Join  |  Login  |   Cart    

Notary Rotary
Just PoliticsLeisure
Welcome to the Notary Talk General Discussion Forum. Before posting, please read the


Good estate planning tool...
Posted by Bobbi in CT of ? on 5/13/05 2:28pm Msg #37554
Not an attorney. Not giving legal advice or recommending this loan product.

In the hands of the right attorney, this can be an excellent estate planning tool. Not like the early 1990s version - no balloon (150 year term for age of youngest borrower) and not always treated as an annuity. For estate planning and tax purposes, the cash out is not treated as "income". Upside, no income requirements, $$ can be taken in multiple ways (including paying off existing mortgage plus line of credit for remaining funds) can be a good tool for quality of life and Medicaid planning (done correctly) plus if the house isn't worth the unpaid debt at termination then lender does not go after estate. Also, heirs have ability to keep house and refinance to pay off loan or sell - depending on value of home at death of surviving borrower, may be little or no equity left. Heirs may not get as Big a Buck as they want from dead parents.

There are multiple products. The high-value ones have no "cap". The products through HUD have a maximum loan cap based on state and county the home is in. One of the HUD products does have high up-front fees. Also, feds have a cap on total amount HUD will loan nationwide - cap just recently increased. Anyone applying for these must go through a 20-30 minute "education", which can include children, PoA, social service worker, and anyone else borrowers want with them during "education".

LONG time at the table. Only ones I have seen in CT have been handled through attorneys.
PrevNextReturn to General Discussion    Post a Public Reply to this MessageSend Author a Private Message


Messages in this Thread
 Reverse Mortgages - Carol_SoCal on 5/13/05 1:01pm
 Re: Reverse Mortgages -  SamIam_CA on 5/13/05 1:12pm
 Not a good choice for family - Melody on 5/13/05 1:20pm
 Re: Reverse Mortgages - Mike/NJ on 5/13/05 1:29pm
 Re: Reverse Mortgages - Sonja on 5/13/05 2:03pm
 Correct re Trustee/Estate. Not quite correct re Medicare. - Melody on 5/13/05 4:22pm
 Re: Correct re Trustee/Estate. Not quite correct re Medicare. - Sonja on 5/13/05 5:34pm
 Re: Correct re Trustee/Estate. Not quite correct re Medicare. -  BrendaTX on 5/13/05 6:28pm
 Re: Correct re Trustee/Estate. Not quite correct re Medicare. - Sonja on 5/13/05 7:00pm
 Re: Correct re Trustee/Estate. Not quite correct re Medicare. - BrendaTX on 5/13/05 7:11pm
 Re: Correct re Trustee/Estate. Not quite correct re Medicare. -  SamIam_CA on 5/13/05 7:21pm
 Thanks, Sam...I should have said: -  BrendaTX on 5/13/05 7:38pm
 Being blunt: -  BrendaTX on 5/13/05 7:54pm
 Re: Being blunt: I think you said it just right n/m -  SamIam_CA on 5/14/05 11:40am
 Re: Correct re Trustee/Estate. Not quite correct re Medicare. - Sonja on 5/13/05 8:00pm
 What started out as questions and exchanges of ... - Ernest_CT on 5/13/05 9:44pm
 Re: What started out as questions and exchanges of ... - Sonja on 5/14/05 11:40am
 Last.... - Sonja on 5/14/05 12:21pm
 Re: Last.... -  BrendaTX on 5/14/05 12:32pm
 Re: Last.... -  SamIam_CA on 5/14/05 12:36pm
 Would you kindly... - Sonja on 5/14/05 1:02pm
 Sam... -  BrendaTX on 5/14/05 1:47pm
 You make perfect sense to me - now go enjoy the weekend! n/m -  SamIam_CA on 5/14/05 2:13pm
 Re: You make perfect sense to me - now go enjoy the weekend! n/m -  BrendaTX on 5/14/05 2:48pm
 As the poster knows... -  BrendaTX on 5/14/05 12:27pm
 Think what you want n/m - Sonja on 5/14/05 1:03pm
 Re: Correct re Trustee/Estate. Not quite correct re Medicare. -  HisHughness on 5/14/05 5:43pm
 Good estate planning tool... - Bobbi in CT on 5/13/05 2:28pm
 Re: Good estate planning tool... - Carol_SoCal on 5/13/05 2:37pm
 Re: Good estate planning tool... - Kevin Ahern on 5/13/05 4:32pm
 No one recommends Reverse Mtg as investment tool ... - Bobbi in CT on 5/13/05 7:17pm
 Re: Reverse Mortgages - PeterL_CA on 5/13/05 7:51pm
 Re: Reverse Mortgages - ERNA_CA on 5/14/05 2:19pm



 
Find a Notary   Notary Supplies   Terms   Privacy Statement   Help/FAQ   About   Contact Us   Archive  
 
Notary Rotary™ is a trademark of Notary Rotary. Copyright © 2002-2022, Notary Rotary, Inc.  All rights reserved.
500 New York Ave, Des Moines, IA 50313.