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

To: Hawkmoon who wrote (101855)	3/3/2009 11:52:25 AM
From: TH	Read Replies (1) \| Respond to of 110194

Hawk, You have equity, you are old, your house meets the appraisal, you get cash until you die, irrespective if house prices go up or down. Older people that have no retirement (or had a retirement and 2008 happened) are very attracted. Fire away with your questions. My buddy is an absolute expert in this new mortgage monkey. GT TH

To: Hawkmoon who wrote (101855)	3/3/2009 12:45:03 PM
From: SG	Read Replies (2) \| Respond to of 110194

Hawk, As poster said, worth looking into if parents are old, paid off mortgage, need cash but want to stay in home. I got my parents into one in their FL home as market was starting to crash. They are 80, get $1500/mo. tax free for life, can cash out if they need a lump sum. Some shysters but feds regulate. SG

To: Hawkmoon who wrote (101855)	3/3/2009 5:27:02 PM
From: The Ox	Respond to of 110194

My folks sold their home a couple of years ago and have been renting in different parts of the country, trying to decide where to plant themselves for the next 5 to 10 years, while they are both healthy and very active. They are looking to keep 2 homes, one in Texas and one in Calif. They found a nice place recently in Calif, looked into getting a mortgage on it and couldn't. They are both retired, with plenty of money socked away but the bank won't give them a mortgage: since they didn't have "regular income from a job". They both were laughing when they told me this! They said they will probably end up paying cash for the 2 homes and will most likely take out reverse mortgages on them to increase their "cash flow". They just mentioned this to me last night. I haven't really haven't had time to think it through but, initially, it makes a lot of sense. Just fwiw... Any one have a reason why they should not do this? EDIT: is there a downside to taking out a reverse mortgage in a situation like this? TIA Ox