Posted on 12/02/2010 4:02:05 PM PST by plinyelder
Thank You.
All of this really boggles the mind.
It seems that you MUST always be looking for the fine print!
Everyone wants to see what and how much they can ‘steal’ from you nowadays.
I have been a professional real estate investor for 37 years. My analysis indicates that a typical home must appreciate by about 6% a year over time to be worth owning from an economic standpoint. Sell the house, quickly. To do that, price the house 3% under the current competition in your area, assuming average condition. Since almost everyone overprices their home by 3-5%, you will be properly priced.
Even in a poor market, I did this last winter with a house I wanted to unload. I analyzed the competition to be priced at $259k for a similar house. I priced mine at $249.9k. I had 3 offers in two days and closed it 32 days later at $252.5k.
Calculate the cost of staying in the house compared to the rental cost of a suitable apartment, duplex or small house. Taxes, insurance, mortgage payments, maintenance, lawn care and in some cases utilities. For example, my house was mostly frame and required painted about every 5 years. Cost to paint, $2,500. Cost per month just to keep the exterior of my house painted, $45.
It is quite unlikely that your house will appreciate by 6% annually anytime soon. How much more do you want to lose? Sell the house now. And good luck to you.
If the loan is only in her name - and she dies before you, the bank would sell the house... often there’s extra costs involved - could be nothing left when it’s figured out. Might be better to sell the house, buy a smaller place and “do without” almost everything until you get a job...pay off the credit card debt etc..
From reading some fine print on a mailer, IIRC, they get 50% of any appreciation when the house is sold.
Oh, and plinyelder....Reverse mortgages are a ripoff. The fees are ridiculous. Reverse mortgages must have been created by a pawnshop owner. Run away.
Reverse mortgages are a ripoff.
Statistically true....BUT It worked well for my parents. They were behind in credit cards, car payment etc (and lived very modestly)...when my father came to me he needed this option. His house value was about 70k so we obviously all wanted them to have the equity in their home to get caught up. It was their money of course....Advice for freepers.....make sure as your parents get older they are caught up with bills. It broke my heart when my Dad told me of his situation. I never saw it coming.
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