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I moved back from Greece, away from family, in 2005 to be with my dad, he is now 80 and alone. We discussed and agreed that he would sell his home and move back to Greece with me so that he can live with me and not ever go into a home. I have introduced him to some other senior friends here, as he had no-one, and now I believe they have influenced him to do the reverse mortgage. My partner gave him $50,000.00 about 6 months ago to pay off his mortgage and debts, but he has recently gone ahead and did the reverse mortgage, without consulting us, but i found out anyway. He never toldl us, but just said he didnt want to move to Greece because of the money exchange being so bad and that he has good friends here now. I feel hurt as he now knows that I will not be going home to Greece but will have to stay here to take care of him when he is incapable of doing so alone, so now I am worried that maybe he will lose his home on the reverse mortgage, please help.

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I do not know if this personal story would help ease your mind about reverse mortgage. My mother in law had parkinsons disease and was bedbound. I took care of her along with my husband at mother' in law's house. The conflict came up when the sister of my husband claimed that if her mom would stay in an assisted living, the house could be rented and the sister would get 1/2 of the rent. Well, then the idea came up to get a reverse mortgage from Fanny Mae Foundation. The bedbound mom signed it with a witness from the bank as the Notary public. They got the loan, the sister was given half of her share, and was sold at the time of mother in laws's death, and paid the reverse mortgage, and whatever was the equity left, was given to the children. What I knew bank who issued the reverse morgage loans will keep the property until the owner passed away. For that reason, your dad can live there for as long as he lives. You can ask the bank where your dad applied for reverse mortgage for better understanding of reverse mortgage. The law can change from time to time. Good luck.
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I understand that a reverse mortgage is a way for a person to live in their own home until they die. The bank pays them a fixed sum each monhth until they die. After that, the bank owns the property. Heirs to not participate in the equity. The bank owns the property.
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ok, we have reverse mortgage on Mom's house here in Calif. thru Wells Fargo. The "refinance" amount is not set to eat through the entire equity (unless financial crash plummets the value). It is set up so that even if Mom eats through all the equity, she can remain in her home (though without income from RM, it's rather pointless guarantee) Even with both cycles of our loan, it will only impact 1/2 mom's equity, should she die or be placed in a home permanently. There is a waiting period to see if she'll return to the home, then the home must be sold, the loan paid off. The remainder is "inheritance."

Sure someone with real knowledge will pipe in. Perhaps you might have to wait until advance dementia or actual nursing home placement to bring your father to Greece, if indeed you can transport him.
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Like with other financial transactions, reverse mortgages can be good or bad depending on who holds the mortgage. But also like other mortgages, you can still sell the house; tho this may mean losing money given the fees that are paid up front.

Note too that the mortgage lender doesn't own the house, but they do have a mortgage on it. So whenever the house is sold, they must be paid back first before any equity can remain, just as with a regular mortgage.

AARP has quite a lot of resources available about reverse mortgages here:

http://www.aarp.org/money/personal/reverse_mortgages/

Hope this helps!
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Hi Gina-Is it possible to speak wiith someone like a financial advisor, someone from AARP, or someone affiliated in your local chapter of elderly affairs?

Since I do not know if your dad was fully compitent at the time he did reverse morgage, it becomes difficult to know the complete story. By the way~was there POA set up over your dad's estate?

I have read some of the feedback already, and there are also some valuable tools for you to work with.

Good luck!

Hap
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Thanks to all of you for your responses and information you submitted to me...there is alot for me to learn on this and I appreciate your taking the time to write.

be well be happy all,
Gina
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Reverse mortgage turns your home equity into cash that you can use to pay your health care or long term care expenses, mortgage and other debts. Your father will not lose his home unless he changes residence, sell his home or when he dies. If you have other questions regarding reverse mortgage for seniors, please refer to these resources:

http://www.aarp.org/money/credit-loans-debt/reverse_mortgages/

http://www.revmortgage.org/

http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/hecm/hecmabou
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If one needs to use a Reverse Mortgage to help pay to maintain living in their home, it would make more sense to sell and downsize to something more affordable.

Do not use a Reverse Mortgage to pay debts as the RM is also a debt that needs to be repaid, along with interest, fees, etc.
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ginali, your concerns are valid. I would suggest to read the paperwork and conditions of your father's reverse mortgage. Reverse mortgages are expensive loans that can be paid off when a property is sold. It won't lock your father in place should he need to move, but his house will need to be sold if he does. The reverse mortgage holder will take a large portion of the sale price, depending on how long the reverse mortgage has been paying your father. Be sure to read the contract and all supporting material.

I personally wish reverse mortgages were illegal. Often the people who take them out cannot really afford to remain in their homes and end up defaulting on requirements of the RM. They can sound so good when advertised on TV, but they are instruments designed to make a lot of money for the lender, and not something done as a favor to older people. My philosophy on reverse mortgages is that if you need to take one out, then you really can't afford one. It would be far better to sell and downsize when maintaining that old house becomes too difficult.
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Hey, I went through you situation a year ago. It was really difficult. My father was living with me as he is kidney patient with diabetics. He wanted to move back to his home which was rented. My sister got unemployed during that time so the house rent was given to her to help with bills and all. So we went for a reverse mortgage. We talked to so many mortgage brokers to get the best rates and finally decided on mortgages. They were really good and explained the properly. The half of the mortgage was given to my sister. As far as I know the lender will wait till the owners passes away. Then you can sell the home and pay off the mortgage.
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I want to comment on another aspect of your post, ginali. You have been away from Greece for 11 years. You thought you had a plan worked out so you could go back and your father would accompany you.

But your father does not wish to go to Greece. He feels his ties are here. That seems reasonable to me -- it should be his decision.

But you get to make decisions, too. Are you really willing to stay here another 10 years or more? Why do you have to be here? Many, many elderly people get by without having children near them. There are all kinds of resources available to your father. You may need to come back at some point to see him settled in a care center, if it comes to that, but I don't see why you each can't decide where you will each live.
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Jeanne, Ginalli posted in 2010.
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reidboy, was your Dad living the house when he got the Reversed Mortgage? Is he still in the house or is he living somewhere else?

Please read over all the paperwork that came with this mortgage.... I wouldn't be surprised if there is a clause that says if your Dad lives elsewhere, that after one year the loan can be called. Thus someone would need to pay the mortgage, all the interest and all the fees. If that isn't possible than the mortgage company will ask that the house be placed on the market For Sale by a Realtor at fair market value.

The exception to the rule is if your Dad was married at the time of obtaining said reverse mortgage. A spouse can remain in the home until that spouse passes... then the loan will be called.
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@freqflyer, I am sure about that particular clause. He is still living in the house. I have to contact Mortgages.ca for more details.
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