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  • From: EarthNSky <erthnsky AT bellsouth.net>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] reverse mortgages
  • Date: Tue, 11 Nov 2008 18:19:24 -0500

We don't have any kind of retirement other than ss and a small, and shrinking 401k. I knew we were too young, and normally wouldn't even consider it. However, should taxes increase to the point that neither kid could afford to inherit the place, I just thought it might be a solution to living in our old age.
I'll read the links you sent, thanks, Lisa.

Bev, who just heard another commercial for one.

Lisa K.V. Perry wrote:
On Tue, Nov 11, 2008 at 4:18 PM, EarthNSky <erthnsky AT bellsouth.net> wrote:

I know Lisa and others have mortgage experience. I keep seeing those
ads for a reverse mortgage. How exactly does that work and what is the
downside? Bank gets the property when you die, right?


You have to be minimum age 62. This was a niche market that I thought about
becoming an expert on had I stayed in the business, but I did not. Maybe
down the road I'll get back in it and only do reverse mortgages, who knows.

Found a couple sites to answer your questions, but if you're thinking for
you in particular, you and Ron are too young.

http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea13.shtm

*Who can get one?*


-

You must own your home, and generally all of the owners must be at least
62 years old.




-
If you have any debt against your home, you must either pay it off *
before* getting a reverse mortgage or - this is what most borrowers do
- use an immediate cash advance *from* the reverse mortgage to pay it
off. If you don't pay off the debt beforehand, or do not qualify for a
large
enough immediate cash advance to do so, you cannot get a reverse mortgage.




*When do you pay it back?*

- When the last surviving borrower dies, sells the home, or permanently
moves away. "Permanently" generally means you have not lived in your home
for 12 months in a row.


- You might also have to pay it back if you fail to pay your property
taxes, fail to keep up your homeowner's insurance, or let your home go to
waste. But if you do, the lender may be able to make extra cash advances to
cover these expenses.

Just remember, reverse mortgage borrowers are still homeowners and
therefore are still responsible for taxes, insurance, and upkeep.

http://www.reverse.org/faqs.htm




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