Recent Topics
Maxlife v dex/merc
by HyundaiAbuser - 09/22/19 09:24 PM
15,119 Mile Supertech UOA
by Stumpy - 09/22/19 08:54 PM
Rust-Oleum Factor 4
by CatCam2 - 09/22/19 08:20 PM
She Really Loves Her Wolves
by Warstud - 09/22/19 08:06 PM
Local Walmart Magnatec Closeout- Maybe Others?
by SSerian - 09/22/19 07:32 PM
Anti theft measures for new truck
by Oldtom - 09/22/19 07:28 PM
What would you do?
by Rexinaus - 09/22/19 06:26 PM
What size wire for 5 HP motor?
by dlundblad - 09/22/19 06:12 PM
Studless V/S studded winter tires
by cecil56 - 09/22/19 06:10 PM
200K more to Go!
by Gebo - 09/22/19 06:07 PM
Toyota license plate bolts/screws
by edwardh1 - 09/22/19 05:38 PM
How Do You Clean Your Grill ?
by Warstud - 09/22/19 04:05 PM
Curious question?
by Bill_W - 09/22/19 03:06 PM
Haldex, Automatic on demand clutch fluid?
by sloinker - 09/22/19 03:02 PM
Winter tires for BMW X5
by iExcel - 09/22/19 02:42 PM
CONVENTIONAL FOR 2010 NISSAN MURANO
by nealberke - 09/22/19 01:44 PM
49er Steeler Tickets today!
by JeffKeryk - 09/22/19 01:20 PM
E15 usage?
by Dorian - 09/22/19 12:56 PM
Newest Members
dburch, Hueiyeh, Texguy, jm1, Dunkaroo
69364 Registered Users
Who's Online Now
96 registered members (72te27, 2strokeNorthstar, AandPDan, 10WSmuckers, ACC, 12 invisible), 1,969 guests, and 29 spiders.
Key: Admin, Global Mod, Mod
Forum Statistics
Forums67
Topics294,927
Posts5,069,403
Members69,364
Most Online3,532
Jul 30th, 2019
Donate to BITOG
Print Thread
Hop To
Page 1 of 2 1 2
Reverse Mortgage #4975862 01/11/19 10:10 AM
Joined: May 2018
Posts: 1,844
Zee09 Offline OP
OP Offline
Joined: May 2018
Posts: 1,844
Seen a whole bunch of adverts this morning
Just a question ( not about me or anybody I know and of course not really a sound thing but...…….)

Is there a law against more than one property put into a RM plan?
Like the guy who has several houses etc. in the same state or other states and even countries.
I realize you could sell said properties and put the money in high interest funds etc. But that's not the question.
For conversation only. Just wondering how tightly regulated these are.


"If I walked on water, they'd say I couldn't swim."
Re: Reverse Mortgage [Re: Zee09] #4975871 01/11/19 10:20 AM
Joined: Jul 2013
Posts: 2,747
N
NormanBuntz Offline
Offline
N
Joined: Jul 2013
Posts: 2,747
I believe the rules allow a RM only for a primary residence for an owner 65 or older.


Firesign Theater: "Heavy on the 30 weight, Mom."
2013 Honda Accord LX, 61K, 2nd owner
2007 Honda Ridgeline RTS, 92K, 1st owner
2007 Infiniti M35, 114K, 1st owner
Re: Reverse Mortgage [Re: NormanBuntz] #4975896 01/11/19 11:02 AM
Joined: Apr 2005
Posts: 714
K
knerml Offline
Offline
K
Joined: Apr 2005
Posts: 714
Originally Posted by NormanBuntz
I believe the rules allow a RM only for a primary residence for an owner 65 or older.

Agree. You need to be occupying the house. If you move out of the house for any reason without paying off the mortgage, say you go into a nursing home, they can foreclose.


2015 Hyundai Elantra Sport 2.0 GDI Mobil 1 5W30 & OEM/Mann W811/80 Filter
2018 Hyundai Santa Fe Sport AWD 2.0T Castrol Edge 5W40 & OEM/Mann W811/80 Filter
Re: Reverse Mortgage [Re: Zee09] #4975899 01/11/19 11:05 AM
Joined: Apr 2010
Posts: 3,926
B
BMWTurboDzl Offline
Offline
B
Joined: Apr 2010
Posts: 3,926
One of the problems with what you're talking about is that states/countries have different laws regarding foreclosures. For example there are states which have judicial or non-judicial foreclosures. That causes problems for a lender if one property is located in a state with judicial foreclosure and the other property is not.

A RM is only as sound as the appraisal on which it is based. For example FHA recently reported that they have a group of RM's with inflated appraised values and IIRC these RM's were limited to a handful of appraisers.

RM's are a good idea for some people (ex, over 70 and own an expensive home free and clear).

Last edited by BMWTurboDzl; 01/11/19 11:05 AM.

“It took untold generations to get you where you are. A little gratitude might be in order. If you’re going to insist on bending the world to your way, you better have your reasons.”

