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Rainer
47,564
Youree Lundy
Keller Williams Advantage III Realty - Orlando, FL
Your Realtor For Life

Barbara Todaro You nailed the whole point of my question.  For those people who have limited income, do not have other assets and may not qualify for a new mortgage, this is fantastic.  The credit worthiness of a traditional mortgage is not a factor so they can downsize into a home that they still own (and can sell at anytime if they choose).  It is a win win all around.

Jul 10, 2016 07:13 AM
Rainmaker
5,583,178
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

it's a good option for those who have very little income and no savings, as long as they have enough equity to provide a cushion to pay bills and they are at an age where the money will outlast them...

Jul 10, 2016 06:54 AM
Rainmaker
1,231,853
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Yes, it has been used in this area. 

Jul 10, 2016 06:29 AM
Rainmaker
1,723,426
Sandy Padula & Norm Padula, JD, GRI
HomeSmart Realty West & Florida Realty Investments - , CA
Presence, Persistence & Perseverance

Never has happened thus far. HELOCs to buy, but never an HECM to buy.

Jul 10, 2016 10:50 PM
Rainmaker
3,415,644
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Yes and it is a great program. The keys are having a loan officer who is well experienced with it. I wish i would see more of them

Jul 10, 2016 10:49 PM
Rainmaker
4,319,419
Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Youree Lundy - None of my clients - however, I know a good lender in our area for that...

Jul 10, 2016 04:25 PM
Ambassador
3,727,581
Patricia Kennedy
RLAH@Properties - Washington, DC
Home in the Capital

I think that reverse mortgage are the most poorly marketed product on the market right now.  It is really impossible to get information on how they work unless you are getting infomration for yourself and are willing to give huge amounts of pesonal data to someone on the other line.  I've yet to find a site where you can just read about how they work in "Run, Spot!  Run!" English.

Jul 10, 2016 02:31 PM
Rainmaker
2,443,200
Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

The only person I know is my Sister, and she regrets it.

Jul 10, 2016 02:09 PM
Rainmaker
1,525,616
Sybil Campbell
Fernandina Beach, FL
Referral Agent Amelia Island Florida

I have not had a client use this option.

Jul 10, 2016 10:58 AM
Rainmaker
4,980,178
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

I'm with Barbara Todaro on her comment!!

Jul 10, 2016 10:39 AM
Ambassador
5,036,189
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

I think they can work really well for some seniors, but I'm not sure they are always a good thing for the heirs. Am I wrong?

Jul 10, 2016 10:10 AM
Rainer
24,099
Steve Snyder
Private-Money-Loan.com - Los Angeles, CA
310-948-8585 |100% LTV | Stated | Private Money

People get scared of this option because the old school train of thought was to do everythign you can payoff your house. It is beaten into their heads to the point that it is a hard ideal to overcome.

 

Anyone that is retired shoud do it since they get to live rent free. It just makes sense in my mind.

Jul 10, 2016 09:39 AM
Ambassador
2,680,289
Fred Griffin Florida Real Estate
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

     Good for seniors like Barbara Todaro described. 

     Not so good for the heirs, if they cannot afford to refinance the house when Mom and Dad pass on.  I know a family that is very upset that they are going to lose "The Family Homestead", because none of them has the cash or the ability to qualify for a loan to pay back the money Dad borrowed with a Reverse.

Jul 10, 2016 07:45 AM
Rainmaker
3,988,007
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

It has its place and only had one client use it. When others explore it they find they can handle traditional financing and even get a HELOC at rates much more attractive than Reverse Mortgage rates. Buyers need to explore all their options and compare.

Jul 10, 2016 06:45 AM
Rainmaker
5,096,866
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Not yet... 

Jul 10, 2016 06:18 AM
Rainer
27,716
Wesley Johnson
Option Funding Inc - Westlake Village, CA
The better you do, the better we do!

 In Korea they call it the Home Pension ~  that clarifies the asset class.  It is definately benificial to seniors that are dealing with low income, destroyed fico from hiccups in life...

Aug 02, 2016 11:36 AM
Rainmaker
4,557,997
Michael Jacobs
Pasadena, CA
Pasadena And Southern California 818.516.4393

I have heard of the program but none of my clients have utilized it.   

Jul 11, 2016 01:28 AM
Rainmaker
987,652
Jennifer Mackay
Counts Real Estate Group, Inc. - Panama City, FL
Your Bay County Florida Realtor 850.774.6582

Not in my area no

Jul 11, 2016 12:17 AM
Rainmaker
898,368
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Have not worked with reverse mortgages. It should work well for some if the fees are not too high (as they used to be). 

Jul 10, 2016 11:22 PM
Rainmaker
4,858,349
Richard Weeks
Dallas, TX
REALTOR®, Broker

No.  Investors usually pay cash or use hard money lenders.

Jul 10, 2016 11:04 PM
Rainmaker
3,071,489
Tony and Suzanne Marriott, Associate Brokers
Serving the Greater Phoenix and Scottsdale Metropolitan Area - Scottsdale, AZ
Haven Express @ Keller Williams Arizona Realty

no

Jul 10, 2016 10:44 PM
Rainmaker
4,434,127
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

No.

Jul 10, 2016 09:17 PM
Rainmaker
7,799,079
Roy Kelley
Retired - Gaithersburg, MD

This is an excellent option for some seniors. Many agents fail to recognize when a reverse mortgage should be considered.

Jul 10, 2016 08:58 PM
Rainmaker
1,157,785
FN LN
Toronto, ON

No.

Jul 10, 2016 01:58 PM
Rainmaker
1,617,866
Harry F. D'Elia III
WEDO Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

I only know of one person who use this product and was very happy with it.

Jul 10, 2016 12:52 PM
Rainer
94,105
Val Evans
Scottsdale, AZ

One of the biggest banking scams ever. Anybody that knows anything about finance would know why.

Jul 10, 2016 12:39 PM
Rainmaker
1,237,820
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

There is a lot of fraud and most are very weary of using a program that got a bad reputation.  In theory that works....

Jul 10, 2016 11:54 AM
Rainmaker
1,683,862
Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

No,  I haven't had that pleasure yet.

Jul 10, 2016 11:40 AM
Ambassador
2,158,368
Silvia Dukes PA, Broker Associate, CRS, CIPS, SRES
Tropic Shores Realty - Ich spreche Deutsch! - Spring Hill, FL
Florida Waterfront and Country Club Living

It's a great option if the person can live in the home until they die. If they have to go into a nursing home situation at a later time and they cannot sell the home to pay off the reverse mortgage, it may not have been such a great option in hindsight. 

Jul 10, 2016 09:49 AM
Rainmaker
4,908,183
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

None of my clients have yet.

Jul 10, 2016 09:19 AM
Rainmaker
3,986,196
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

My parents used the reverse mortgage for another reason and got screwed...they wish they had talked to me first

Jul 10, 2016 08:52 AM
Ambassador
3,340,605
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

No.  Not yet.

Is it a great option?  That would depend on the client and why they may want it.  

Jul 10, 2016 06:31 AM