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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Crusader who wrote (42461)	9/28/2005 11:50:02 AM
From: benwood	Read Replies (1) \| Respond to of 110194

Actually, they don't have to live anywhere. They can sell and live in a tow-behind trailer like my crazy but poor parents intend to do, or they can double up in a house. Ever see a house near a campus with roommates living in walk in closets and so forth? There are many many ways to cut living expenses dramatically. In a real estate gloom and doom environment, I'd expect reverse mortgages either to be yanked from the table or for something to be put into the contract to mitigate risk, either a clause or simply a lower valuation basis. Since many would rather own than reverse mortgage (imo) I think they are more likely to downsize or relocate, thus serving to produce a reverse bubble -- all the hot markets of the past 20 years can become the bane of the twenty years starting with boomer retirements.

To: Crusader who wrote (42461)	9/28/2005 12:00:10 PM
From: TH	Read Replies (1) \| Respond to of 110194

Crusader, A friend only does reverse mortgages, and to my surprise, it is not easy to qualify for one. My friend ignores 99% of all appraisals, and sends his own people. He must use comps within 1 mile and no more than 1 year old. HIs business is BOOMING like never before. His phone rings non-stop, all day, every day. I was very surprised to learn that the government protects the (elderly) homeowner from the risk of the loan getting upside down. The entire reverse mortgage concept is predicated on real estate (on average) always going up. I guess at some point, you, me, and the other joe-taxpayer will be bailing out the mess from reverse mortgages too. GT TH