BajaNomad

REVERSE MORTGAGE

BAJA.DESERT.RAT - 1-24-2016 at 01:33 AM

Hola,

baja related only that i would like to think about a reverse mortgage and move to baja.

has anyone got involved with a reverse mortgage and if you did, what are your thoughts...positive or negative.

i would really appreciate your feedback as we are thinking about doing one. i do know it allows a six month time period living in the primary residence and six months doing wherever.

if you want to discuss this privately, please u2u me.

i thank you in advance as i am seriously giving this product serious consideration.

i thank you in advance,

BIEN SALUD, DA RAT

bajabuddha - 1-24-2016 at 01:51 AM

Yes, I did, and recently. Biggest joke I've ever encountered; I was so insulted by my bank, I go in every other month and withdraw every penny I don't need so they don't make a DIME off of me. By the time they took all the fees, inspections and up-front costs that needed to be paid by ME, they offered me a whopping one-third (net) of what I found out four months later that my house was actually worth (I was so incensed I had an appraisal done just to see).

If your house is 100% ship-shape, HUD-qualified, no glitches whatsoever you MIGHT get 65% value out of it after they take a pound of flesh off your derriere with all the fees involved in the process. If there are any, and I mean ANY possible questions to septic, foundation, age, etc.... you're totally screwed with a bunch of inspections by the bank's own people, and the net recovery amount is reduced significantly.

Plus, according to my 'work-up' stats, you get 25% up front, and have to wait a full year, living in residency to get the next 75%, or you can get a pittance-per-month payment for umpteen years instead (hoping of course you die off before you're paid off). The up-side is, your bank CEO will be able to afford his Cabo condo on a golf course.

Other than that, I really don't have an opinion on the matter.

[Edited on 1-24-2016 by bajabuddha]

chippy - 1-24-2016 at 10:15 AM

You would be better off selling and investing your cash or renting it out.:light:
Reverse mort. are a rip off.

grizzlyfsh95 - 1-24-2016 at 10:37 AM

Good advice here. Do not even consider this scam.

BAJA.DESERT.RAT - 1-24-2016 at 05:05 PM

Hola bajabuddha,chippy,grizzlyfsh95,

i thank you for your input. it sure sounds like the gov't is wanting to help seniors without supplying vaseline.

fixing and selling is the next route.

thank you,

BIEN SALUD, DA RAT

Bajahowodd - 1-24-2016 at 06:02 PM

Quote: Originally posted by BAJA.DESERT.RAT  
Hola bajabuddha,chippy,grizzlyfsh95,

i thank you for your input. it sure sounds like the gov't is wanting to help seniors without supplying vaseline.

fixing and selling is the next route.

thank you,

BIEN SALUD, DA RAT



Exactly the way to go.

bajabuddha - 1-24-2016 at 06:34 PM

Rat, they don't even offer KY...... which stands for "Kwit Yelling". :o

Lee - 1-24-2016 at 06:55 PM

Quote: Originally posted by Bajahowodd  
Quote: Originally posted by BAJA.DESERT.RAT  
Hola bajabuddha,chippy,grizzlyfsh95,

i thank you for your input. it sure sounds like the gov't is wanting to help seniors without supplying vaseline.

fixing and selling is the next route.

thank you,

BIEN SALUD, DA RAT



Exactly the way to go.



All fees, appraisals, title searches, recording costs, servicing fees, are negotiable. Big down side to drawing a large sum of money is paying taxes on it. u2u if you want a solid financial planner charging by the hour who will talk with you by phone.

BAJA.DESERT.RAT - 1-24-2016 at 07:11 PM

hola lee,

thank you but at this point in time, it won't be necessary.

BIEN SALUD, DA RAT

Cochi - 1-25-2016 at 09:21 AM

If you have lots of equity, a LOC or equity loan would be best to help you.

BAJA.DESERT.RAT - 1-25-2016 at 01:39 PM

Hola cochi,

i have about $ 800 k in equity but have minimal income to qualify for any loan. that's why the initial interest in reverse mortgages.

other option is a sale.

selling has created so many other questions. where to go, buy or rent, buy a house or condo or trailer, california or ?, etc.

