This is a problem

[n2mark]

Once a week I retrive my mail from our lock mailboxes,, Now this is sad, received 3 mails for seniors to take advantage of the reverse mortgage. Sure, right away Info sent from California, okay, shred those, then another from Arizona Maricopa County Seniors only.

Interesting, they said recent changes in HECM guidlines, whatever that is, now effective in the state of Arizona, may allow select homeowners to eliminate their mortgage payments altogether with these new guildlines. Your home .. located at..... may be eligible. The FHA HECM mortgage has a low interest rate that can be used to pay for healthcare, prescription drugs, repairs on your home, consolidate your mortgage and credit cards. There are no income or credit limitations and current bankruptcy is still eligible.


Call today to set and appointment to talk with an AARP or HUD Counselor.

On the back of these page is reverse mortgage. Oh no way, how many seniors are going to be suckered with this?


Senior

[roguevalley]

1. Many I'm afraid.

[rzemanfl]

2. Do reverse mortgages have reverse foreclosures? So after

the Sheriff's sale you get your house back? If not, they're not reversed, they're just mortgages.

[n2mark]

3. Think I will call them tomorrow just to find out about this scheme.

This is considered a loan on the equity, here is the last question of the back of the page..


When is the loand due?

When none of the borrowers are remaining in the home, the loan is due. The family or estate can pay off the mortgage with proceeds from a sale of the home or by refinancing into a traditional mortgage.

Sounds like my kids will be screwed if something happened to me. I've heard reverse mortgage is dangerous.

[rzemanfl]

4. What if you are in the hospital? Are you "no longer remaining in

the home?" What about obligations to "keep the premises in good condition and repair and not to commit waste or allow waste to be committed on the premises?" What if you hire a contractor and he puts a mechanic's lien on the property?

This has got to be a variable rate. Who would loan someone x dollars at a flat rate with no principal reduction or interest payments when the person might live another forty or fifty years and the loan doesn't come due until they die? Ask to see a sample note and mortgage and read the fine print.

[Nay]

5. I was under the impression that in a reverse mortgage, the house

goes to the mortgage company upon the death of the owner. The amount of money coming to the owner before his death is figured actuarily, based upon the estimated lifespan of the owner. If you live longer than their estimate, the mortgage company starts to lose money on the deal. If you die before, they do better.

In either case, the heirs do not ever get the house -- but I did believe that heirs never had to "pay off" anything, because the house owner upon death of the person who took the mortgage out IS the mortgage company, and that is the total of payment owed to the company.

[Cleita]

6. I've know people who benefited from them.

They were able to stay in their homes and get some needed income. If they had sold their homes, they would have had to move into an apartment. This way they could have their cake and eat it too. Supposedly when the bank takes over the property after you die and they sell it, I guess the difference left on the value goes to the heirs if there is any left. No one has died yet, that I know, so I don't know how that part will really play out.