Reverse Mortgage Leads

Health, I was asking, not stating. I don't know anything about Reverse Mortgages. But I figured someone's got to cough up the owed money. Vendors wouldn't offer these if they weren't going to get paid back some how. Well...ok.....that's a silly statement as the last mortgage fiasco points out they really weren't thinking things through.

InsurPro, you could go to the various mortgage brokers in your area and ask if they sell lists of Reverse Mortgages. Or, get in real well with some the brokers selling them and work out a referral system that you both benefit from.

OK, so, in the event the borrower dies, the estate has to pay back the loan. If the home has gone down in value and will not cover the loan and grandma doesn't have enough life insurance, what happens? Does that mean grandma's airlooms and everything else get auctioned off until the estate has nothing left, then the loan is satisfied? The descendants are off the hook unless they want the property?
 
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There are many levels of retirement planning, and this seems like a last ditch strategy.
I know of someone in the office who's mother got one. She also has a chronic illness, and won't last past two years.

What uses can the money be used for? Anything?

What are the potential pitfalls of the reverse mortgage besides getting an extra bill to the estate?
Thank you,
 
Health, I was asking, not stating. I don't know anything about Reverse Mortgages. But I figured someone's got to cough up the owed money. Vendors wouldn't offer these if they weren't going to get paid back some how. Well...ok.....that's a silly statement as the last mortgage fiasco points out they really weren't thinking things through.

InsurPro, you could go to the various mortgage brokers in your area and ask if they sell lists of Reverse Mortgages. Or, get in real well with some the brokers selling them and work out a referral system that you both benefit from.

The smart lenders price it in on the front end. They can read a mortality table too, they assume everyone is in great health and is going to live forever.
 
I don't know the details of my in-laws reverse mortgage. I know they still had a mortgage at the time, were in their early 70's on fixed incomes and ever increasing expenses.

Now, they have no more payment and a line of credit. They obviously ran it past their 4 kids since the real downside is the kids don't inherit the house. None of the kids cared.

I know my father-in-law pretty well and his mood is 180 degrees to the positive and finally stops worrying about money.
 
I don't know the details of my in-laws reverse mortgage. I know they still had a mortgage at the time, were in their early 70's on fixed incomes and ever increasing expenses.

Now, they have no more payment and a line of credit. They obviously ran it past their 4 kids since the real downside is the kids don't inherit the house. None of the kids cared.

I know my father-in-law pretty well and his mood is 180 degrees to the positive and finally stops worrying about money.

Just speculating, but its probably a non-recourse one. They get to stay in the house as long as they live, and the bank gets it at their death. If the kids want the house, they have to pay off the full amount of the loan. Even if the loan exceeds the value of the home.

Maybe it is a bad deal, maybe not. But it sounds like your father-in-law is happier and has a better quality of life, so who cares.
 
I agree. Really...who gives a rat's a** about what happens after they pass away if they actually get to enjoy the final years of their life.

And yes - that much I know, that they get to stay in the house until they both pass away. Thankfully their kids care more about their parents having an enjoyable retirement they selling the house after they die so they can line their pockets.

On a side note, 2 of the 4 kids are total garbage trailer trash. Leeches. I'm sure they're not happy with this deal but they need to concentrate more on making money and less on how much they get when others die.

My father - 80 this year - is buying a new car. Why? He wanted a really nice car (has a LOT of money saved) but didn't want to spend it due to the inheritance. I said "Great, don't buy the car. Die, I'll get the money and I'll go off and grab a 7 series." He got the point and is buying it in two weeks.
 
Wow! I didn't mean to come off as a greedy person. I feel the same way. My dad's money is his, and I think his granddaughters now that he has one and seems to shower her with gifts.
However, there are airlooms I would like to keep in the family and would feel shafted if they got sold off to repay a reverse loan. I guess that's easily fixed by handing them down before his demise. The reverse mortgage doesn't sound like such a bad thing. I always had the misunderstanding that someone would have to even up the tab. Thanks for the info.
 
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:)
 
These reverse mortgages sound like a bad deal. Sure, the senior has some extra money to survive...but when the person passes away. The company takes the house? The beneficiaries get a bill? And what happens if that home is no longer worth what the reverse mortgage loaned? Too many what if's. Then again, maybe I just don't know enough about them....still sound sneaky.
Reverse mortgages are non-recourse loans. The heirs do not owe anything if the loan is greater than the value of t he home. Plus, they have up to 12 months after the seniors pass on/ or move out to dispose of the loan (not the house). It is not a given that their will be no equity left. There is an actuarial factor to the ltv. So the older they are the larger the ltv and vice/versa.
 
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