Theres a story on Yahoo that I have to address and thats all the poor, down-trodden children of parents that did a reverse mortgage. First of all, the parents knew what they were doing . . . it isnt really easy to get a reverse mortgage without either a ton of equity or a ton of cash to buy down the mortgage debt. Of course they can stay in their home until both have passed and in many cases, actually get income off the reverse mortgage at the time. A reverse mortgage might allow them to enjoy their years of retirement much more with travel and vacations they might have otherwise been unable to do while paying on their mortgage. Of course if children of those parents were really concerned, perhaps they could have chipped in some money every month to help them pay their existing mortgage, but quite honestly, that is rarely done. So the reverse mortgage is good for the parents, especially if the children arent that keen on living in their parents homes after they pass. If they do, there are a couple of things they can do? Number one, they can try to take out a mortgage on the old home, if both they and the home qualify. This is a problem of course with the decline in value of real estate. The other thing they could do is to write a check for the balance? That would also mean that in most cases, they would be buying a piece of real estate that isnt actually worth what they would need to pay. So, in most cases, the bank gets the home back and they will be lucky to be able to sell it at all, let alone for the market price it was at when they did the reverse mortgage. So, all of you out there that love the old home of your parents, if you want to help . . . write a check every month. If you let them fend for themselves, then you certainly shouldnt complain after theyre gone, that they did a reverse mortgage for their own benefit and not yours!
Posted on: Fri, 28 Mar 2014 15:10:22 +0000
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