Reply to Has anyone figured out an alternative to a reverse mortgage for a cash strapped parent?

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Reply to "Has anyone figured out an alternative to a reverse mortgage for a cash strapped parent?"

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]Why wouldn't he do a reverse mortgage?[/quote]

Fees and interest are higher than normal mortgages, and the interest keeps compounding even if you don’t take more principle out. 10% end in foreclosure. [/quote]

How can they foreclose though? I thought that a reverse mortgage allows him to live there until he dies or moves out, which it seems he doesn't intend to do, so he'd be able to live there for as long as he can live independently, it just doesn't leave any inheritance to his kids. That seems like a more reasonable decision for the dad than liquidating and spending all his assets that he needs to live on for the rest of his life.[/quote]

The interest keeps accruing (reducing equity even if you don’t take more funds out) and once equity drops below a certain amount they start doing home inspections and can evict you for not properly maintaining the home. [/quote]

Thanks, never heard of that! That's crazy.[/quote]

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