Is There Life After UPS?

[Upslady20]

For me when I reach retirement in 8 years it will be selling my home and leaving Florida.. I need to find an area of the United States that does not get too cold and has decent taxation... Florida is tough on the retirement when they get 10 thousand a year for my property tax it was 12 and the way things are going it will be going back up. And with the insurance running around 6 thousand I would not be able to retire. 16 thousand to walk on the property before turning on a light in the house... house for sale as soon as the finish line is in sight...

 

[dannyboy]

Reverse mortage is a real rip for most people. Like TK said, only in hardship cases.

Problem is that it is being sold to the elderly as something normal to do, every body does it.

Nothing like using up your assets for nothing.

d

 

[UPS Lifer]

I think this is a great program for some folks (not all)!

There are a lot of stipulations for reverse mortgages. I think you have to be at least 65 to qualify. If you don't have anyone to leave your assets to, it may be an option. Also, for those seniors that are going in the hole every month and don't know how to make ends meet, it may be just the salvation they are looking for. If you take the equity out and, eliminate the house payment and invest the rest - This could be a great way to enjoy the rest of your life without money worries. These seniors may even be able to go on that once in a lifetime trip they never would have been able to afford.

Contrary to popular belief - you can pay off the loan and get out of the reverse mortgage if you set the loan up right.

You can't take the home with you to the next life!

 

[moreluck]

What if their house can't sell for it''s worth.....does that leave the kids with your debt? So many real estate markets have fallen sharply.........some by 50%.

 

[UpstateNYUPSer(Ret)]

As Lifer said, reverse mortgages are ideal for those who have no one to pass their assets along to. I have not looked in to them in depth as I am only 47 but I do know that the closing costs on them are much higher proportionately than conventional mortgages. I would much rather enjoy my retirement years rather than scrimping and saving only to have spend down all of my assets to pay for my nursing home care. Of course, there is a way around that as well but that is a topic for another thread.

 

[moreluck]

I know a lot of charitable groups make the pitch on reverse mortgages for you to give them the $$$.

 

[UPS Lifer]

I know a lot of charitable groups make the pitch on reverse mortgages for you to give them the $$$.

It seems to me that if someone has to revert to a reverse mortgage they would need to money to live. It should be the charity that is helping those folks!

Which brings up a good point on the reverse mortgages that were set up prior to the downturn in the housing market. The whole point to the lender is to get the home after you die. I will bet that some of the lenders are taking a real bath on reverse mortgages right now. The house could be worth less the the amount of the money that was lent out!

Good deal for the homeowner - bad deal for the lender!