Anybody Have Experience with a Reverse Motgage?

[Danang Sailor]

We're in a tight financial situation right now, and this is looking like a good way to pay some things off and ease our
money outflow. Does anyone know about any hidden pitfalls with these? We don't need any problems, just solutions.

Also, if anyone has had a good (or bad ) experience with a lender on one of these we'd appreciate knowing who, and why
you feel that way.

Thanks!

 

[muleman]

The one drawback is they try to beat you down bad on the appraisal and you still pay all expenses like taxes,insurance etc. Five years ago when property values were up it may have been a better deal. Get an offer but don't pay any up front fees. Remember your taxes etc. will continue to go up but your payment from them won't.

 

[loboloco]

Danang, I have had a couple of real estate lawyers describe these as a rip-off. I would be very careful.

 

[waybomb]

Too many ways to get screwed. I'd be very wary.

 

[rlk]

Be sure to read the fine print. Sometimes there are clauses that they have the right to inspect the property periodically and insist you do maintenance to their satisfaction; ensure you understand the wear and tear items; ensure you understand the termination date very well; etc.

Again, read the fine print very carefully, perhaps have a real estate attorney explain everything to you.

Good luck.

Bob

 

[Adillo303]

have a real estate attorney explain everything to you

This is the most sound advice. For this much $$ you need someone on your side. The lender is not that person.