Posted on 10/15/2009 2:05:58 PM PDT by knarf
I think I am a little late to the party, but...
Could a family member set up a Reverse Mortgage as a way of avoiding any Taxes at Death of parent?
A reverse mortgage is another con-man with a hand in your pocket.
Watch out for
1. terribly high closing costs (often a rip off)
2. you can not get 100% of equity. Example: if you have a $100,000 house, paid off, you might get $60,000 reverse mortgage. If you still owe $40K, you’d get only $20K on a reverse mortgage over the amount owed on an existing mortgage.
3. When you die the lien (reverse mortgage) must be paid off by your heirs or it goes to the lender.
Dave never recommends taking out a reverse mortgage. The closing costs are a huge scam. He tells folks that they would be better off taking out a straight mortgage and making payments out of that loan.
He hates debt and that shows just how much he hates the reverse mortgage.
That is why he would love this thread.. Dave loves to educate people.
I have been listening to Dave for about 6 years now and he really likes to teach. He just has a great forum for that now.
So after he asked them what in the world are you thinking he would teach the stupidity of a reverse mortgage.
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