The mortgage company takes your house, no matter how much or little you've withdrawn. Somehow I doubt Fred's estate ended up in the hands of the reverse mortgage company.
I could see it theoretically working for a childless couple, but other than that it just seems like a great big 'fuck you' to your family or else the oldz got scammed (much more likely)
Yeah, it's basically a second mortgage, except without having to deal with qualifying or points (since you don't intend to pay it back),with the big hitch that you are signing away your property to the reverse mortgage company. It's like making a bet that you will live longer than the value of the payments of your property (there was a woman in France who made a reverse mortgage agreement in her 70s, then managed to live to 114) — the deal normally pays out a fixed payment until death, with the payment calculated based on the property value, but if you manage to outlive the value, they have to keep paying. OTOH, if you drop dead within a year, the company gets a real steal. But, either way, yeah, if you have heirs, they get nothing, except maybe not having to support you in your senescence.
In our hearts he'll always be Dipshit McGoo, a term coined here as I recall.
How does a reverse mortgage work after your dead, you gotta wonder.
The mortgage company takes your house, no matter how much or little you've withdrawn. Somehow I doubt Fred's estate ended up in the hands of the reverse mortgage company.
I could see it theoretically working for a childless couple, but other than that it just seems like a great big 'fuck you' to your family or else the oldz got scammed (much more likely)
Yeah, it's basically a second mortgage, except without having to deal with qualifying or points (since you don't intend to pay it back),with the big hitch that you are signing away your property to the reverse mortgage company. It's like making a bet that you will live longer than the value of the payments of your property (there was a woman in France who made a reverse mortgage agreement in her 70s, then managed to live to 114) — the deal normally pays out a fixed payment until death, with the payment calculated based on the property value, but if you manage to outlive the value, they have to keep paying. OTOH, if you drop dead within a year, the company gets a real steal. But, either way, yeah, if you have heirs, they get nothing, except maybe not having to support you in your senescence.