BIEN SALUD, DA RAT

Bob and Susan - 1-25-2016 at 02:23 PM

sell it and take the cash...you cant take it with you
spend it ALL...

ask you kids if they want the money? then rent

if they want a pain in the A** then buy a house

if they want to keep a condo and pay fees forever then buy that

if they want nothing then buy a trailer

Bajahowodd - 1-25-2016 at 04:47 PM

Quote: Originally posted by Bob and Susan  
sell it and take the cash...you cant take it with you
spend it ALL...

ask you kids if they want the money? then rent

if they want a pain in the A** then buy a house

if they want to keep a condo and pay fees forever then buy that

if they want nothing then buy a trailer


This!

Lee - 1-25-2016 at 05:24 PM

Quote: Originally posted by BAJA.DESERT.RAT  
Hola cochi,

i have about $ 800 k in equity but have minimal income to qualify for any loan. that's why the initial interest in reverse mortgages.

other option is a sale.

selling has created so many other questions. where to go, buy or rent, buy a house or condo or trailer, california or ?, etc.

BIEN SALUD, DA RAT


Try RVing. Always reading about people who've sold their home somewhere and started full timing in an RV. Don't like your neighbors, you can drive off. Tons of places to stay and see. RV's won't tie up a lot of money.

bajabuddha - 1-25-2016 at 05:43 PM

Quote: Originally posted by Lee  
Quote: Originally posted by BAJA.DESERT.RAT  
Hola cochi,

i have about $ 800 k in equity but have minimal income to qualify for any loan. that's why the initial interest in reverse mortgages.

other option is a sale.

selling has created so many other questions. where to go, buy or rent, buy a house or condo or trailer, california or ?, etc.

BIEN SALUD, DA RAT


Try RVing. Always reading about people who've sold their home somewhere and started full timing in an RV. Don't like your neighbors, you can drive off. Tons of places to stay and see. RV's won't tie up a lot of money.


DOUBLE-DITTO.

Have done it twice, am on my third home, and it's totally paid for; looked into the reverse mortgage..... to do it again! Gravity sports are great, because if you ain't scared, you ain't havin' fun. Take a friggin' risk.... you can always re-invest, and if you look, something better will come along, I guarantee it. The 'neighbors' thing goes triple-ditto. I'm inches away from outright sale, but my 'man-cave' is just too comfy right now.

NEVER say NEVER. Or is that an oxymarooon?

Cochi - 1-25-2016 at 05:54 PM

I assumed you had no mortgage. If that is the case, go to your banking people and ask how much you qualify for a LOC, home improvement, or equity or what ever they call them now. You should qualify for something substantial based on your 800k equity and some income.(might tell them you plan renting, unless that kills the deal) Take that loan and use it to supplement your lack of cash flow each month and make a minimum payment. In the meantime , go to Baja or where ever and try your new life style out before you buy some major assets. There many great rental deals all over Baja. Rent your house in US on a short term basis.Walk before you run........

AKgringo - 1-25-2016 at 07:18 PM

I would check to see if renting your house out while you are checking things out would cause you to lose the capital gains exemption afforded for the sale of your principal residence.

I am land rich, and cash poor, so I plan on selling my Anchorage residence (no mortgage or liens) and carry the note myself. I won't turn down a reasonable cash offer, but a substantial down payment and monthly income would give me more freedom of action.

I am not very clever in financial affairs, so I will get professional legal advice.

BAJA.DESERT.RAT - 1-25-2016 at 08:29 PM

HOLA AKgringo,

we have in mind taking the $ 500k tax free as we have lived here more than the required two out of the last five year benefit and we have enough equity to take advantage of it if we decide to sell and also take advantage of proposition 60 in california.

i too will get professional advice as to taxes from our cpa.

i thank you for your further input.

BIEN SALUD, DA RAT

SFandH - 1-26-2016 at 02:55 PM

Reverse mortgages are best suited for elderly people, as a last resort, who have out-lived their savings, are out of money, and want to stay in their house. In these cases, a reverse mortgage can save the day. Otherwise, they're not really a good deal.

Bajahowodd - 1-26-2016 at 04:55 PM

Quote: Originally posted by SFandH  
Reverse mortgages are best suited for elderly people, as a last resort, who have out-lived their savings, are out of money, and want to stay in their house. In these cases, a reverse mortgage can save the day. Otherwise, they're not really a good deal.


Correct.

Alm - 1-27-2016 at 01:56 PM

Quote: Originally posted by Bob and Susan  
sell it and take the cash...you cant take it with you
spend it ALL...

Had to cut off the rest, since it doesn't add much, IMO. Spend it all. You can't take anything to the other side.

Re: living in trailer in Baja. I'll talk about Baja because this I know - didn't try it NOB.

I suggest people try this before taking up major steps in this direction. There are pros and cons.

