Reverse mortgages

[tonypeoni]

Ive had more than a few family members go this route. The combination of recently a having friend get a inheritance and then a week later getting a call from a relative (not my mother or father) asking for $2000 to help purchase a roof! Got me thinking about how crazy it is to let elderly people make decisions like this. This house is owned by a reverse mortgage company! Now we have to put a roof on it? Asap!! If you go into this persons house they have wall to wall junk from mail order TV BS. I have 4 family members that have done this in the past 10 years. One of which is kinda a scumbag. The 3 children paid all the utilities plus incidentals for years and only after death was it discovered nothing was left.. Say what you will about entitlement but the 3 kids probably forked out 100k over 20 years!! Old people have POOR judgement. Because they have poor judgment they get taken advantage of by these mortgage company's. The ones Ive seen still need assistance from the children even with a reverse mortgage.

[RANDY P]

yeah, you have to be careful- especially if you had a reverse and THEN the market dumped value.

Old folks are scared. They don't have jobs, they can't work and the bills sill come. That's why they do it.

rjp

[tonypeoni]

Originally Posted by RANDY P

yeah, you have to be careful- especially if you had a reverse and THEN the market dumped value.

Old folks are scared. They don't have jobs, they can't work and the bills sill come. That's why they do it.

rjp

I understand that but.. The kids should not have to pay their parents bills WHILE the parents piss the inheritance away. Thats what happened with my family member. Ran up 15k on QVC credit alone!

[Bill Douglas]

But... Another way to look at it is the old people may only reverse mortgage 20K or 30K a year out of the house and the house value increases by 50K a year.

When the oldies die and the place is cashed up at current value and "reverse mortgage" money plus interest on that money deducted it there may be still $500,000 left in it.

[Scooter]

I don't understand the problem. Many elderly people are house rich and cash poor. A reverse mortgage is a way for someone to pay bills or have extra spending money, while not having to worry about paying a mortgage every month. Would you be upset if the person had a regular mortgage and they needed a roof?

[tonypeoni]

Originally Posted by Scooter

I don't understand the problem. Many elderly people are house rich and cash poor. A reverse mortgage is a way for someone to pay bills or have extra spending money, while not having to worry about paying a mortgage every month. Would you be upset if the person had a regular mortgage and they needed a roof?

Well lets see here... #1 They are leaving me NOTHING #2 They left nothing to their kids. Now they want more money!! Im sorry but these are the same people that would tell you get lost when you asked them for $1000 help you buy your first house. The same people that would give your kids a card with a $1 bill for their graduation.. They went on vacations, lived life, drove Cadillac's ect. Now they want money from me?

[Scooter]

It sounds like you are upset with the people that aren't leaving you an inheritance (and asking you for money), not the concept of reverse mortgage. Am I missing something?

[aigel]

Not sure why you feel you have to fork over $2k for a non parent senior relative. Just say "no" and move on.

On the subject of reverse mortgage --- I can see doing a reverse mortgage. Look at this example:

When I retire, I could sell my CA home and move to AZ into a trailer. I would use the proceeds of the CA home sale to cover my living expenses in said trailer. Alternatively, I could stay in my CA home and take out a reverse mortgage. Use the money I get out of that for my living expenses. The result in the end may be pretty similar, about $100k left on a nice trailer or the remnants of my CA home after the reverse mortgage. I would plan on being a tough 90+ year old bad-ass and really would enjoy taking a reverse mortgage company for all they are worth, being a 95 percentile in terms of life expectancy.

I really think a reverse mortgage, picking a decent one, is a great tool if you can't make ends meet otherwise.

G

[SteamWolf]

you don't have a government pension system there??

[aigel]

Originally Posted by SteamWolf

you don't have a government pension system there??

Sure do - it is called social security. It actually pays reasonably well, if you can keep your money together. You also have to have worked and paid into the system to receive benefits.

G

[Rick Lee]

Who the hell thinks their parents owe them an inheritance?

[aigel]

Originally Posted by Rick Lee

Who the hell thinks their parents owe them an inheritance?

+1

I sure would like to leave something to my kids and give them a jump start (help with college expenses and the first home), but I don't expect anything from my folks.

G

[Dottore]

Old people and money are even more difficult than young people with money, because they will often leave someone else to clean up the mess.

My mother, bless her heart, will never know how much grief and money she has been costing me these past years. Better that way.

Do I sometimes get angry that an intelligent and strong woman apparently cares so little about the havoc she has caused and continues to cause? Yes, but its less and less.

[Chocaholic]

Originally Posted by tonypeoni

Well lets see here... #1 They are leaving me NOTHING #2 They left nothing to their kids. Now they want more money!! Im sorry but these are the same people that would tell you get lost when you asked them for $1000 help you buy your first house. The same people that would give your kids a card with a $1 bill for their graduation.. They went on vacations, lived life, drove Cadillac's ect. Now they want money from me?

No, this is not a reverse mortgage problem. It's an "expectation" problem...on both sides. A family issue, not a financial one.

My parents have a reverse mortgage that was taken out before the real estate bust in 08. As such, they get a liveable monthly check in addition to social security. Never were wealthy people...always pinched pennies. Because of the reverse mortgage, my sister and I provide little support. Without it, we'd be writing checks monthly.

The only thing we do is split the cost of 3 months in Florida during Michigan's worst weather (Jan, Feb, Mar). They're in their 80's. Will we receive an inheritance? No, of course not. Don't even think about it. Glad they're reasonably healthy and mostly self-sufficient. The best gift I could hope for.

A matter of expectations...

[KFC911]

Post deleted...

[Jferr006]

Y'all are missing the point a little. It is not about entitlement it's about a couple of people who managed their money poorly, AND weren't very generous people when they had money trying to get it from a relative. It's called karma. I'm sure if these people had been "nice" people that made poor decisions or were taken advantage of in their old age, helping them would be at least a consideration.

If my parents needed to go this route in order to make ends meet in their senior years and it meant I would not get an inheritance, that's fine with me. They made lots of sacrifice for me and I never assumed I was I entitled to any money and that wouldn't have any bearing on my willingness to help them if they needed it.

[KFC911]

Originally Posted by Jferr006

Y'all are missing the point a little. It is not about entitlement ....

I deleted my original post before I saw yours...I just respectfully disagree. I've "given" extended relatives more than I can count over the years, never expecting doodly-squat in return...it's just the way I am. Good luck Tony...I suspect you were just "venting" and apologize for my original post...be well.

[KFC911]

Originally Posted by Jferr006

...If my parents needed to go this route in order to make ends meet in their senior years and it meant I would not get an inheritance, that's fine with me. They made lots of sacrifice for me and I never assumed I was I entitled to any money and that wouldn't have any bearing on my willingness to help them if they needed it.

You added this as I was posting...spot on

[Jferr006]

All I was getting at originally is that it's easier to want to help people that have the same regard for others.
... And I think he was just venting also.

[LakeCleElum]

Reverse mortgages are not always the best way to go due to the high fees charged.

Also, make sure both names of the couple are on the loan papers. I just read where an elderly wife was kicked out of her home due to the fact only her husbands name was on the loan and he passed away........

I wish my mother would do a reverse as she doesn't have much money to live on. She won't do it as she wants to leave the house to us 5 kids.....I'd rather not get a dime if it meant she had a better standard of living now.....