Is there a better solution for the cash strapped elderly than the reverse mortgage? What are big pitfalls?
Reverse mortgage seems an easy out, but does it cost too much in the way of fees and is the variable interest a good risk in this economy? Is there a better solution I am not considering?
If you have a lot of money in you house i would suggest you sale downside you house hold and move into a small house or apt!!! I just like to control my own future!!!
cons of senior lending network ..is there a cheaper solution to reverse mortgage?
The cost of a Reverse Mortgage is weighted on the front end. Remember, a sizeable amount of money, or line of credit is put up by a lender, for the borrower to use with no payment as long as the borrower lives in the home.
If your goal is to live in your home for as long as possible, the initial cost is justifiable, but if you need money for a short term goal and plan to sell or move in a year or tow – this loan was not designed for you.
Generally the fees on the front end are required to be financed fees – meaning they are not out of pocket. The only caveat is if you do not have enough equity in yor home to do the loan with out bringing money to the table. This occurs when you owe more than the Reverse Mortgage can give you. Some will put money in at close to relieve themselves of a house payment for the rest of their lives.
The bottom line is – get all the information you can, then decide if it is right for you. Www.reversemortgagefinance.com
What are the negative consequences of reverse mortgage on my house?
It sounds like a good solution to our problem of not enough money to enjoy retirement. The salesman assures us we can never have to pay more than the house is worth.
The balance of the Reverse Mortgage can never exceed the value of the home. That is the definition of a “no recourse loan”. Reverse Mortgages fall into this category. Keep in mind that the sale of a home is not a free transaction so a cost could be incurred to complete the transaction.
The purpose of a Reverse Mortgage is to help the Seniors who own and live in the home by allowing them to use their equity, without having to sell the home.
Best of luck – ask a lot of questions of your salesperson, ask to talk with his prior clients, look at the Reverse Mortgage information at www.hud.gov
You are welcome to contact me as well through the answers link on my profle.
Is Filing For Bankruptcy In Retirement A Good Thing?
The number of people filing for bankruptcy protection in retirement has soared in recent years — even before the recession.
In fact, people 65 and older are the fastest-growing segment of the population seeking bankruptcy protection, according to a recent study from the University of Michigan Law School.
The problem is simple math, said Johanna Sweaney Salt, a CPA with Kaufman, Schmid, Gray & Salt in Claremont, Calif. Their medical expenses, taxes and other costs keep going up, while their income is going down. Social Security hasn’t had a cost-of-living adjustment in a long time and pensions and retirement accounts took a huge hit during the recession. Reverse mortgages and other alternatives presented to them as “solutions” often just dig them further in the hole.
“Most people think ‘Oh, I have Medicare — I’m covered,’” said Jean Setzfand, director of financial security at the AARP. “But in fact, there are quite a lot of out-of-pocket expenses — and those continue to rise.” The biggest one, she said, is long-term care costs. Plus, a lot more people are going into retirement carrying a mortgage. So it is not so good as we think
Filing for bankruptcy would not include long term care since you have to pay monthly for assisted living or nursing care. You are correct that those are out of pocket costs unless you are on Medicaid.
What is the reason you are filing for bankruptcy? If it is credit cards and you are not planning to buy anything, I would agree, if your debts are substantial enough like $10,000, to make it worth the loss of credit. Since you wont be able to get credit afterward, you should think carefully. What credit you can get will be at exhorbitant costs. If you dont have a job you wont be able to do some things like rent a car, rent an apartment, reserve a hotel room without credit cards.
Medical out of pocket for those who dont have Medigap can be substantial, it is 20% or more of the medical bills.
Is this the solution for seniors who are lonely, broke and unable to pay their taxes? Have them work to pay?
AP – Davison, 76, raised her family there and after 43 years, she really doesn want to leave.
She suffers from arthritis and sciatica and needs a walker to get around on her bad days.
She pays about $12,000 a year in property taxes perhaps $2,000 to the town and has already taken out a reverse mortgage to pay her bills.
The town says they will help to find her a job, work part-time, for $7 an hour, to help pay off some of the property taxes.
It’s a new program for all Senior Citizens who are in property debt.
I think it was Cromwell from England who said tongue in cheek, when people complained about too many Irish children. He said eat them.
Here, let’s just euthanize them and give their assets to the government. Hitler got away with it. He picked on the Jews, confiscated their assets, then eliminated them.
We just don’t seem to care about people. A society is judged by how they treat their weakest and most vulnerable citizens.
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