Elderly parent rifinancing

Richard

Richard

Final Approach
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Ack...city life
Mother is looking to refi. A sit-down meeting with Milennium Financial seems to suggest a reverse mortgage. I can't quite tell. The "mortgage manager" seems untrustworthy.

What would a reverse mort look like when talkikng across the table????
 
I know mom has a great credit score. Anecdotal is the plethora of unsolicited calls for her to refi with them. Husband passed away but is still on title.

This dude, an O-4 in the Reserves, on a path to JAG, seems to be pushing. Forget the TV commercials, what would a RM look like when pushed acossed the table?
 
More info needed. Plus the usual warnings of, we're not finanicial managers and any advice given here should be heeded with appropriate caution.

What is the reason she needs to re-finance?

Is it because she is not able to afford the house payments and needs to extend out the remaining debt and reduce the monthly bill?

Or is the house 100% paid for and she needs access the the equity?


IMHO, reverse mortgages stink and are a new method to prey upon the elderly in these uncertain times when pension plans are shakey, and investment portfolios are not performing as well as they did.
 
In the interest of disclosure...in the few months before he passed, dad refinanced his primary residence to enable my sister to purchase a new home for cash.

This left mom indebted to a larger mortgage payment. In the mean time, due to disability, sister has been unable to secure a stable income. Therefore, mom (bless her heart) has been making payments on all of sister's expenses. Mom has pursued refi due to the lesser rates available and to offset payments on sister's expenses.
 
Richard, STOP do not pass go! A full financial evaluation is appropraite prior to entering into a reverse mortgage. I would be concerned that mom is not going to see a penny out of the reverse mortgage but rather it will be used to pay off a current mortgage. That may be appropraite but given the situation with your sister there is so much more involved here.

Mom should do herself a favor and spend the money to consult with an elder law attorney. There are a lot of issues at play here including whether it is a good idea for mom to be bailing out sister. I've seen elderly parents end up near pennieless bailing out their kids when it would be better financially for all involved for the child to seek bankruptcy protection.

I AM NOT SUGGESTING THAT THIS IS THE CASE FOR YOUR MOM AND SISTER! I am just relating experience. IIRC mom lives in Cali, a very strange place indeed when it comes to the law. Have mom consult with an elderlaw attorney who can best advise her as to whats in her best interest.
 
Adam, thank you for that. As always, I vaule your comments.

It appears there are two issues here, that latter which yu have addressed and of which I share your concern.

The primary issue is mom entering into a contract which APPEARS to b a reverse mortgage. That is to say, it is difficult to discern that what this guy is saying is or isn't a RM.

When it comes to money, I don't trust anyone. This no matter what their background or CV. (This guy represents himself as a "O-4 Major, hopefully to become LT Col in the JAG, and a Christian man". Granted, these professions of standing hold a lot of water with mom but I found it odd for him to even speak of his personal qualifications...when his only duty was to qualify mom for a refi. Suffice to say my hackles were raised.

I did check him out online. I had his billet, his CO, his DRE number. He passed muster. But I wonder, what did I miss? What could I do to 'save' mom? When it comes to money I am of the tin foil hat brigade.


Mom is no dummy. But mom is 79 yrs old. The world has changed. Today I had the painful experience of watching her open her e-mail. What dangers lurk for those of a past generation.
 
And I thought myself woefully unprepared for what I would say a huckster. Today it may be mom, tomorrow it may be I.

I was unprepared for him to several times state that he is a Major and has drilled with the USMC and holds a J.D. and declined an attachment to a unit bound for overseas in hopes for obtaining his goal of Lt Col in JAG. How would I even be prepared for that ****?

My bald faced question of if he was purposely assigned to mom (widow of career USMC) went unanswered.
 
Keep in mind that the banks would like to control as much Real Estate as possible before hyper-inflation kicks in, and that if it is advertised a lot, someone is planning on making a big return on that advertising investment. Are you seeing advertisements for RM's lately that you never saw before just a few years ago? That should be a clue...
 
Richard,

John had a recent thread about this very topic recently:

http://www.pilotsofamerica.com/forum/showthread.php?t=45409

Was this your mom's idea, or is she being sold on it? My philosophy is this: "Don’t buy what someone wants to sell to you. Buy what you have researched, and what you think has value."

