Reverse mortgage.

[Brad Ellis]

All,

Loan officers and financial advisors who tell you that a reverse mortgage is simply a bad deal- without knowing the precise financial circumstances of the borrower(s)- are giving you very bad advice. I'd steer clear of all of those folks.

There are certainly times when reverse mortgages are not the best way to go, but there are also times when they are the exact right route to go. It depends upon the borrower's circumstances.

Since 90% or more of these go thru HUD, note that HUD is also monitoring this- and if you go this route and HUD sees clearly that it was not the appropriate path, you will have some explaining to do.

Anyway, as I said, you do these as if it were a normal FHA assignment (unless your client tells you otherwise- and YES- ask if you do not know).

Brad

 

[Urbanz]

Mark,

The problem with a cash-out refi is the senior still has a loan payment. A reverse mortgage has no payments.

Are there some issues with a reverse mortgage... Sure! But - take a look at the borrowers and realize they can have a better life additional tax free income.

Len

Yes, they have the full payment, but in my book it is still better with a cash out because they are in control of their own money and property. This is tax free too up to 250k with the elimination of capital gains if they do it once a year.

I have read the detail, it costs the borrower much more money in a shorter period of time, gives control to a lender instead of the homeowner, but with the cash out the borrower can take care of larger emergency medical expenses that a reverse mortgage would never provide, if needed.


Reverse mortgages and timeshares are in the same catagory to me, bad deals all around...

 

[Brad Ellis]

Urbhanz,

Wrong.

Brad

 

[Couch Potato]

Good Advice.

All,

Loan officers and financial advisors who tell you that a reverse mortgage is simply a bad deal- without knowing the precise financial circumstances of the borrower(s)- are giving you very bad advice. I'd steer clear of all of those folks.

There are certainly times when reverse mortgages are not the best way to go, but there are also times when they are the exact right route to go. It depends upon the borrower's circumstances.

Since 90% or more of these go thru HUD, note that HUD is also monitoring this- and if you go this route and HUD sees clearly that it was not the appropriate path, you will have some explaining to do.

Anyway, as I said, you do these as if it were a normal FHA assignment (unless your client tells you otherwise- and YES- ask if you do not know).

Brad

Now there is some excellent advice. :new_smile-l:

Sometimes a reverse mortgage is the best choice possible. Every case is different; they are not good for everyone, but perfect for some.