You'll pay lease - can be anywhere from 600 to 4000 $US a year. Your living space will suck, big time. Small, dark, poor heat and sound insulation, poor toilet/bathroom, poor A/C. You'll have to spend some on lot improvements - roof above, fence or privacy screen around, patio etc. The neighbor will be right next to you, keep your fingers crossed that he/she isn't too nosy, cranky, don't have a loud cough, or half a dozen dogs, or is so darn deaf that his TV can be heard through the walls. In the worst case scenario, if it's an offgrid camp, he'll put his generator to where it won't bother "him", which is usually where it will bother "you".

On the bright side, you don't tie your money in real estate, so you have plenty to live on, and don't have to stay where you don't like it. You can move pretty much any time.

BajaMama - 1-27-2016 at 03:51 PM

Suzie Orman says don't do it.

Bajahowodd - 1-27-2016 at 05:44 PM

Quote: Originally posted by BajaMama  
Suzie Orman says don't do it.


Don't do what?:?:

Alm - 1-27-2016 at 06:40 PM

Quote: Originally posted by Bajahowodd  
Quote: Originally posted by BajaMama  
Suzie Orman says don't do it.


Don't do what?:?:

The (self-proclaimed) finance guru was likely talking about the reverse thing. Doesn't qualify to talk about trailering or Baja, I guess.

willardguy - 1-27-2016 at 06:50 PM

wait just a minute, fred thompson, pat boone, robert wagner, and of course the FONZ all claim its the bees knees! and you're gonna take advice from the BajaBlowhards? :lol:

Alm - 1-27-2016 at 09:42 PM

I wouldn't take any advice without thinking it over first.

Govt trying to take advantage of seniors - without vaseline - what a bull-sht. It's your fellow Americans that are trying - those that own banks. Dog eats dog in this great country, what else is new.

Need money and want to keep your home? Bank gives you substantial amount of money, you don't have to repay it, and you keep the home. Yes, you can't sell it anymore. You were not going to (or couldn't) sell it anyway, otherwise you would've done so. Loan or LOC would come with interest and likely with regular monthly payments, works for some people and doesn't for others, it's your choice.

Need money and still need "some" home NOB - then downsize or move to another area.

Don't want to keep your NOB home - then sell.

Have enough retirement income and want to keep your home - then don't sell, jeez...

pauldavidmena - 1-28-2016 at 04:28 PM

My uncle took this route for the usual reasons - the need for quick cash without the hassle of putting the house he had lived in for 40+ years on the market - and ultimately lost the house. The house was neat as a pin, but in need of many an update. An in-law apartment on the top floor was done on the cheap and also drove down the value of the house. Long story short, he didn't get nearly enough cash out of the house to deal with some serious bills, and when he decided to finally sell the house, it was too late. All of the equity had evaporated, and the bank foreclosed. Selling a house is time-consuming and emotionally draining, but a reverse mortgage will ultimately be all that and more.

Bob and Susan - 1-28-2016 at 05:17 PM

Quote: Originally posted by pauldavidmena  

... All of the equity had evaporated, and the bank foreclosed...


if the contract reads...you live in the house till you die...how can the bank foreclose?

there is more to this story that they forgot to tell you

bajabuddha - 1-28-2016 at 05:50 PM

Geezo folks, find out for yourselves. Walk into your own personal Bank, and just ASK... they'll submit a work-up on it to the actual people who are doing the lending (it ain't your local bank, let alone branch.... kinda like an Insurance broker/co. has the Grand Over-seer) and find out for yourselves, THEN talk what you do know now.

It all reminds me of the used car lot in Everytown, America that has the sign/saying/commercial that says, "BAD CREDIT ?? NO CREDIT ???
NO PROBLEM !!! C'MON IN !!!!!!!"

It's legal, but to me, it's a scam, and designed and targeted specifically for older people who want to die in their own homes.

Also look at the amortization situation of what happens to the equity and who-gets-what IF you pass on early or decide to sell, and WHO GETS WHAT. I can answer that right now; the Banks mine the gold, AND YOU GET THE SHAFT.

[Edited on 1-29-2016 by bajabuddha]

deportes - 1-28-2016 at 07:04 PM

Buy a place on the water in Cleralake California. Don't eat the fish but plenty of bargains.

pacificobob - 1-30-2016 at 10:39 AM

Quote: Originally posted by deportes  
Buy a place on the water in Cleralake California. Don't eat the fish but plenty of bargains.[/rquote

thats true. lake county is super undervalued.