Reverse Mortgage - The Finance Forums: Financial planning, debt help, loans, mortgages, retirement and 401k, investment, and general finance discussion forums

julian_in7 · #1 (**permalink**) 01-24-2007, 12:34 PM

I have an elderly friend (86 yr old man) who recently lost his wife this year. Prior to her death (probably while she lay on her death bed) an investment company representative approached my friend and offered, what he was told a reverse mortgage. He was told he would never have a bill to pay for the rest of his life and that he can live out the rest of his life in his home. He lives on a monthly fixed income.

This gentlemen has a 3rd grade education and is not quite literate. My fear for him now is that he has been told to moved out of his home because this company owns the home and that they will be making repairs in order to move in themselves, before the end of the year. My God its almost December.

Can someone point me in the right direction as to who I can seek help from to check the credibility of this investment company and to provide some answers to my friend. Even to get documentation of what was signed. He does not have in his possession ANY signed documentation by this company because he was told by them, not to worry "we take care". The company representatives would approach my friend in a drinking establishment to have him sign paperwork on various occasions.

Oh, by the way my friend's wife was buried and all arrangements were made by this investment company with the representatives claiming to be "family", because my friend is their "uncle". My friend's burial plot has been changed to this company representative’s name along with my friend's name on the deed?

jeremiah_in1 · #2 (**permalink**) 01-24-2007, 02:12 PM

You need to get your friend to an attorney as soon as possible, whether a private attorney or a legal services attorney and of course the reverse mortgage is not necessarily a bad option in this case - What is bad, are some of the companies selling the reverse mortgage AND other "investment opportunities" - Even with limited details, this sounds like something that your friend should seek professional help.

riskey58 · #3 (**permalink**) 02-22-2007, 07:56 PM

I have heard of the reverse morgages. I would like to know if you think it is a good thing to do? My husband and I have been talking about it, but don't know very much about it.

taiarain · #4 (**permalink**) 02-23-2007, 05:48 AM

The concept of reverse mortgage is basically the bank paying you money until you die. It's meant to provide a modicum of income to older folks and banking on them dying quickly enough to make it a sound investment for the bank.

riskey58 · #5 (**permalink**) 02-23-2007, 07:50 PM

Thank you for your information. The more I know about it it will help decide if we want to do it or not. It is something we really have to think about.

sunshine · #6 (**permalink**) 03-07-2007, 04:23 PM

Think long and hard, it's a very important issue. I hope you make the right descision.

joeljito · #7 (**permalink**) 04-24-2007, 10:22 PM

Hi -

Came across this thread in search and though I would chime in:

1. Julian, would suggest your friend get in touch with the Attorney General's Office in your state. Legitimate reverse mortgage products are "non-recourse" loans meaning the homeowner cannot be foreclosed on or forced to move from the home even if the amount of the reverse mortgage ends up exceeding the home's value.

2. Reverse mortgages can be a very good option for seniors in the right circumstances. They are expensive (in terms of closing costs), but can give a peace of mind not availalble through regular home equity loans.

I designed a reverse mortgage self assessment tool to help you decide if a RM makes sense for your situation. It can be accessed at [deleted]

Not meant to be a spam post. If link is deleted, I understand.

Thanks