Tuesday, October 16, 2012

Reverse Mortgage



There was a New York Times piece yesterday about the elderly getting scammed by reverse mortgages.

http://www.nytimes.com/2012/10/15/business/reverse-mortgages-costing-some-seniors-their-homes.html?_r=1&pagewanted=all

There are definitely many things to beware of, but a reverse mortgage is a great way to "short" sell your house because it's a non-recourse loan in all states (i.e., they cannot come after you for more than the house, no matter how much the house goes down in value).  Back in '05 I would have bought a house and immediately done a reverse mortgage but you have to be 62 years old.   I wouldn't do it now though, because house prices my be bottoming out.

2 comments:

liberty reversemortgage said...

Reverse mortgage is a useful estate planning tool that banks and financial institutions ought to offer making available to seniors. It's a great security for them to ensure the delivery of their pensions in the amounts they thought forthcoming.
What is a reverse mortgage

mortgage loan modification california said...

A reverse mortgage, also called a conversion mortgage, allows homeowners to pledge the equity value of their home and derive an income out of it.

mortgage loan modification california