Reverse Mortgages

[JB in so cal]

Anyone in the business that does 'em? Pros/Cons. My parents want to stay in their house.
Thanks.

[Tequila-John]

Anyone in the business that does 'em? Pros/Cons. My parents want to stay in their house.
Thanks.
My parents did one on there home that was paid off in Laguna Beach.
Pro's = Having money without having to pay it back with a monthly payment
Cons= Very exspensive to write. The lender charges ALOT to write them
who ever get the home at time of death needs to pay the negitive back either with cash or refi'ing the home into there own name.

[JB in so cal]

from what I understand, there shouldn't be any negative balance as the lender won't payout more than, like 70% of home's value.

[Tequila-John]

yes you are right on the 70% payout. But when the last surviver dies they payout needs to be paid off either by the person who the home is left to or the bank takes it for payoff

[JB in so cal]

yes you are right on the 70% payout. But when the last surviver dies they payout needs to be paid off either by the person who the home is left to or the bank takes it for payoff
but, say both parents die and the home is left in trust or willed to a survivor; that person can sell and keep any proceeds left after payoffs, right?

[Tequila-John]

but, say both parents die and the home is left in trust or willed to a survivor; that person can sell and keep any proceeds left after payoffs, right?
Yes. Bottom line it has to be paid off FIRST

[rodnjen]

I'm not in the business but if you look a the math the fees and risks are pretty substantial. You would probably be better off loaning them the money.

[Havasu Luvr]

Call American Mortage, Shannon Shannon @ 760-843-3899, tell them David @ Big Baller Digital referred you. She will be more then happy to answer all the question