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REVERSE MORTGAGE: The New Way To Disenfrachise Our Children
It’s all the rage. It’s sweeping the nation. It’s the new mortage product that will provide tax-free cash to homeowners age 62 and older.
A reverse mortgage is money loaned against your home that you do not have to pay back as long as you live in your home. When you die your heirs are responsible for paying off the loan.
Although there are several different types of reverse mortgage products they generally have the same features.The mortgage companies and banks that market this product promote it as “a unique loan that enables senior homeowners to convert part of the equity in their homes into income without having to sell the home, give up title or take on new monthly mortgage payments.” These thieves have come up with an innovative way to steal your property from you and your progeny.
These predators tout the benefits of receiving the funds in one lump payment or as a monthly income, line of credit or a combination. The mortgage bankers promise the funds can be used anyway the borrower chooses.
If there is an existing mortgage the funds from the reverse mortgage must be used to pay off the existing mortgage at closing. This elminates a monthly mortgage payment.
For homes in a living trust the owner can take out a reverse mortgage subject to review of the trust documents.
According to those who promote this reverse mortgage the IRS currently treat money received from a reverser mortgage to be a loan advance and not taxable income. They say the proceeds from a reverse mortgage generally do not affect
benefits from Social Security or Medicare. You are advised to check with the appropriate government agency to verify these statements.
Continued in next post Part 2:
” Reverse Mortgage: The New Way To Disenfranchise Our Children”
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