Hello

I'm only 17 so I have one of the most limited understandings of anything financial. My grandmother took out a reverse mortgage and I'm the heir. What are my options?

The house was appraised at 650,000 dollars so my grandmother took out the largest amount she could ($234,135) and blew it in 7 months. Some of it went to renovations on the house, but I don't know what happened to rest. We live SSI check to SSI check. The APR is 8.64% and the balance was at $258,350 as of november 30th.

Well, Mr./Mrs./Ms. 17 year old you don't have any options.

Sorry!

You might finish High School as your first option. But keep in mind that an "option" is the right but not the obligation to perform some act at a future date.

Does your Grandma not like your mother or father?

It's kind of odd for Grandma to make her 17 year old grandchild the heir of her $650,000 dollar home. Of course if I had to do all over again I would have had my grandchildren FIRST.

My Grandma was born in Sicily (circa 1896) and with her third grade education, in broken English, with an Italian accent, while throwing a grapefruit at your head, she would tell you to your face:
I like this part though:
Good for her.

She's probably an old hippie from back in the day and still smokes pot.

Can you post a pic of Granny?



P.S. She should of had you co-sign a new mortgage with your income from Burger King because at 80% LTV she could have pulled $520,000 cash out of the house then just kept the cash and let the house go into foreclosure.

Lenders LOVE 17 year olds because they have a long time left to pay interest and they LOVE to get you started paying interest as young as possible for as long as possible.

I think your Granny inhales!

__________________
Gary Spicuzza, *SAFE
Copyright 1956
No Rights Reserved
*Self Appointed Financial Expert

That doesn't sound like a reverse mortgage.

A reverse mortgage typically pays you each month from the equity in your home up to a certain point (80-90%). So if you were the heir with a reverse mortgage you would have no issues except to sit there and collect the rest of her reverse mortgage checks.

It sounds like she took out a mortgage or home equity loan on the house and you guys can't really afford repayment?

You could get more money out of the house like Gary said and just throw it into some type of safe investment or savings account and use that to pay for the house and nothing else. That should give you a lot of time to not worry about it until you get situated with income.

If you can't afford the payments, there isn't a whole lot you can do besides borrow money for it, or just sell the house and buy a cheaper one that you won't owe anything on.

Personally I'd just tell your grandma to max that thing out and spend all the money and you need to get back down to Burger King or finish school and figure out what you are going to do in your life instead of worrying about being the heir of a large asset

__________________
Free Financial Advice

How to Make Money on the Internet

With the above answers the 17 year old heir wigs out......

__________________
Gary Spicuzza, *SAFE
Copyright 1956
No Rights Reserved
*Self Appointed Financial Expert

Haha, thanks for the input. My mom is a druggy and my dad is an alcoholic, so no, she's not too fond of them lol, and it's definitely a reverse mortgage; my grandmother just took the second option to withdraw the lump sum.

I'm definitely finishing highschool; everyone would kill me if i dropped out haha, and I'm going to college. I'm the science, math oriented type, but who knows: i may yet end up at burger king.

Would you like fries with that?

So then your financial situation is tight even though you have no payments due for the reverse mortgage? When your grandma passes on the heirs will be have the option to pay off that reverse mortgage or the bank will repossess the house and get their money out of it, I wouldn't worry about it right now, either way it's going to be taken care of when the time comes.

__________________
Free Financial Advice

How to Make Money on the Internet

A reverse mortgage is a loan available to seniors (62 and over in the United States), and is used to release the home equity in the property as one lump sum or multiple payments. The home owner's obligation to repay the loan is deferred until the owner dies, the home is sold, or the owner leaves