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Reverse mortgage– Jun 29, 2022(6 replies)
We've reached a point where we are looking at either moving from the Bay Area or obtaining a reverse mortgage. House well off, liquid income pension & ss. Has anyone had a good experience with a RM and if so, can you share the professional you worked with? Thanks...Not wanting to leave the bayJun 29, 2022
Reverse Mortgage buy back - any experience, advice or help– Dec 14, 2021(1 reply)
Hi my elderly parent own(ed) a home in San Carlos. A sibling pushed them into a reverse mortgage a few years ago when they didn't really need it.
Parent still lives in home and is now desperate to buy back his home. He took out 500k at 6% interest in the reverse mortgage, paid back the old outstanding mortgage of 300k and my sibling took the rest (they needed the money, that is why the parent was pushed into it). The reverse mortgage company had appraised my dad's home for $1.5 million at the time. At that time that actually seemed high by about 300k but not sure why they would appraise it at an inflated value.
I am hoping to find someone (disinterested) who could help us determine what is the best course of action. I have read one can buy back the house by paying off the reverse mortgage loan plus fees and accumulated interest owed, so probably way more than 500k now. Since the loan amount was relatively low to the value of them home, I would assume dad could refinance it and just pay a regular mortgage. He should be able to afford a 600k mortgage.
But I would really like a comparison of what is the best course of action as I am sure there are all sorts of pitfalls we haven't thought of.
Anyone else buy back their home and experiences or things to consider? Anyone know of a specialist who we could pay to provide us a comparison of options? Or a website that would help us understand best course of action?Dec 14, 2021
Parent wants to do Reverse Mortgage but doesn't seem a good idea– Jul 25, 2018(6 replies)
My dad owns a home with very small mortgage in Lafayette that is now worth a good deal. He's in great health, super active and is 81. He has a good income that should cover all expenses plus could save - but my sibling milks him for money and has for decades so dad struggles to have enough every month and has gone through all his savings.
I am very concerned about this reverse mortgage and he is defensive as to why he wants it. The only explanation was that he is worried that at his age things could change quickly so he wants to have the cash for us to be able to afford to pay for in-home care if he needs it. He's very independent and definitely wants to stay in his home no matter what but he still has a lot in his 401k and IRA (takes mandatory distributions) so I would think it would be better to access those instead. He won't talk to me about this decision which is usually the case when he plans to give more money to the sibling but I don't know for sure.
From what I see, reverse mortgages are normally for people who can't meet monthly expenses or who have no other assets to access so need to tap into their home but in his case, since he doesn't have difficulty meeting monthly expenses (or shouldn't if not giving all his money away) it wouldn't make sense - and if he wanted to tap into a source to give more money away, won't it be better to close the IRA or 401k and use those funds? I just can't figure out why a reverse mortgage would be good when he could easily live another 15 years like his father and brother both of whom lived to be almost 100. I told him think if you had done a reverse mortgage 15 years ago you would have been locked into a value half what it is now. It always feels like the top of the market and I am sure we'll go through another slump in the next few years but I still don't think it makes sense for him.
Dad is naturally sensitive to making his own decisions so I want to be respectful of that but on the other hand I just can't stand back and not intervene if the decision is financially bad considering it's his one big asset. (For background, a similar thing happened to my divorced mother, in her case all her savings were gone through until all she had left was her house so she sold it suddenly and I just stood back afraid to step in knowing how unstable my sibling is but I regret that so much).
I want to approach this logically but who do I turn to? What sources tell me if it is the best decision for him or not? He went to his "retirement guys" and they told him it was a good decision and that reverse mortgages are now good, that they have fixed the problems they had before. I tried to tell him of course they would say that but he just won't listen. I think he feels overwhelmed and doesn't know what to do and I am just worried sick after seeing what happened to mom. If it is better for dad to tap into his 401k & IRA instead of a reverse mortgage and something were to happen to him, would I as his POA be able to take a home equity loan or come up with more money easily?
Any advice, contacts, webpages or experiences would be so welcome!Jul 25, 2018
Reverse mortgage?– Jun 6, 2018(6 replies)
my husband and I are considering getting a reverse mortgage and wondering what others think about them. We are 55 and 65 and would want to rent out a studio in back. Hoping to have money for our daughters too rather than giving House to the bank. Our cash flow is low currently butwe have good equity in the house
-need advice ASAP about others experiences with reverse mortgage
do we pay a lot of interest?
Thx!!!Jun 6, 2018
Archived Q&A and Reviews
Can anyone please recommend a reverse mortgage broker or consultant in the Berkeley area (or nearby) who is experienced and reliable/trustworthy? If there is someone you have had a bad experience with, we would also appreciate the warning. Trying to help my aging parents Does anyone know of a credit union in the Bay Area that is offering reverse mortgages? We're trying to keep the start-up costs down. Seeking reasonable rate on reverse mortgage
Laura Levy of Holmgren Assoc. 510-521-6265 is both knowledgable and very caring. I wholeheartedly recommend her. Isadora
I have done a couple of reverse mortgages for clients with similar situations as yours and used conventional lenders with some success. There is also a company by the name of Nestworth that offers only reverse mortgages. The advantage is they are a private company so do not have to follow the government guidlines that conventional lenders are required to. That being said, I am slightly skeptical about the program and would suggest you do your due diligence before hand. ie how long is their capital going to last? mathew
I recommend you talk with Laura Levy about reverse mortgages -- she specializes in them. She's very knowledgeable, experienced, and kind. Her office is (510)521-6465 and cell (510) 219-4997. E-mail is laura [at] mortgageholmgren.com I arranged a reverse mortgage for my elderly mother (not through Laura -- my mom is in the Southeast), and it was the only possible way for her to remain in her home. We are realistic though, and don't expect to have any equity left by the time she is no longer able to live there and the loan is due. It's an expensive loan, but you can amortize the costs over time and minimize your risk with mortgage insurance (I believe it's required). Good luck. Anon
Marge Bottari from All California Mortgage has helped a lot of my friends parents. She is fabulous and knows her stuff. 415 464 8209 415 305 3425 mbottari [at] allcalifornia.com rachel
Can anyone recommend an experienced, honest, reliable reverse mortgage broker? I am looking to get a mortgage on my parents' house in LA, but I'm having a hard time finding recommendations/reviews/testimonials of reverse mortgage professionals. I want to work with someone with knows exactly what he/she is doing, who can educate me as to the process and outcomes, and who can make it all happen FAST. Please, if you know of anyone, reply with their contact info and let me know WHY you love them! Thanks BPNers - sara
Marge Bottari from All California Mortgage is fabulous- really listens, and will do everything in her power to help. 415 464 8209 (direct) 415 305 3425 (cell) mbottari [at] allcalifornia.com rachel