How easily one can fall for enticing commercials/info-mercials and/or advertisements. These are done so engagingly it makes a lot of sense to go for the pitch……….. Does it?
Talk to others first in this regard. “Look before you leap.” Read all about it first. Ask around – go “on-line”. Be 100% sure before embarking on a road of no return.
Allow me to share a true story with you:- I had a friend who lived in an adult condo complex. She bought her condo and was quite thrilled to have a place of her own again, having left her family home in Chicago to live in sunny Florida. She owned 3 cats. Soon the Condo association started bugging her with regards to her cats, since they had changed the rules to outlaw the ownership of pets. The alternative was to put her pets to sleep or move. She found a condo a few blocks from where she lived, which was closer to the hospital, stores and the church she attended and made a bid for it.
Not having much but her social security, she sold her condo, used the differrence she had earned from the sale to purchase the new condo. Still, the amount she had on hand was not enough, so she opted for a reverse mortgage. This transaction was done with alacrity, speed, diplomacy and very good manners. – The “deed ” was done! – She loved her new place. Alas, after 2 years she became ill and was in and out of hospital, rehabs. etc, She died last year February 2008. It is February 2009 to the date – and the Reverse mortgage company is still begging for $103,000.00 for an advance of $25,000.00 from her Personal Representative. Is this ridiculous or what?
Her PR did so much after her death – for not a dime for herself. Besides, funeral arrangements etc, she had to put the condo up for sale. Due to our sad economic situation and the reverse mortgage, it became impossible to sell for a decent price. The Reverse Mortgage companies gives one only a few months in which to sell before they foreclose. Guess what? The charges they trumped up was 4x (four times) more than what she had received in the first place. BE WARNED – read the fine print. Yes, the fine print is very small, so bring out the magnifying glasses and read pages long, – but take a week or two to read. Do not be cajoled or rushed into making a deal you can ill afford.
Yes, you receive cash out for whatever your needs/requirements may be. Is it worth it to leave a headache for family, friends or PR’s to deal with? Reverse mortgage is no different to the mortgage deals Americans are making and have made these past years. The Counties and States can barely keep up with the growth of foreclosed Condos, townhomes and houses. Even more, how many people today want to purchase a condo that has been around for years, when there are so many “up to date” ones being built? If money is needed, go to your bank and work out a deal. Ask family members or friends to help. Would it be so bad to sell and move in with the children? If your sons and daughters have children, they can be rest-assured that the “baby sitter” would not abuse their offspring. They can even get a little financial monthly income as well. Think about it – mull it over …and over …and over again
So – ARE REVERSE MORTGAGES OK? MAYBE SOMEONE OUT THERE HAS HAD A BETTER DEAL!