn't get more- and reached max. they could get-. So aged mom has to go to nursing home, as they were having medical problems- mom is in nursing home, wondering why her boy wasn't taking care of her at home- and after 4 years there at 95 passes on.

Sister and hubby are now 76- no home of their own- I purchased a manufactured home for them to live in- and their health and chemo. etc. etc. keeps them in below poverty level as for income.

The story here is not even half told- what occured with them- may not be what happens with your folks- but sister and hubby I guess figured they would not live long enough to see the money run out on the reverse mortgage.. It did.

Yes there are many things that could have been different-- Like taking a bare minimum out each month- eg: maybe $100 a month- it would have lasted a lot longer- but remember it does run out- and you could out live the plan- then you either pay- or move- or?????

Reply by Slarty_FL on 2/22/05 11:10am
Msg #21790

Re: Case in Fact/Reverse Mtg.

Thank you for sharing your story. I'm sorry things didn't work out well for your sister & family. My folks are looking more toward NOT having a mortgage payment than they are getting the monthly income. They can survive just fine on what they make if they didn't have to make the mortgage payment, so any equity they draw out would be surplus income for them. But I WILL pass your warning along, thanks.

Reply by Happy_in_Fl on 2/22/05 4:18pm
Msg #21844

Re: Your more than welcome! n/m