Talk:Reverse mortgage

Most of this seems to be lifted straight from the "Reverse Mortgage Fact Sheet" linked in the External Links section

An entire section was taken directly from http://www.consumersunion.org/finance/revexewc899.htm so I deleted it. DCB4W 20:27, 30 December 2006 (UTC)[reply]

Under the "Volume of loans" paragraph, it states: "Section 255 of the National Housing Act, which governs the HECM program, limits the aggregate number of outstanding HECMs to 250,000. The cap could possibly be reached in 2007 or 2008, and efforts are currently underway to remove or increase the limit."

Then under the "Demand for reverse mortgages on the rise" paragraph, it states: "The Federal government in December 2007 removed the restrictions on the number of outstanding reverse mortgage loans they would underwrite at any given time. Prior to the new legislation, the original limit was 275,000."

Can someone please correct these conflicts with the correct information?

Thanks,

Apache0c

OK. Directions under "external links" are to propose new external links here. Here are two for consideration:

1. Current and Historic Reverse Mortgage Rates

2. HECM Loan Activity Data

3. Annuity for Life Calculator

You may be interested to know that the National Reverse Mortgage Lender (NRMLA) site website also provides similar information in static format (i.e not searchable or interactive). However, they restrict access to "members only" NRMLA which seems to run counter to Wikipedia's mission.

I do believe these links add value to anyone searching for information on reverse mortgages.—The preceding unsigned comment was added by Sagetips (talk • contribs) 17:35, 20 October 2006.

• sorry.. those are adsense blogs, both are Links normally to be avoided and are against policy. However feel free to contribute content rather than links. see Hu12 17:49, 20 October 2006 (UTC)[reply]

So, do I understand that sites with adsense cannot be linked to by Wikipedia? If so, OK. Or, if by "adsense blogs" you mean the blog was created solely for purpose of ad sense, then you did not take much care in reviewing site.

By the way, is the "discussion" board a "one-person" (HU12) decides scenario or what?—The preceding unsigned comment was added by Sagetips (talk • contribs) 18:00, 20 October 2006.

• they are both... adsense sites and also blogs. The discussion board is open to all editors, i just happend to answer first. anyway, Wikipedia views these as Links normally to be avoided and would be considered Spam if added. Hu12 18:35, 20 October 2006 (UTC)[reply]

OK Thanks.—The preceding unsigned comment was added by 207.74.51.248 (talk • contribs) 18:45, 20 October 2006 .

So what happens when the mortgator dies? Does the lender assume ownership of the property? 4.64.8.220 28 June 2005 17:32 (UTC)

yes, the lender takes it, sells it, and regains the loaned money. --ʀ6ʍɑʏ89 01:31, 13 February 2006 (UTC)[reply]

No. The loan becomes due when the remaining surviving borrower dies. Just like any mortgage (lien) on a property, it must be paid. The heirs can sell the property as they normally would or refinance it if they wish to keep the property, to pay-off the reverse mortgage loan balance. The lender never takes title (forcloses) on the property unless you break the loan agreement. As a non-recourse loan, the heirs cannot owe more than the value of the property.--Nrosskothen 19:18, 19 January 2007 (UTC)[reply]

Nrosskothen, it wuld be nice if you could incorporate that in the article, seems notable and informative. --Hu12 19:37, 19 January 2007 (UTC)[reply]

Sounds to me like a great way to screw your kids over with bills you didn't pay. Funny how the commercials never mention that little tidbit. I think the article should include something about the heirs' responsibility for the loan. I would do it, but I'm certainly not an expert on the subject. —Preceding unsigned comment added by 68.209.191.158 (talk) 19:57, 5 June 2008 (UTC)[reply]

A reverse mortgage is a non-recourse debt which means that if the debt (including years of compounded interest) is greater than the market value of the property when the owner dies or leaves the property, the lender cannot collect the deficiency. Instead, the feds pay the deficiency to the lender. Hence, the children or heirs of the former owner are not stuck with the debt. If the market value is greater than the cumulative debt, the heirs get the equity. Greensburger (talk) 23:13, 5 June 2008 (UTC)[reply]

This sounds like a commercial you would see on TV. What are the draw backs of a reverse mortgage?

fixed. --ʀ6ʍɑʏ89 01:31, 13 February 2006 (UTC)[reply]

I think that in some reverse mortgages, the home owner pays some money and in others he gets money back or pays nothing. previously, it said that he pays nothing. [1] can someone check this for accuracy? --ʀ6ʍɑʏ89 01:31, 13 February 2006 (UTC)[reply]

The HUD article says: You don't make payments, because the loan is not due as long as the house is your principal residence. That is consistent with the NYT article that I added as a citation (see below), and with the other external links which I checked. I have removed the text that says the borrowers pay, since it is flatly contradicted by several sources and not supported by any that I could find. If someone does find a source, I'd be happy to see it added back with the source cited.

