Reverse Mortgages, the next boom or does it just seem like it?

[DTB]

Invariably, if not when done, certainly at the end of the people's life. I knew one who blew all his pension, his wife's savings (she worked at Walmart for decades and had a tidy sum) and then tried to make ends meet by running 10 flea market booths, loaded with overpriced knickknack shelves and beanie babies. By the time he paid the gas bill servicing them from SW Missouri to Tulsa to Alma, AR, in a 10-cylinder Ford truck, he was barely breaking even. By the time he and his wife died the house was in shambles and his daughter the estate trustee, let the bank come get it. It wasn't worth fixing up. And they didn't have enough money to even bury them. She and her sister paid for the funerals out of their own pockets.

 

[Terrel L. Shields]

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Yeah, and I knew the guy well. Wouldn't stay at one job more than a year or two until he was hired by a Food company and spent 10 years there. I knew him 40 years and he was a carpenter, worked building power plants, was a professional trapper for 2 years, worked in a grocery store, then another, tire shop, back to trapping another winter all the way into Colorado, hunting guide, on and on.

 

[Bobby Bucks]

My experience with RMs is that a lot of the homes suffer from extensive deferred maintenance and don't meet the FHA' MPRs.

I don’t doubt that, I’ve seen some awful ones, especially ones with loans over a few years old. Many of the reverse mortgage close outs I do are C5 or worse. Some of them couldn’t possibly have been C4 when funded based on roof, exterior, etc. there seem to be differences with RM closeouts and new RMs. For me the clients that place RM closeouts never place new RM assignments and vice versa. The direct lender RMs are the best, mostly well maintained properties and recent construction. I tend to bid high or avoid new RM assignments on 80 year old dwellings when public data shows it’s probably going to be a nightmare, however, I’ll do the closeout on the same property.

 

[ZZGAMAZZ]

That's a sad commentary on one's life achievements.

Seems to me that members of families affected by an elder death almost inevitably experience estrangement from each other. My mother and her only sister who lived within close proximity of each other didn't speak during the last 30 - 40 years of their lives after contesting my grandmother's will, which was valued at less than $100,000. Of course I was predisposed to support my mom's version of the dispute--till a distant aunt confided in me that she had observed my mom using white-out on the will in order to delete me as benefciary to a residential property!!!! Then the property sat vacant for 15 years rather then being leased because she allegedly couldn't find a tenant whithout a puppy---although my mom loved puppies so much that she once died her hair red to match her miniature red poodle!!!!!. Damn, while writing this silly post I just remembered that all the beneficiaries to my estate died more than 20 years ago. Maybe time to update it?????

 

[Elliott]

RM's, easy to get into, hard to get out of. The owner has no incentive to maintain the house, so some tend to get run down. The heirs then have to figure out if the equity left in the property is worth the effort to 'buy' it. Having a mortgage lender as your 'partner' is not as easy as having heirs figuring out what to do with the property. And your paying for 'insurance' so there is no free lunch.

 

[ZZGAMAZZ]

I don’t doubt that, I’ve seen some awful ones, especially ones with loans over a few years old. Many of the reverse mortgage close outs I do are C5 or worse. Some of them couldn’t possibly have been C4 when funded based on roof, exterior, etc. there seem to be differences with RM closeouts and new RMs. For me the clients that place RM closeouts never place new RM assignments and vice versa. The direct lender RMs are the best, mostly well maintained properties and recent construction. I tend to bid high or avoid new RM assignments on 80 year old dwellings when public data shows it’s probably going to be a nightmare, however, I’ll do the closeout on the same property.

Hey, your comment....can an heir to a RM refinance the property into their name, as a replacment RM???

 

[DTB]

Seems to me that members of families affected by an elder death almost inevitably experience estrangement from each other. My mother and her only sister who lived within close proximity of each other didn't speak during the last 30 - 40 years of their lives after contesting my grandmother's will, which was valued at less than $100,000. Of course I was predisposed to support my mom's version of the dispute--till a distant aunt confided in me that she had observed my mom using white-out on the will in order to delete me as benefciary to a residential property!!!! Then the property sat vacant for 15 years rather then being leased because she allegedly couldn't find a tenant whithout a puppy---although my mom loved puppies so much that she once died her hair red to match her miniature red poodle!!!!!. Damn, while writing this silly post I just remembered that all the beneficiaries to my estate died more than 20 years ago. Maybe time to update it?????

Yeah, I see families squabble over money too. IMO it's crazy. I can pretty much always make money but can't replace my family.

 

[ZZGAMAZZ]

Yeah, I see families squabble over money too. IMO it's crazy. I can pretty much always make money but can't replace my family.

Somewhat related is my ongoing desire to figure out how so many damn people can afford residential housing throughout Orange County, CA, whre I rent. Pal of mine explained that of the estimated 100 homes in his neighborhood--each with current market value $1.2m - $2.4m--about 90 percent have remained in the family from genration to generation, positively affected by a Cali tax protocol that limits tax increases to pennies unless a transfer occurs. Still can't figure out where the thousands of uneducated, illiterate, entry-level individuals live, although I just moved to Costa Mesa only a few miles from the Ocean in a chi chi communitiy comprised of what appears to be 85%+++ apartments, etc. Location/location/location...

 

[Bobby Bucks]

Hey, your comment....can an heir to a RM refinance the property into their name, as a replacment RM???

That’s a good question, I’m not sure what is allowed. It’s always been a mystery to me what goes on behind the RM lender curtain regarding the math, the heirs, escrow etc.

 

[Mark K]

Hey, your comment....can an heir to a RM refinance the property into their name, as a replacment RM???

If you're talking about assuming the existing RM, very doubtful. I don't think many mortgages written in the past 20+ years have been assumable.

Otherwise, you comment is confusing.