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I just watched a deal on the scam,and they singled out AAG= Fred Thompson. I did have respect for him,but please PEEPS with older parents coach them on being very careful.

Nothing lower than praying on Older Trusting People,and the scum that promote this scam to older trusting retired great people.Ilistened to Don Imus several weeks ago say what a POS Fred Thompson is and the ad campaign is a scam.

So Disgusting if this how you need to make your $'s Buyer be ware.

:hmmm:
 

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Aag

Not only do i do business with AAG but they did a reverse mortgage for my mom on a property she owns! I can tell you they handled the transaction from start to finish and no funny business whtsoever!

I looked over the deal and there were fair and it was a good deal for my mom..
 

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Timing and longevity is the key to my comment.

End of 2006, at the peak of the housing market, my parents wanted a reverse Mtg. Their home was valued at 1,300,000. They were slightly struggling with the $1,600 payment and wanted an easier life. They showed me the reverse Mtg. document and terms. I was against the whole deal, though it was a rip off. They did it anyways. The Mtg. company paid off their first and gave them $180,000 in cash plus an additional lifetime income of about $1750.00 per month. Flash forward 7 years, the house is now underwater by about $175,000 (not including sales comission, etc.) However, they stil get the $1,750.00 every month like clock work.

I feel the lack of stress and a much more fun and active lifestyle is adding years to their lives. Travel, gifts to grandkids, their ability to help other family members has boosted their self asteem. Both of their health is better now, than 7 years ago. In retrospect, it was the best thing they could have ever done!
 

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Reverse Mortgages used to all be funded by private companies and were considered a rip off. Today, most reverse mortgages are done through FHA and are not a scam. They make sense for many people...like the example given above. If you are going to do one, make sure it is an FHA reverse mortgage.

They do have higher closing costs than a forward mortgage, but they can definitely help keep someone in their home for the rest of their years they are capable of living on their own. When the borrower can no longer live in the home (or pass on), they family can sell the house if it still has equity, they can refinance the house into a forward mortgage, or if they are upside down they can just walk away without any consequences.
 

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My girlfriends uncle passed away 3 weeks ago, she is the next of kin. She called the reverse mortgage broker and let them know of his passing. his house was worth $180,000 at the time he signed up and he was $550,000 under water when he passed. he had a check every month and lived comfortable to the end.
 

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Timing and longevity is the key to my comment.

End of 2006, at the peak of the housing market, my parents wanted a reverse Mtg. Their home was valued at 1,300,000. They were slightly struggling with the $1,600 payment and wanted an easier life. They showed me the reverse Mtg. document and terms. I was against the whole deal, though it was a rip off. They did it anyways. The Mtg. company paid off their first and gave them $180,000 in cash plus an additional lifetime income of about $1750.00 per month. Flash forward 7 years, the house is now underwater by about $175,000 (not including sales comission, etc.) However, they stil get the $1,750.00 every month like clock work.

I feel the lack of stress and a much more fun and active lifestyle is adding years to their lives. Travel, gifts to grandkids, their ability to help other family members has boosted their self asteem. Both of their health is better now, than 7 years ago. In retrospect, it was the best thing they could have ever done!
Don't understand how you can pull income from an asset that has no market equity...especially if your the lender...:confused:
 

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My girlfriends uncle passed away 3 weeks ago, she is the next of kin. She called the reverse mortgage broker and let them know of his passing. his house was worth $180,000 at the time he signed up and he was $550,000 under water when he passed. he had a check every month and lived comfortable to the end.
So who's liable for the $550,000...next of kin?
 

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Don't understand how you can pull income from an asset that has no market equity...especially if your the lender...:confused:
Thats the beauty of these loans. They do an appraisel at the time of the loan, make the deal, and it's etched in stone, regardless of where the housing prices. Of course, should housing go up, you can get a new appraisel and beging to recieve moe money. Be cause they are paying you, there is no credit check, no income requirement, nada,nothing. Loan is based on the equity at the time of loan and the monthly incom is guaranteed by the federal Govt.

Ther was equity at the time the loan was done, but then the market crashed. Tough luck for the lender, they have to pay monthly untill both the Husband and Wife are dead, regardless of equity. It is all figured on mortalitly tables. Average lifespan is say 76 for men. My mother and father did the reverse Mtg. when they were 77. According to mortality tables they are expired or soon to be, so they give them more money each month. They are now about 85, and none of their parents died before 94. This lender has to keep paying them the 1750 per month till BOTH die. The 1750 keeps being tagged to the loan and intrest accrues on all of it. If housing doubles in the next 10 years or before they die, the the lender gets all his money with interest upon interest. If my parents die today, the lender screws the pooch. The lender keeps it on the books as a good loan untill the day of reconning

This is a special Govt. guaranteed loan program, only for seniors 65+ that have equity in homes they occupy. If they move or sell the house, all bets are off and they would have to come up with the negative on the loan. Better to stay in the free house and nice income. Does not leave much for me when they go :-(
 

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Thats the beauty of these loans. They do an appraisel at the time of the loan, make the deal, and it's etched in stone, regardless of where the housing prices. Of course, should housing go up, you can get a new appraisel and beging to recieve moe money. Be cause they are paying you, there is no credit check, no income requirement, nada,nothing. Loan is based on the equity at the time of loan and the monthly incom is guaranteed by the federal Govt.