435i
Re: Reverse Mortgage [Re: knerml] #4975903 01/11/19 11:08 AM
Joined: Apr 2010
Posts: 3,926
B
BMWTurboDzl Offline
Offline
B
Joined: Apr 2010
Posts: 3,926
Originally Posted by knerml
Originally Posted by NormanBuntz
I believe the rules allow a RM only for a primary residence for an owner 65 or older.

Agree. You need to be occupying the house. If you move out of the house for any reason without paying off the mortgage, say you go into a nursing home, they can foreclose.


I don't know why that should matter. I can't see lenders doing an occupancy check.


“It took untold generations to get you where you are. A little gratitude might be in order. If you’re going to insist on bending the world to your way, you better have your reasons.”

435i
Re: Reverse Mortgage [Re: BMWTurboDzl] #4975911 01/11/19 11:19 AM
Joined: Apr 2012
Posts: 7,210
W
Wolf359 Offline
Offline
W
Joined: Apr 2012
Posts: 7,210
Originally Posted by BMWTurboDzl
Originally Posted by knerml
Originally Posted by NormanBuntz
I believe the rules allow a RM only for a primary residence for an owner 65 or older.

Agree. You need to be occupying the house. If you move out of the house for any reason without paying off the mortgage, say you go into a nursing home, they can foreclose.


I don't know why that should matter. I can't see lenders doing an occupancy check.


They don't, but when you move out, things tend to change like driver's license, type of insurance, where things get mailed etc. They can figure it out without doing a drive by.

It only works in a very limited case. The gamble is that you're going to live longer than they think so you'll get more out of it. They're betting you're going to die sooner or move out.

Re: Reverse Mortgage [Re: Zee09] #4975917 01/11/19 11:24 AM
Joined: Jan 2017
Posts: 3,163
M
maxdustington Offline
Offline
M
Joined: Jan 2017
Posts: 3,163
It's a scam to foreclose. That's why they target people at the end of their life who possibly have reduced mental capabilities or are one injury away from assisted living. Fixed income desperation is the key motivator.


03 Jetta AWP/09A 210k kms
Edge 0W40 + Mann 719/30
Re: Reverse Mortgage [Re: BMWTurboDzl] #4975942 01/11/19 11:46 AM
Joined: Nov 2012
Posts: 794
P
Pelican Offline
Offline
P
Joined: Nov 2012
Posts: 794
Originally Posted by BMWTurboDzl
One of the problems with what you're talking about is that states/countries have different laws regarding foreclosures. For example there are states which have judicial or non-judicial foreclosures. That causes problems for a lender if one property is located in a state with judicial foreclosure and the other property is not.

A RM is only as sound as the appraisal on which it is based. For example FHA recently reported that they have a group of RM's with inflated appraised values and IIRC these RM's were limited to a handful of appraisers.

RM's are a good idea for some people (ex, over 70 and own an expensive home free and clear).


RM are not a good financial investment for the owner, period! It's very good for the lending party though. One must have a very good reason for a RM vs an outright sale, this is mainly an affective reason and mostly related to people in the 80s without heirs and who do not need assistance.

Re: Reverse Mortgage [Re: Zee09] #4975953 01/11/19 11:54 AM
Joined: Jan 2013
Posts: 3,305
W
WyrTwister Offline
Offline
W
Joined: Jan 2013
Posts: 3,305
So , if you move out & go into assisted living or a nursing home , you forfit the house ?


Wyr
God bless
Re: Reverse Mortgage [Re: Pelican] #4975954 01/11/19 11:56 AM
Joined: May 2018
Posts: 1,844
Zee09 Offline OP
OP Offline
Joined: May 2018
Posts: 1,844
I agree. It goes against my moral fiber.
I'm not in that age range but I most likely would be a good candidate.
I really have no heirs, a few I could have already stuck me with mortgages they never paid and I would
have a large paid for house in a good area to live in and use the money as living $$$
In the end a big old house can't do nothing for a dead man and the losers around me would just you know smile

I personally don't like the concept and who it targets though.


"If I walked on water, they'd say I couldn't swim."
Re: Reverse Mortgage [Re: WyrTwister] #4975957 01/11/19 11:58 AM
Joined: May 2018
Posts: 1,844
Zee09 Offline OP
OP Offline
Joined: May 2018
Posts: 1,844
Originally Posted by WyrTwister
So , if you move out & go into assisted living or a nursing home , you forfit the house ?


That would be a long stretch. You could put it on the market etc.
in the end the nursing home would get it anyway.


"If I walked on water, they'd say I couldn't swim."
Re: Reverse Mortgage [Re: Zee09] #4976006 01/11/19 12:35 PM
Joined: Oct 2007
Posts: 420
D
DB_Cooper Offline
Offline
D
Joined: Oct 2007
Posts: 420
Just a note concerning my Mother's condo and her RM when she passed away. I was the executor for the estate and when she passed the RM lender is not "foreclosing" as it were. It is a binding contract lien recorded with the deed. What if fact happens is there is a sort of annuity that is being paid on the presumptive value of the property. I say a sort of annuity at if the RM recipient lives to be 150 years old..the RM may pay out that long. However the actuaries at the RM companies are very good. They know, more or less, what the life expectancy is of the RM recipient vs. the value of the property. The RM loans are also "guaranteed" by Uncle Sam (the taxpayers) too. The banks/lenders have no real risk as long as the original appraisal is sound. The government had to guarantee these loans to create the RM marketplace for seniors to begin with. This sound familiar? It should.

