Happy Birthday Tom

[Blueone]

So, I didn't really look into these things until @Blueone had a mini-stroke about them. I don't know what company Tom Selleck rep'd but it seems that you still own the home just like a regular mortgage. You can sell and keep the difference between the selling price and mortgage balance. This is from AAG


a borrower can sell a home with a reverse mortgage at any time they choose, just like a traditional mortgage. When a borrower sells their home, they must repay the reverse mortgage loan balance and their lender will close their account. Borrowers then keep the remaining equity.

I don't get all the hubbub.

Two things…… there are better ways of getting equity out of your house

second Tom uses his fame to appeal to older people and dupe them……for that he is a scum bag

typically you get half your equity…. When I went trough the application years ago to figure this out with Phuck Toms company my house was worth $600k…. Paid off…. They were giving me $250k ……to pay back the loan if you sold was just under $400k… why would you do that?….. if you die they get the house….. I sold that house a few months ago for $900k….. so if I was stupid they would have bought the thing for $250k…… this was probably 6 years ago when I really hated Tom

 

[Jus Cruisin]

Of course, if you aren't making payments, the balance will increase.
If you sell and pocket the cash, you still have to live somewhere. Buying something else, all you're doing is moving and not getting any else. Or, you have buy some slum property to have a place to live and keep some cash.
So what if they only give you 50% or whatever your value is. It still gives the person cash and allow them to stay in the home they apparently love and are comfortable in.
I just don't get the hard on....

 

[highslice]

Of course, if you aren't making payments, the balance will increase.
If you sell and pocket the cash, you still have to live somewhere. Buying something else, all you're doing is moving and not getting any else. Or, you have buy some slum property to have a place to live and keep some cash.
So what if they only give you 50% or whatever your value is. It still gives the person cash and allow them to stay in the home they apparently love and are comfortable in.
I just don't get the hard on....

If it was a normal bank, I would agree with you. But most (I can't say all because I am sure there are some I have never heard of. But the companies I have looked at are predators and they prey on the elderly's fears.

My Mom is 87. She owned her home until last summer. She lived in a community of single family homes, but the HOA was set up like it was condos. All the maintenance from the drywall out was the HOAs responsibility, even the roof. As such about 60% of the people that lived there were older. One of these companies went door to door trying to sell reverse mortgages. They offered my Mom $190K for her house. Told her if she didn't take it she might die penny less. Fucker. I sold the house a month later for $405K.

The thing is I talked to US Bank about a HELOC for the house to get a couple things done. They were willing to lend up to 90% (total including her 1st mortgage) of the appraised value of the house. No questions about income or income verification. They were only concerned that the asset would support the amount of the loan if she defaulted. That would have been the much better option had I decided to go that route.