Posted by PA_NOTARY on 9/24/07 10:20am
Msg #212768

HERE'S WHAT'S HAPPENING IN PA.....

http://www.poconorecord.com:80/apps/pbcs.dll/article?AID=/20070924/NEWS/709240302/-1/NEWSLETTER01

Reply by sue_pa on 9/24/07 10:35am
Msg #212771

this was also the lead story in our a.m. paper. BUT, I don't feel sorry for this lady one bit. She says she didn't know it was adjustable? Her broker failed to disclose it? Can't she read? She probably signed a Note, TIL and an Adjustable Rate Rider and often times (although not always) other disclosure forms. People need to use their brains when getting a loan and I realize for many people, especially the elderly and less worldly, it is confusing but it's still their own personal responsibility to understand a major transaction and if they don't, pay someone to figure it out for them - not the person who stands to make the fee for the product they are selling.

Reply by Linda_H/FL on 9/24/07 12:10pm
Msg #212794

$55K mortgage at 74? - she should look into a reverse - she sounds like a prime candidate for one.

Reply by sue_pa on 9/24/07 1:03pm
Msg #212797

just because someone's of the correct age doesn't mean they are 'prime' candidates for reverse mortgages. They are VERY expensive. Depending on the home owner's circumstances, a no or low cost HELOC can often be a great option. Take the funds out, use the conversion factor, invest the proceeds and make the monthly payments out of the income. Equity again begins to build up with each and every payment. I saw Don got jumped the other day for his opinion - reverse is good for some people but not all. Like we saw in the subprime market - almost every loan product has a targeted market and is tailored to different situations but many people took out loans for the wrong purposes. Reverse appears to be headed the same way.

Reply by goodgirl on 9/24/07 6:19pm
Msg #212858

Finally...Someone agrees with me. I realize some elderly people are in the position that this works best for them, but other options are available. Although I understand WHY THIS IS DONE (and DON'T need someone's explanation...duh...) it always bothered me that these elderly folks pay all these horrendous closing costs. The lender (buyer) is supposed to basically be buying the property from them. Why should these elderly folks be LOSING all this money in closing costs??? Seems to me the tables should be turned and the lender (buyer)
should be footin' the bill for all this monkey business. I cringe when I close a reverse mortgage and these poor elderly folks are taken for a ride.

Reply by Ernest__CT on 9/24/07 11:54pm
Msg #212883

A mind is a terrible thing to have closed. n/m