Topic: "House for bike"

[Shenanigans]

So what do you guys make of this?


http://phoenix.craigslist.org/wvl/mcy/1931868532.html

[seaweb11]

Not sure, but I sent him an email

[Kframe]

It's an interesting listing for sure.  Actually kind of a sad story, but I can see how it makes sense to the guy.  
If I had the money or the GL I might do it just to help the guy out (if he's on the up and up).
 
-K

[seaweb11]

Proly needs cash for medical expenses

[scottly]

My Scam-o-meter hit 8.5 when I read this. Why doesn't he get a reverse mortgage?

[seaweb11]

Because he owes $59,000 on a house that might sell to a drunken sailor for $65,000.00

His house would have been worth aprox $200,000.00 in 2006.  Not now

Here is a link to real estate in the area for a graph of how far the value has fallen for these people.



http://www.zillow.com/local-info/AZ-85306-home-value/r_94888/#metric=mt%3D34%26dt%3D1%26tp%3D5%26rt%3D7%26r%3D94888%26el%3D0

[Kframe]

It really sucks for people (old folks like our parents) that took out reverse mortgages right before the economy tanked (not always for fun, but more likely to pay medical or LTC bills).  Some of them now owe $50K-$100K notes on homes worth $40K.
It's bad #$%*.
-K

[bender01]

 What would happen if he had another stroke and got put in a state home? Wouldnt the state come after the house? I guess not if you "owned it" and he "rented it".. He could recieve medical care and not get anyone else into debt. He also wouldnt lose his home to vultures after his huge medical costs. Very creative.I wont forget this idea! Make sure he doesnt craigs list everything in the house! Like the floor for example. Hopefully hes not an Illegal imigrant living here since the early 70s looking to coast his way out on us too

[Kframe]

That's what I'm saying.  I credit the guy if this is the real deal, way to put your equity to work for you. 
Still, sounds like this is a lonely aging unhealthy guy, that probably worked pretty hard to get what he's got, and was dealt a tough hand in life (wife and son died tragically). 
As a nurse, hell, as a fellow human, I feel bad for the guy. 
-K

[seaweb11]

On 9/1/10, I wrote:
What would occur if you fell behind in your mortgage payments.

His answer:
fair question.
our contract would include protection for you....after like two missed
payments, youd own house.



http://maps.google.com/maps?f=q&source=s_q&hl=en&geocode=&q=15443+North+66+Avenue,+Glendale,+AZ+85306,+United+States&sll=37.0625,-95.677068&sspn=38.690438,105.556641&ie=UTF8&hq=&hnear=15443+N+66th+Ave,+Glendale,+Maricopa,+Arizona+85306&ll=33.626774,-112.19891&spn=0.000622,0.001611&t=h&z=20&iwloc=A

[seaweb11]

http://www.kpho.com/houseandhome/23071044/detail.html 

[scottly]

On 9/1/10, I wrote:
What would occur if you fell behind in your mortgage payments.

His answer:
fair question.
our contract would include protection for you....after like two missed
payments, youd own house.

Yeah, you would own it AFTER you paid the mortgage holder $60K...

[SD750F]

The original Craigslist post has been flagged...

[tramp]

reverse mortgage time

[Bob Wessner]

reverse mortgage time

I'm sure they have their place, but in the past two years I've seen a sudden increase in the advertising of these which would puts me on alert. I wouldn't consider entering into one without independent legal and financial advice.

[tramp]

i myself would never get one
but if you need money and can't sell your house for whats it's worth

[hotpocket]

http://www.kpho.com/houseandhome/23071044/detail.html 

this article wasn't very aptly named.

[BobbyR]

reverse mortgage time

I'm sure they have their place, but in the past two years I've seen a sudden increase in the advertising of these which would puts me on alert. I wouldn't consider entering into one without independent legal and financial advice.

I was in the loan business for 2 years while I was sorting out post retirement new career goals. The reverse Mortgage is a good product, not to be confused with the other flaky crap that was being hustled. If you have equity or a paid off mortgage you draw monthly payments until you pass away. For example my parents home is paid off, the old man paid $18K in 1963 for the house, in today's market on a short sale he would get $500K since it is a very exclusive town. So, he could reverse Mortgage the place for $500K and receive monthly payments. 

