Reverse Mortgages for the Elderly

I have recently discovered a process called "Reverse Mortgages" specifically for persons of 62 years of age or older. This process has been around since 1987 and I now compelled to post this topic because I beiieve there are lots of elderly people who can take advantage of this process which will increase their quality of life with the mortgage monies they are struggling to pay each month.

Here are some websites and/or links which may be helpful:

National Center for Home Equity Conversion Mortgage (NCHEC)

www.aarp.org/revmort/

www.reverse.org/HECM%20Documents.HTM

I hope this information will help to save an elderly person's home.

Sincerely,

supervt

[charlesa6]

supervt

welcome to the forum.

[Drob]

I could be wrong from reading that information about reverse mortgages, but I see another money grubbing lender. I cannot say forsure if they are praying on the elderly, please I do not wish to slander. I will say I am not aware of any lending institution that is out to help anyone. There are some many rules attached to this venture for an elderly person. I would say beware of anyone bearing fruits, What is behind their back?

[vanton57]

Drob - you are correct the banks are in it to make money.



Supervt - Reverse Mortgages have been around for at least 20+ years. I agree AARP has some of the best and the most information regarding this type loan.



They are designed to "allegedly" to "help" the elderly. I have seen some cases where I have closed this type of loan and from all appearances, it would help the person(s) that were pulling the loan. Of course the truth in who is making out on the loan is dependent upon how long the individual lives once they pull the loan.



Yes, they only loan about 62% or 65% of the value of the property at the time of the loan. Advantage is, as long as the person borrowing is alive and living in the home, they do not have a mortgage payment nor do they ever have to repay the loan, unless they refinance it.



If they move out to a nursing home or to live with a relative then the property goes to the bank. If it is a married couple taking the loan, as long as either one is alive and living in the home, it is theirs to live in with their usual expenses minus the mortgage payment. It's a great way to spend the kids inheritance.



If the loan is never refinanced, the mortgage matures on the person's 150th birthday or their death, whichever comes first. The borrower does go through counseling before the loan is processed and the loan documents are signed. Now we all know, no one counseled on how the money is generated for the loan and never will be.

To those who responded to the Reverse Mortgage post, you all have valid points. Perhaps this type of program is not for everyone nor is it the best, however it may be something that will avoid a devastating situation like the one located at:
www.wfts.com
click on "News/Archives"
scroll down to "December 14th"
click on the "89 year old...." link

I am still looking for any ideas, referrals, game-plans, strategies or whatever to fix this and get her home back ----- please let me know, ok?

supervt

[vanton57]

http://www.ripoffreport.com/reports/ripoff117539.htm

http://www.ripoffreport.com/results.asp?q1=ALL&q4=&q6=&q3=&q2=&q7=&searchtype= 0&submit2=Search%21&q5=fairbanks+capital

I don't even know if a bankruptcy would stay the foreclosure being this close to eviction time.