Richard said:
And I thought myself woefully unprepared for what I would say a huckster. Today it may be mom, tomorrow it may be I.

I was unprepared for him to several times state that he is a Major and has drilled with the USMC and holds a J.D. and declined an attachment to a unit bound for overseas in hopes for obtaining his goal of Lt Col in JAG. How would I even be prepared for that ****?

My bald faced question of if he was purposely assigned to mom (widow of career USMC) went unanswered.
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If all your questions haven't been answered satisfactorily, then the answer is, "NFW!"
 
P.S. If your mom has an excellent credit score and there's enough equity in the house, then she should be able to get a straight refinance from any reputable mortgage lender that you search out. No reverse mortgage needed. Tell this guy to take all those letters before and after his name and stick 'em.
 
Negative on the reverse mortgage. Negative on the reverse mortgage ads.


WRT reverse mortgage, my Q revolved around what would this look like when a 'mortgage consultant" is in your home, across the table, what should one expect?

Robt Wagner or Fred Thompson hawking RM on the telly is wholly different. A sit down with one of these folks may leave you thinking you signed for a different animal.

Thankfully mom did listen to me at the end. It turned out that this company folded $9,000 into the equity loan for which the VA charges $900.

Sumbitch, getting parents to listen to their kids.....
 
rpadula said:
P.S. If your mom has an excellent credit score and there's enough equity in the house, then she should be able to get a straight refinance from any reputable mortgage lender that you search out. No reverse mortgage needed. Tell this guy to take all those letters before and after his name and stick 'em.
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like.
 
Richard said:
Sumbitch, getting parents to listen to their kids.....
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There ya go,,,,,, When your Mom bails your sister out, your sister learns nothing, pizzesess away the money, now both are broke.

never put your house in jeopardy, For your kids, they have more time to re-coupe than you do.
 
Tom-D said:
There ya go,,,,,, When your Mom bails your sister out, your sister learns nothing, pizzesess away the money, now both are broke.

never put your house in jeopardy, For your kids, they have more time to re-coupe than you do.
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Damn straight, Tom. But hey I am just the son/brother. My opinion is better kept to myself.

Except I feel the fidicuiary duty to speak up. Mom! What the hell????
 
Richard said:
This was entirely mom's idea to better afford sister's expenses.

We think alike. I followed him to his car. I shook his hand and thanked him for his service.
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Richard, Have to say I'm glad this issue seems to have passed. The way to deal with this is by your sis seeking help from legal sources not depleting moms assets.
 
Coming in late here but -- I've never had a financial pro that tried to sell me something at my house ever be something worth buying.

If they're selling something worth buying, people are coming to them... at their office.

Not the other way around.
 
Richard said:
WRT reverse mortgage, my Q revolved around what would this look like when a 'mortgage consultant" is in your home, across the table, what should one expect?
Click to expand...
http://www.ftc.gov/bcp/edu/pubs/consumer/homes/rea13.shtm

"In a “regular” mortgage, you make monthly payments to the lender. In a “reverse” mortgage, you receive money from the lender, and generally don’t have to pay it back for as long as you live in your home. The loan is repaid when you die, sell your home, or when your home is no longer your primary residence. "
 
Richard said:
Negative on the reverse mortgage. Negative on the reverse mortgage ads.


WRT reverse mortgage, my Q revolved around what would this look like when a 'mortgage consultant" is in your home, across the table, what should one expect?

Robt Wagner or Fred Thompson hawking RM on the telly is wholly different. A sit down with one of these folks may leave you thinking you signed for a different animal.

Thankfully mom did listen to me at the end. It turned out that this company folded $9,000 into the equity loan for which the VA charges $900.

Sumbitch, getting parents to listen to their kids.....
Click to expand...

There is only one thing being sold via cold call that is ever a good deal for the buyer vs. the seller, and that is girl scout cookies. And even that my cardiologist might disagree to.
 
AdamZ said:
Mom should do herself a favor and spend the money to consult with an elder law attorney.
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+1

Richard, please, please take this advice and go to an attorney. The equity in your sister's house needs to be protected from her creditors. It sounds like there should be a mortgage on your sister's house in favor of your mom to secure your sister's obligation to repay the $$ advanced by your dad.
 
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