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Ray Henson, Realtor (eXp Realty of California, Inc. (lic. #01878277))

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Rainmaker
1,310,972
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

I have had clients who had reverse mortgages. One used the proceeds to buyer his retirement home in another state during the short sale days. He paid cash derived from the mortgage. When he sold his house here, he moved to Arizona and still had enough money left over after paying off the mortgage to pay cash for a summer home at Lake Tahoe.

They are a good fit for some folks. 

Mar 11, 2020 09:43 AM
Ambassador
2,435,649
Kat Palmiotti
eXp Commercial, Referral Divison - Kalispell, MT
Helping your Montana dreams take root

I think they could be a great tool for the right home owners, but no, I haven't had a client use one (yet).

Mar 11, 2020 09:38 AM
Ambassador
3,125,255
Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate (435) 632-9374 - St. George, UT
St. George Utah Area Residential Sales Agent

They do work, especially for those who want to only pay taxes and utilities rather than a mortgage on a home, putting their money elsewhere. Also, when people do not have heirs or have zero intentions of leaving an estate to their children, it may be a good decision.

Mar 11, 2020 11:39 AM
Rainmaker
1,844,171
Lyn Sims
Schaumburg, IL
Real Estate Broker Retired

I think they are a good option for some people. I know that 'the kids' are usually not approving as Mom & Dad are sucking off the nest egg that they intent on inheriting.

 

Mar 11, 2020 10:33 AM
Rainmaker
5,772,575
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Raymond,

The only one, I have seen became a mess for one of my friends family.  I would be very careful and seek the advice of a pro--not just the seller of this, but a CPA and an attorney to read the fine print.  Our friend's mom is alive and well, she did it without consulting her kids...A

Mar 11, 2020 10:20 AM
Ambassador
3,344,906
Kathleen Daniels, Probate & Trust Specialist
KD Realty - 408.972.1822 - San Jose, CA
Probate Real Estate Services

They can be good for the right people. 

Don't know if I would ever use one. 

No clients, yet. 

Mar 11, 2020 09:49 AM
Rainmaker
921,504
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

Have you ever taken out an adjustable rate mortgage?

How about leased a ride?

Used part of your investment portfolio for short term profit opportunities?

Signed a 1 year contract with a provider who did not provide?

Reverse mortgages have their purpose and for some it is INCREDIBLE....until they must change their  plans ....just like everything mentioned above.

My experience has been even when plans do change the cost is NOT unreasonable.

I have suggested a Reverse Mortgage for purchase but for some reason buying at 70% of value and never making a payment is too good to be true.

Mar 11, 2020 03:28 PM
Rainmaker
643,875
Greg Large
ERA Real Solutions - Grove City, OH
A Tradition of Trust

An excellent option for many. Working with three clients considering that option. 

Mar 11, 2020 02:56 PM
Rainmaker
763,783
Tony Lewis
Summit Real Estate Group - Valencia, CA
Summit Real Estate Group Valencia & Aliso Viejo

It would be great for someone that doesn't have anyone to leave their home to.

Mar 11, 2020 02:38 PM
Rainmaker
5,583,278
Barbara Todaro
RE/MAX Executive Realty - Happily Retired - Franklin, MA
Previously Affiliated with The Todaro Team

they are not as easy to get as they originally were.... they qualify the applicants....  that's a desperate person who agrees to that type of mortgage... if you make no payments, the interest is added on to the principle..... the gov. made those more difficult to qualify for because they ended up with upside down homes...

Mar 11, 2020 03:14 PM
Rainmaker
472,114
JoAnn Moore
The Mortgage Market of Delaware - Georgetown, DE
Home Loans in Delaware

The home owners have to realize they will need to pay the home owners insurance and property taxes each month. A lot of people hear the part about no mortgage payment but don't realize this doesn't mean you don't need to pay these two necessities. 

 

Mar 11, 2020 12:08 PM
Rainmaker
2,781,013
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Kiss of death...Like making a deal with the devil for your soul. Start-up you get everything you bargained for. At the tail end is the price paid for it all! 

 

Mar 11, 2020 10:55 AM
Rainmaker
711,752
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

We had a class on reverse mortgages a few weeks ago.  They appear to be a great option for some people.  And yes, one of our agents used one for a purchase for herself during the recession. Worked great.

Mar 11, 2020 10:34 AM
Rainer
231,948
Eva B. Liland Century 21 Doug Anderson
Century 21 Doug Anderson - Lancaster, CA
Glad to be of Service 661-714-1643

If that's the only way so they can stay, I say do it. Since I only do mobile homes in parks, they do not have that option. It's not real estate, it's personal property. Problem is, if they thought space rent was low when they bought it, they raise it every year. When they can't afford to pay it, they have to sell their mobile home and find somewhere else to live. So sad...

Mar 11, 2020 05:57 PM
Rainmaker
7,834,939
Roy Kelley
Retired - Gaithersburg, MD

Reverse mortgages can be a quality of life saver for those who are suffering because of a shortage of funds. Many seniors are unable to fill their prescriptions or meet basic needs. 

Mar 11, 2020 12:22 PM
Ambassador
5,228,997
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

I have had some clients use them - and they are right for certain people but, it's not something that I really want to burden my children with down the road.

Mar 11, 2020 10:32 PM