I note that when I checked the Australian link, I found that the program seems VERY different from the U.S.. For example, it says If you can go on living in your home for a reasonably long period of time, you may be getting good value for money. However, if you die or have to go into aged care soon afterwards, you may have sold your home too cheaply compared with selling it on the market. That isn't true in the U.S.; when you get a reverse mortgage, you're NOT selling your house, you're borrowing against it. (In other words, the article would certainly benefit from a separate section on what "reverse mortgage" means in Australia.) John Broughton 04:52, 13 February 2006 (UTC)[reply]

i think we need some in-article citing. User:John Broughton, can you add some citations for the major changes you made? --ʀ6ʍɑʏ89 01:31, 13 February 2006 (UTC)[reply]

Actually, all the information I added is from one NYT article; I've added a link in the last section (external links) to that NYT article. Apologies for not doing this at the time of the rewrite.

(The unusual URL is from this site, based on a comment here about creating permanent links, since after a week or so the NYT moves the article, shows only a small portion, and wants to charge for the rest.) John Broughton 04:54, 13 February 2006 (UTC)[reply]

Experts study the American system. In the past, the German old age pensions were comparatively high. That is changing and with a growing group of aging poeple without children, the interest is also more and more given to install a comparable system. Until today, a "lebenslanges Wohnrecht" (lifelong right to resit) and "Leibrente" (special pension) are commun.

I'm very unfamiliar with finances and honestly this page confuses me. I'm curious as to what one of these is and though I have a slightly better idea, I'm still not sure what sets this apart from other sorts of loans based on the value of your house.

66.240.35.207 06:34, 10 February 2007 (UTC)[reply]

Here is a good brief explanation:

Reverse mortgages allow homeowners aged 62 and over to convert home equity into cash while living at home for as long as they wish. Borrowers continue to own their homes, and do not need to make any monthly payments. Instead, they can choose to receive the funds as a lump sum, line of credit, or monthly payment. The loan comes due only when the last borrower moves out, dies, or sells the home.

Source: GNMA: Government National Mortgage Association, a wholly-owned corporation of the US Government that functions as part of the Department of Housing and Urban Development (HUD). Bobcheal 22:32, 16 March 2007 (UTC)[reply]

I've done some work here but it still needs help, mostly citations and a good edit by someone who actually knows the subject.--edi 06:01, 7 May 2007 (UTC)[reply]

In the second paragraph, "If the owner receives monthly payments, then the debt on the property increases each month." reads as though making your monthly mortgage payment increases your debt. I'm not sure enough of how this all works to change it myself, but I think it should read "If the lender receives monthly payments, then the debt on the property decreases each month."

I am new to this so if I did have valid reference material how does it get approved for that section? —Preceding unsigned comment added by Rmlusa (talk • contribs) 02:37, 14 December 2007 (UTC)[reply]

Reference your content additions with established news sources or literature , this is always best practice.External links policy on Advertising and conflicts of interest states You should avoid linking to a website that you own, maintain or represent, and in this case, it appears your related to reversemortgageloansusa.net and bestreversemortgage.com. IE. (Rmlusa (talk · contribs)). You would want to avoid a conflict of interest buy citing those urls. Also those links would not be considered reliable sources(WP:RS). thanks--Hu12 (talk) 02:50, 14 December 2007 (UTC)[reply]

The links that are currently referenced for the "Reverse Mortgage Daily Blog" are incorrect. These links reference some blogger out in Arizona. These links (I don't know why there are 3 of them) should be going to http://reversemortgagedaily.com. The current link is clearly an error. —Preceding unsigned comment added by Gyedinak (talk • contribs) 12:04, 25 March 2008 (UTC)[reply]

I have replaced all these with {{citation needed}} tags; blogs are not considered reliable sources. --CliffC (talk) 04:05, 3 April 2008 (UTC)[reply]

Surely, given the ponzi scheme nature of this, there has to be criticism of this type of thing. Especially given the fact that it could be very easy to trick old people into giving up their house which should have been given to the heirs. Very deceptive, indeed! --22:38, 14 November 2008 (UTC)