There is a "trigger" when the recipient dies the payments end and the "estate' can surrender the property to the RM lender or buy the property from the RM company for the payments made plus interest and fees.

What was shocking to me was the surprise fees, interest + monthly fee, commissions and expenses that were loaded into the RM note..literately many thousands of dollars that I could not get the RM lender (Bank of America) to explain. No amount of phone calls or letters generated any kind of reply. The bank costs ballooned the buyout too high to justify the estate buying the note back. Add in the overall opinion of the family was to let the condo go as it may be too hard for one of us to live there.

So BoA sells the condo via a local real estate agent. After listing the condo for an unreasonably high amount. And the estate only has so much time to liquidate assets..the property sold to the highest offer for about two thirds of that original RM buy out amount from BoA. So Uncle Sam must have paid out the difference!

My advise is be VERY CAREFUL with a RM. Some cases may be justified but, as we know, banks love their fees, particularly hidden fees. Add in the "no risk" Federal guarantee feature of the RM now you know why you see those advertisements on TV all on the time. Just be careful.






Last edited by DB_Cooper; 01/11/19 12:37 PM.
Re: Reverse Mortgage [Re: Wolf359] #4976021 01/11/19 12:42 PM
Joined: Apr 2010
Posts: 3,926
B
BMWTurboDzl Offline
Offline
B
Joined: Apr 2010
Posts: 3,926
Originally Posted by Wolf359
Originally Posted by BMWTurboDzl
Originally Posted by knerml
Originally Posted by NormanBuntz
I believe the rules allow a RM only for a primary residence for an owner 65 or older.

Agree. You need to be occupying the house. If you move out of the house for any reason without paying off the mortgage, say you go into a nursing home, they can foreclose.


I don't know why that should matter. I can't see lenders doing an occupancy check.


They don't, but when you move out, things tend to change like driver's license, type of insurance, where things get mailed etc. They can figure it out without doing a drive by.

It only works in a very limited case. The gamble is that you're going to live longer than they think so you'll get more out of it. They're betting you're going to die sooner or move out.


Having 20 yrs in the industry I know for a fact that borrowers are NOT held to occupancy status on a mortgage loan. They're just not because lenders know that the living situation of an individual can/does change and it's generally very difficult as well as very expensive to prove intent in a court room.

Last edited by BMWTurboDzl; 01/11/19 12:42 PM.

“It took untold generations to get you where you are. A little gratitude might be in order. If you’re going to insist on bending the world to your way, you better have your reasons.”

435i
Re: Reverse Mortgage [Re: Pelican] #4976028 01/11/19 12:47 PM
Joined: Apr 2010
Posts: 3,926
B
BMWTurboDzl Offline
Offline
B
Joined: Apr 2010
Posts: 3,926
Originally Posted by Pelican
Originally Posted by BMWTurboDzl
One of the problems with what you're talking about is that states/countries have different laws regarding foreclosures. For example there are states which have judicial or non-judicial foreclosures. That causes problems for a lender if one property is located in a state with judicial foreclosure and the other property is not.

A RM is only as sound as the appraisal on which it is based. For example FHA recently reported that they have a group of RM's with inflated appraised values and IIRC these RM's were limited to a handful of appraisers.

RM's are a good idea for some people (ex, over 70 and own an expensive home free and clear).


RM are not a good financial investment for the owner, period! It's very good for the lending party though. One must have a very good reason for a RM vs an outright sale, this is mainly an affective reason and mostly related to people in the 80s without heirs and who do not need assistance.


By definition a RM is not an investment so there's no reason to view them through that lens. . Screw the heirs it's not their asset to begin with.


“It took untold generations to get you where you are. A little gratitude might be in order. If you’re going to insist on bending the world to your way, you better have your reasons.”

435i
Re: Reverse Mortgage [Re: BMWTurboDzl] #4976045 01/11/19 01:01 PM
Joined: Apr 2012
Posts: 7,210
W
Wolf359 Offline
Offline
W
Joined: Apr 2012
Posts: 7,210
Originally Posted by BMWTurboDzl
Having 20 yrs in the industry I know for a fact that borrowers are NOT held to occupancy status on a mortgage loan. They're just not because lenders know that the living situation of an individual can/does change and it's generally very difficult as well as very expensive to prove intent in a court room.



Are you talking about regular mortgages or reverse mortgages? I believe on a reverse mortgage, the owner is supposed to occupy the home. On a regular mortgage, the owner is supposed it live in the home for a year, but that is rarely enforced. There are very few people who take out reverse mortgages and of the ones I've heard of, you had to live in the house. Not sure how tough they are about enforcing that.

Page 1 of 2 1 2
Previous Thread
Index
Next Thread

BOB IS THE OIL GUY® Powered by UBB.threads™