Now, the question has always been, let's assume they only drew down $200K and he passed away,what happens to the balance. The answer is the balance becomes part of his Estate.

Like any other financial instrument it is best to have a knowledgeable third party review the particular terms and conditions. In my time in the business, I found people take very little time understanding what they are getting into. Many times they just wanted something for nothing, now they are finding out they are getting nothing for something.

Today I was shocked at how many For Sale signs just popped up on an road I travel regularly. More people going under.

[seaweb11]

Good info Bobby. Can I go on a bit?

What would happen if your Dad pulled $200,00.00 over the years from that $500,000.00 and the value of the house at some time had dropped to $200,000.00?
I know......could never happen, but what if it did? What safety catch would stop that from occurring.

The guy here has a house that was worth $200,00.00 just a few years ago. Now it's worth $75,000 maybe, with a $60,000.00 mortgage.
He does not seem to have a reverse at this point and he's still hooped.

US Real Estate baffles me   My sister has a mortgage that she only pays interest on?  Her house in Tahoe did a $$.00 dive

[Stev-o]

 My sister has a mortgage that she only pays interest on?  Her house in Tahoe did a $$.00 dive

Paying interst onl is not a good thing as you are not reducing the principal.

Not all of US has had real estate values nosedive, CA, AZ & FL have been the worse. Tahoe is a great area.

[BobbyR]

Good info Bobby. Can I go on a bit?

What would happen if your Dad pulled $200,00.00 over the years from that $500,000.00 and the value of the house at some time had dropped to $200,000.00?
I know......could never happen, but what if it did? What safety catch would stop that from occurring.

The guy here has a house that was worth $200,00.00 just a few years ago. Now it's worth $75,000 maybe, with a $60,000.00 mortgage.
He does not seem to have a reverse at this point and he's still hooped.

US Real Estate baffles me   My sister has a mortgage that she only pays interest on?  Her house in Tahoe did a $$.00 dive

This is from the FHA website

If the sales proceeds are insufficient to pay the amount owed, FHA will pay the lender the amount of the shortfall. FHA collects an insurance premium from all borrowers to provide this coverage.  http://www.hud.gov/offices/hsg/sfh/hecm/hecmabou.cfm

If I read you right your sister have an interest only loan. I hate to say this, that is a ticking timebomb. These are the types of loans that should never have been allowed. US Real Estate was very simple till they made your home a commodity.

[seaweb11]

Thanks Bobby.

Yes, I do get the issue with an interest only payment. I agree.
 
As Canadians we can't write of mortgages, so we tend to have a different outlook on the "todays value" than down south.
We tend to pay it off as fast as we can.

[BobbyR]

Thanks Bobby.

Yes, I do get the issue with an interest only payment. I agree.
 
As Canadians we can't write of mortgages, so we tend to have a different outlook on the "todays value" than down south.
We tend to pay it off as fast as we can.

The smart ones here do too. I paid mine off a few years before I retired from my 30 year job, and it gave me freedom. People ask what my house it worth and I tell them i don;t know, I have not sold it yet. This market will sort itself out and many will not be happy. 

[Terry in Australia]

That's incredible, some of those houses in Glendale are similar to houses in my street that would go for $400K plus. If my wife ever kicks me out, I know where I'm coming to retire! 

[BobbyR]

Thanks Bobby.

Yes, I do get the issue with an interest only payment. I agree.
 
As Canadians we can't write of mortgages, so we tend to have a different outlook on the "todays value" than down south.
We tend to pay it off as fast as we can.

I was not aware of that. The long term Mortgage is fairly new. It came to be toward the end of WWII. Franklin Roosevelt was an Aristocrat and maybe one of the most intelligent Presidents of modern times. He had commissioned experts in every area. He asked the top Historians of the time to give him a report on what were the characteristics of the most stable societies. The recurring theme was private ownership of property. He then rammed through Legislation to allow the Fed to lend Banks money to fund long term Mortgages.  Roosevelt knew he had a million men coming out of the service who wanted to start their lives, and he did not want to repeat the unrest that always occurred after a War.

Prior to that people went to the Bank and took out a series of 5 year loans to pay for their homes. The owners hoped that they would get their money out of it. When it was left as Roosevelt envisioned it, all worked well.