Need To Know About Reverse Nortgage For My Parents

Discussion in Mortgage & House Payments started by Brad766 • Jan 24, 2017.

  1. Brad766

    Brad766New Member

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    Hi,

    I am asking this question here for my parents. They are old and living alone. They don't have income and my father is weak to go for any jobs. I have been providing them with something I have till now. I am thinking about some other solution to make their life happy and safe.

    I heard about the reverse mortgage for seniors can help met out the financial challenges. When I searched online, I came across a number of blogs. This page says that the money one borrows is tax-free and has a lot of benefits.

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    I read that it can provide enough to live comfortably.

    I am not planning on settling down in my hometown, so I wouldn't need the property. I am willing to let it go for the comfort of my parents. But, I need an expert opinion on the reverse mortgage. I take it that there have to be some cons. Can someone share the cons of the reverse mortgage?

    Share your suggestions.

    Thanks in advance
     
  2. Happyflowerlady

    HappyflowerladyWell-Known Member

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    From what I have heard about a reverse mortgage, the house would have to belong to your parents, and not to you. They have to be over a certain age, I think it is over 65, and then they can get the reverse mortgage on the house. this gives them the right to live in the house until they both pass away, and then the mortgage company owns the house and can sell it. I think there is a short time period for you to get their belongings out of the house before the company takes it over and sells it.
    From what I have heard from people who have done this, it works out fine; but you should check out several companies and see what differences they offer before mortgaging the house.
     
  3. Jessika

    JessikaActive Member

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    Be very careful of this. There have been a few scams where the house owners take out a reverse mortgage, and then the new owners start charging them rent and raise it until they can no longer afford to live in the house, or renovate the property without the residents permission to force them out. Either way it then lets them sell the property on cheaply and leaves the seniors without house or money. Have a look for "Reverse Mortgage Scams" to find details.

    Depending on what the property is, your parents might be better to sell it outright and move somewhere smaller, or take in a paying lodger.
     
  4. ptahm22

    ptahm22Active Member

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    Here's a link to some disadvantages of reverse mortgage. They shouldn't discourage you though, they are just factors to consider before making your decision.

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