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ownedgirlie -> RE: Reverse Mortgages (6/13/2008 2:20:41 PM)
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You make some great points, BRN. Fortunately my mother is not in such a position, but I know of people who are. We have such a throw-away society when it comes to our elderly, I actually like knowing there is a program available for elderly folks who are not well off financially, to be able to have a home to live in. As far as I'm concerned, they have contributed plenty to society, and I personally hate knowing about people in their later years, often strapped with medical, dental and prescription bills, who are unable to keep the home they live in.
You must be 62 to qualify, and meet minimum income requirements. I believe there is also a counseling session with HUD required, too, so you fully understand the process. In other words, RMs exist to protect the poor elderly.
Poor elderly aren't likely going to have anything to leave their heirs anyway, but I agree that my parents did their job of parenting me and once I became an adult of my own, they owed me nothing. Anything my mother gives me now is considered an unexpected gift, and a gift that I am very thankful for.
As for when the home occupant dies, the heirs can refince the home and keep it themselves, sell it and keep any equity above the loan payoff amount, or give it back to the bank. The bank will sell it and make its money (in a perfect world) off the equity above the loan amount.
If it's not this program, it will be a government subsidized program to protect our elderly and make sure they don't end up homeless. Not all elderly folks who are poor have kids who are well off enough to take them in. Where should they go?
Interesting stuff to think about.
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