# Reverse mortages



## rgp (Sep 21, 2022)

Has anyone else noticed an increase in commercials for these ?

TV/radio , no matter where ... the adds are way up for them, Seleck and other celeb's pitching them.

There must be a huge profit in them ? Are people really so naive that they buy all the hype ? or are so many so "desparate" for cash ? 

In some of them,[adds] the big selling pitch is ..... you get all this money, and need not move. OK, but the property is no longer "yours" . It's theirs, and as i understand it .... everything you may want to change, must be approved by the new "landlord" . This part I'm not sure of but ..... some friends were saying that the "past-owner" [you] is responsible for some of the cost of minor maintance , paint & such ... and the new "owner" sets the standard that the home must be maintained ?

I have never liked the whole idea of them since I first heard of them. 

I have a "feeling" that some seniors are being played ...... Big-time.


----------



## Alligatorob (Sep 21, 2022)

I only know one couple who have done this, and they say it worked out fine for them.  They are in their 80s and do not expect to leave much of monetary value to their heirs.  I think they researched it pretty well beforehand.  They used the money to fund a Mormon mission, a lifelong dream, I guess.

Don't think I will ever do it (the reverse mortgage or the mission), for some of the same reasons you mentioned.

And I agree the way it's advertised somebody must be making big bucks off of it, always a reason to be suspicious.


----------



## Nathan (Sep 21, 2022)

Alligatorob said:


> There must be a huge profit in them ? Are people really so naive that they buy all the hype ? or are so many so "desparate" for cash ?



Perhaps not "naive" but maybe out of options.   Maybe big medical expenses, legal judgement or...

There's always predators of the less fortunate.... on the take. 

At some point we'll be seeing the "buy gold" or "sell your gold" commercials.


----------



## Jace (Sep 21, 2022)

You have to be _very careful....._


----------



## Alligatorob (Sep 21, 2022)

@Nathan your post looks a little odd, it says you are quoting me, but the words come from @rgp 's post.

Not a big deal, but makes me wonder  how it happened.


----------



## Lawrence (Sep 21, 2022)

Alligatorob said:


> your post looks a little odd, it says you are quoting me, but the words come from


Great minds think alike.


----------



## rgp (Sep 21, 2022)

Nathan said:


> Perhaps not "naive" but maybe out of options.   Maybe big medical expenses, legal judgement or...
> 
> There's always predators of the less fortunate.... on the take.
> 
> At some point we'll be seeing the "buy gold" or "sell your gold" commercials.




 Hell the 'buy gold' guys are all over the place now. I'll venture a guess that when the 'sell gold' starts .... it will be a quite a loss for those that hold it ?

I didn't think of the big medical expence angle ..... I hate to think that people get painted into that corner .....but of course it does happen .. sad for sure.

As someone mentioned here before ... I personally would rather help them , then the college loan folks ......... jmo


----------



## Brookswood (Sep 21, 2022)

Reverse mortgages have huge fees attached to them.    They are a last ditch alternative to be used only by people with very little cash and very expensive property.    Personally, I would see a financial planner and/or credit counselor long before the time I would consider a reverse mortgage.


----------



## Ron Stukey (Sep 22, 2022)

The fees and commissions to obtain a reverse mortgage are high and thus it is a poor way to fund retirement.  Reasons to use one is where it is important to remain in an existing home or funds are really needed to modify the residence.


----------



## mathjak107 (Sep 23, 2022)

Reverse compounding interest aint your friend .

the fees and reverse compounding eats up your value in no time .

Not only  that but the lender can force big repairs you can’t afford to be done as part of every loan agreement


----------



## shoprat (Sep 23, 2022)

*my first reaction to these kind of ads are if there is a celebrity hocking it I'm not interested*


----------



## garyt1957 (Sep 23, 2022)

They sound great till you actually look into them.


----------



## rgp (Sep 23, 2022)

shoprat said:


> *my first reaction to these kind of ads are if there is a celebrity hocking it I'm not interested*



 LOL ! ........ I agree


----------

