Posted on 08/25/2010 12:55:22 PM PDT by luckybogey
I work with a company that is occasionally involved in selling of inforce, often older, life insurance policies. We recently had a very heartbreaking situation wherein a policy with a $220,000 death benefit was sold for $20,000 due to the owners of the policy were extremely hard up for cash. The day after the deal was done and the required waiting period was over, the person died. So they had gotten $20,000 instead of $220,000 from the policy. True, he could have lived for several more years... but it is not always a good deal, and there might be situations in which it is best to try to sell it to a relative or associate who has some goodwill for the family instead of done as totally a business deal.
Fred wasn’t McCain’s stalking horse, the I’ll kill any candidate but mine crowd was. Specifically, Duncan Hunter and Huckabe fans. Let me guess, you were a Duncan Hunter supporter weren’t you?
Exactly! And you can't "lose" what you didn't GET.
OMG, I hate that Lee Majors spot. You know he really needed the money which makes me sad, but every time it comes on I can’t get to the remote fast enough. He is soooo gorgeous in Big Valley reruns!
when the inflation hits 4oo or 500 percent reverse mortgage it and live off the proceeds
I know you well enough to know that you see the fallacy in that.
I agree with your statements regarding Reverse Mortgages (RM) in your post #30.
Life is one big gamble, isn't it?
I do that a lot, but there are taxes and upkeep. Vacant properties are one kind of liability, and putting tenants in them is even worse. Fortunately there are other options, but that's beyond the scope of this thread.
I just wonder whether most of the people making negative comments even understand the product. It’s not bad or good, it’s a product. A great product for some people. It’s not for everybody but I’m sure glad it’s there for those who need it. This can be the difference from living out your remaining years in a trash heap of a nursing home or going with dignity in your own home. Risks are mitigated with lifetime guarantees so I’m confused re the negativity.
I considered a reverse mortgage in 2007 when my house was worth 50% more
I know of several who got a reverse mortgage in 2006 when prices were high. One in particular is interesting that she got $200,000 on a free and clear older home and then died, leaving her son an inheritance of cash. He chose not to try to sell because of the market and let the bank have it. The bank took the house and it recently sold for $130,000. It turned out to be a good deal for the son who otherwise would have been stuck buying out the mortgage on a worthless piece of property.
While most of the Reverse Mortgage programs require both spouses to be 65+ Texas law actually requires only one spouse be 62+ for the lien to be valid. So if you could find a dumb enough lender one spouse could be 90 the other 18. The 18 year old would not have to repay the mortgage ever unless they sold or moved out.
I am not sure how they work. Lets say I own my home outright and its worth 100 grand in todays market.
Thanks in advance
I would not vote for Fred for dog catcher.
It is a loan which features a non-recourse feature which means that the lender can only look to the property for repayment. My fingers would get tired explaining every facet....but it’s a financial instrument that is a wonderful tool for many people. There are numerous sites that explains in detail Reverse Mortgages....
Your entire post is false...nothing you stated is fact. Do your homework before you post false information.
Fred’s done gone Knox Pooley on us.
“I know that my Grandmother got one many years ago when they were first offered and it has saved her home and her life. Of course I’m sure the bank didn’t expect her to live to be 93.”
They have something similar to RMs in France. About 15 years ago, I remember reading a newsarticle about a 40-year-old businessman who purchased a house from a childless, 76-year-old widow. 30-odd years later, he’s dead and the widow was alive and well. I think she didn’t die until she was well over 100.
It’s a loan, as long as you define a loan which you don’t really have to repay as a loan. (if you don’t go along with that definition all of the sub-prime mortgage originators on this thread will, apparently, go nuts)
Firstly, the minimum age across America is 62, not just in Texas, Secondly all persons on the title need to be 62 and if a spouse is less than the minimum age then he/she has to come off the title and then in the event of the death of the RM recipient...she stand s in line with all the rest of the heirs...
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