Ther was equity at the time the loan was done, but then the market crashed. Tough luck for the lender, they have to pay monthly untill both the Husband and Wife are dead, regardless of equity. It is all figured on mortalitly tables. Average lifespan is say 76 for men. My mother and father did the reverse Mtg. when they were 77. According to mortality tables they are expired or soon to be, so they give them more money each month. They are now about 85, and none of their parents died before 94. This lender has to keep paying them the 1750 per month till BOTH die. The 1750 keeps being tagged to the loan and intrest accrues on all of it. If housing doubles in the next 10 years or before they die, the the lender gets all his money with interest upon interest. If my parents die today, the lender screws the pooch. The lender keeps it on the books as a good loan untill the day of reconning

This is a special Govt. guaranteed loan program, only for seniors 65+ that have equity in homes they occupy. If they move or sell the house, all bets are off and they would have to come up with the negative on the loan. Better to stay in the free house and nice income. Does not leave much for me when they go :-(
Wow...where do I sign?

We're gettin' ready to retire full-time in a few years (70) and have approx. $300k in equity in our primary residence.
Could be a good way to fund our "Golden Years"...:cool:
 

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Interesting...it's a loan / line of credit against available equity:

The loan comes due when the borrower dies, sells the house, or moves out of the house for more than 12 consecutive months. Once the mortgage comes due, the borrower or heirs of the estate have an option to refinance the home and keep it, sell the home and cash out any remaining equity, or turn the home over to the lender.

Upon borrower death, heirs are granted six months to make this decision. After a maturity event occurs, the borrower or the estate must pay off the mortgage balance in 90 days; however, three additional 90-day extensions may be granted by the loan servicing company.

If the property is turned over to the lender, the borrower or the heirs have no more claim to the property or equity in the property.

The lender has recourse against the property, but not against the borrower personally and not against the borrower's heirs.


Don't see a lender funding at 5x equity/value though...
 

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Not really a line of credit. A lineof credit has a specified max amount and of course you have to make payments on a line of credit. They can also cancel your line of credit if your home value goes down. reverse Mtg. pays the check every month untill you die, no payments, no equity requirements (after the initial appraisel). Home goes up in value over the outstanding balance your or your kids get the equity. If you or your wife live 30 more years and your equity does not cover the outstanding balance, the lender eats it. Get a reverse Mtg. that is guaranteed by the Govt. Even if your home were to go to zero value, as long as you live in it, they have to keep sending you or your wife the check every.

The beauty of when my parents did it, property values were sky high and they locked in. Age has a lot to do with how much you'll get. If you have 300,000 equity, at 62 you may only get $500 a month at 65 more, at 70 even more, at 75 even more. You have the option when you sign , to take a lump sum and they pay the mtg. till you die, or a chunk of cash and monthly income as my parents did. Or just a bigger monthly check till you die. Your choice. Equity is also figured as a % of the worth of the house. If you have $300.000 equity on a 2,300,000 home with a 2 Mill Mtg. you're not getting the reverse Mtg. If you have 300Kequity on a home worth 375Kor 400K then you're in there. I believe they cap at about 60% LTV. when they committ to life time monthly income and never having to pay your first.

The loans that are uder water is because of the devaluation of the real estate that took plae AFTER the lender committed. My parents are so far underwater, but they could care less. That checkjust keeps coming and the home goes further and further under.
 

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These loans have higher % rates and more points than usual loans. These interest rates and points get tagged on to the home, no cash out of pocket. This is not a good type loan for a couple in their 30's.. But if you are 70 and by looking at your parents and relatives, you think you're going to beat the 76 date of expiration, then you can score big here.

I'm gonna do it in a few years. Our home payment is only $900, but if something happens to me, don't want my wife to have issues.
 

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Wow...where do I sign?

We're gettin' ready to retire full-time in a few years (70) and have approx. $300k in equity in our primary residence.
Could be a good way to fund our "Golden Years"...:cool:
They will only lend to about 45%-50% loan to value at the time the loan is funded (i can't remember the exact LTV). So if you owe $300K and the house is worth $600K, you could probably get rid of your house payment, but not get any cash out. They try to set it up so that the home won't go upside down. However with the housing crash, many homes did go upside down. It is all a statistical numbers game for the lender. In a normal market, most of the homes will not be upside down at the time the borrower passes on or can no longer live in the home.
 

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Hopefully these loans are still around when we need them..... My place will be paid off by then, but it is nice to know that if necessary there is the option to tap into the equity and not have to sell it.
 

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Isn't it kinda like life insurance isn't it, it is only profitable for a bank if the owners fit the algorithm. I'd rather sell my expensive California home, buy a mansion in Texas and invest the rest...probably buy a couple or few rentals to provide my return on investment. I'd rather see my money go to my children or other family members than some bankers bonus. Just me...
 
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