Mortgage for my mom?

[Dzone]

I wish I was a little more learned on mortgages, but I am not at the moment.
Heres the situation- When my dad died, my mom gave away most of her money to the kids. We were under the impression that she had a lot more money in reserve. She didn't, except for a house that is fully paid off. My nephew and his friends are now renting the house from her. The problem is that I am watching my mom scraping by every month financially, living in a retirement home. She cant afford to go shopping at the mall, etc etc. She can barely afford to buy birthday gifts for her grandkids. I know there is such a thing as a reverse mortgage. I see no reason that she should not be living off the equity in that house. I want my mom to have all that money and do whatever she wants with it while she is still with us. Whats the point in waiting until she is gone and then dividing up the equity between the kids? Screw that. What is the best way to go to get money out of the house for her?
Thanks in advance for any insight.

[alluprbdy]

Re: Mortgage for my mom?

I use to do mortgages years ago, I suggest you call a local mortgage broker or a lender like Wells Fargo and tell them you are interested in a reverse mortgage. They will do an appraisal and decide what value they are willing to put on the house and they will cut her a check every month. Pretty simple idea and as long as she has decent equity itl help. I never did one since they arent all that common. Good Luck!

[FUZO]

Re: Mortgage for my mom?

what he said ^

[tn94z]

Re: Mortgage for my mom?

My dad is actually contemplating this as well. He is self employed and has had some medical issues that have eaten up most of his money (along with bad luck in the winters with work being really slow). He almost lost everything and we were talking and he asked if he should file bankruptcy. I told him to do whatever was best for HIM. Filing at least allowed him to keep his house and land that he had worked so hard for.

Now he is talking about the reverse mortgage. He asked what I thought about him not being able to leave me the house and land. I told him do not worry about that. The important thing is that you can enjoy the rest of your life however you want. I don't expect any kind of inheritance. Many people will say that reverse mortgages are bad....and they do have the downfalls from the limited reading I have done, but it's mainly just not having anything to leave to your kids.

But, you would have the option of buying the house when that time comes if that was something you were interested in keeping.

A better option might be to just sell the house outright and let her have the money, since it is paid off. If that were an option, selling would be the best way to go IMO.

[trip]

Re: Mortgage for my mom?

u could take out a small second on the house

isn't she already getting a check from rent

u could sell house and buy some bonds

how old is she, do you have a budget

how do u pay for retirement homes, those aren't cheap

can she live with one of u