Great Deal???

[sallanblock]

Can anyone enlighten me about this latest gimmick where we get a letter in the mail offerring a great deal of money for our house, we can live in it for as long as we are alive, our children get to inherit it, all we have to do is continue to pay the taxes while we live here and I believe there's a $10,000 fee to draw up a contract with a new title. I should add this is a retirement development. I may be wrong on some of the details but has anybody heard of this at all??

[Thesa]

It sounds like you have received an ad for a reverse mortgage... and in general this is what I have found out on how they work... they give you a loan... and pay off your property.... you are allowed to pull funds from the loan at any time.... you pay an interest rate like 6% to what ever on the funds you use... the funds that are not used go into an escrow type account and you earn a smaller interst on them... you do not have to make payments on the funds you use.... but the interest continues to accumulate... and upon your death your children or family or who ever you leave the property to has one year to settle the debt... they can do so by paying off the mortgage, or selling the property... the reverse company will also sell it if need be any funds over what is owed is given to your family.... what some are banking on is that if they get a reverse mortgage for say $150,000 and expect to have 30 years of good living left that the home will be worth 3 times that upon their death... allowing the family to refiance, sell or plain pay off the debt.... there are a lot of underlying issues here and you should investigate this well before falling into a trap.... and always remember.... IF IT SOUNDS TOO GOOD TO BE TRUE IT PROBABLY IS.

Best of luck to you, let us know what they were trying to sell you

[sallanblock]

I'm not sure if this is the same thing as a reverse mortgage but you're the expert. I'm here on the East Coast, New Jersey to be specific. The ad said they were offerring $300,000 for the home. A house that usually sells for around $200,000 in this area. I was quite surprised to hear that my children could still inherit the property and don't see quite how that works. As I said previously it would cost me $10,000 to go to contract and change the deed. Is this some sort of scam and has anyone actually participated in this venture? I'd like some more feedback if possible.

[Thesa]

My thought it is a scam.... to change a deed means you are giving the property to someone else or at least an interest in the property... and $10,000 is a lot of money for this... I would seek the advice of an attorney... and possibly the attorney general's office.... it could be mail fraud.

If it sounds too good to be true it most likely is.

[sallanblock]

The offer was to buy my house (it is fully paid off) at a price of $100,000 over market. My children get the inheritance and I get to live here until I die just as long as I continue pay the taxes. Not sure if it's a reverse mortgage but it sounds interesting. Any last thoughts??

[Thesa]

I still think it is a scam... and would be very leary of it... make sure you read all the small print... have an attorney look it over and beaware of the entire situtation before signing a thing.

best of luck

[sallanblock]

This "deal" is being offerred by the bank we've been using since 1958. Do you still think it's a scam?

[Cedar City Utah Realtor]

I think its a reverse mortgage and you should really get some professional legal advise if you are thinking about doing it.

[sallanblock]

Can I use a realtor to determine an appraisal of inherited property as proof for capital gains? If I wanted to determine the value of a home at the time I inherit it, will a realtor's assessment suffice?

[Paso Dog]

You should use a licensed appraiser and get a full report from them incase there is any dispute.

[sallanblock]

Shouldn't a licensed appraiser & a real estate agent assess the same value & why should the IRS dispute this?