Ok heres the deal about 3 yrs ago my dad had a quadruple bipass and no insurance and like the good American he is payed,most of it off with the sale of his house ,and bought a small condo.his income from retirement is $1200 month , he owns a condo in South Beach Fl,that runs him $900 month(taxes& assessment),this condo is paid off but wont sell since nobody is buying,he has a small mortgage on the condo here in Chicago,,(not selling either) and neither is renting... so he is not surviving...he has been loooking into a reverse mortgage ,,is this a good idea....any help would be great..
Reverse Mortgage/ Finacial gurus
- Thread starter BandAid
- Start date
Welcome!
By registering with us, you'll be able to discuss, share and private message with other members of our community.
V8Assassin
100mi away ready 2 strike
- Joined
- Jun 6, 2007
- Messages
- 5,010
Why is neither renting? Location, or price?
yes, the fees are steep. but I think the reason why is what ever money per month they promise you, you get that amount until you die. Even if you pull out more money than your house is worth. I know someone that just went through this. Shop around though. the fees vary greatly.
Well the one here in Chicago is their primary residence(for sale) market suxs..
the other is located in South Beach across the street from the ocean 1 bedroom wants $1100 month which i hear is the going rate..he is lowering the rent to $1000 month,,, i told him he should ebay weeks like a time share,then have someone clean it on Sundays,could prolly get $800 a week. yes the condo board will be pissed but F them,their all stealing $$$ anyhow..
thanks for any imput. Dennis
My grandmother took out a reverse mortgage on her house as a source of income. When she died my aunt (who the house was willed to) had to pay back what they paid my grandmother to get the house to her. Not sure how much she had to pay, but I do know that due to the poor economy she ended up selling the house cheap and only made a $12k profit....and mind you this was a Florida home 5 minutes from West Palm Beach. Not saying that's what would happen to you but just my 2 cents.
. I'd sell one of the property's. RE market is off BUT some stuff is still selling.
Pronto
No amount of evidence will ever persuade an idiot.
- Joined
- Dec 9, 2002
- Messages
- 16,804
You should buy one of the properties and a pay him back. You can set the payment to something you can afford and he can live in either with the extra money a month. When he passes away he can have the mortgage to you eliminated and you'll inherit them.
- Joined
- Mar 1, 2005
- Messages
- 25,758
There are several ways to look at this. You can find some good deals out there on R/M's. You have to consider inheritence taxes etc... if you plan to help him keep it and he leave it to you. If you think you may want it one day I agree with above you let him sale it to you "owner fininace it" you could use it as a tax right off to. Depending on his age he can have a certain amount of non taxable income, so the interest wouldn't hurt him. This way you beat the death tax at the time of his passing...
If you simply don't really want the property one day, get the RM and hope he lives long and rent that puppy out:biggrin:
If you simply don't really want the property one day, get the RM and hope he lives long and rent that puppy out:biggrin:
Good info guys..
the Condo in Florida ,I WOULD NEVER keep,he has had so many special assesmnets in the last few yrs and bad property management company's steal money ,he pays $600 in assesments and 300 tax for a 1 bedroom,,nobody want that kinda bill and then a mortgage.. he and i have the same name ,maybe he can live for ever thru me
with a reverse mortgage,,also he told me it was a lump some they were giving him.he prolly wont do the RM thing..
the Condo in Florida ,I WOULD NEVER keep,he has had so many special assesmnets in the last few yrs and bad property management company's steal money ,he pays $600 in assesments and 300 tax for a 1 bedroom,,nobody want that kinda bill and then a mortgage.. he and i have the same name ,maybe he can live for ever thru me
with a reverse mortgage,,also he told me it was a lump some they were giving him.he prolly wont do the RM thing..Yes thats every month,but that includes water,gas ,electric,cable and parking..so no bills to pay..every month ???
V8Assassin
100mi away ready 2 strike
- Joined
- Jun 6, 2007
- Messages
- 5,010
Some of these so called developments are a total scam, you pay and pay, but they offer no services. He is getting some of his bills paid with the 900/month, but that is steep!! If you could knock down the rent to 800, you could still stipulate a monthly rate for bills such as cable, water, ect....
It's a tough situation, but I believe it is better to always hold onto real assets like property. The market is not getting any better, so selling is probably not much of an option. In the end, run whatever type of cost/benefit you can put together at it including all cash flow and liabilites, and then include such things as future perceived value, sentimental attachment and whatever intangibles mean something to you, especially convience and maintainence. Decide based on a rational conclusion that benefits the family the most.
