Posted by Mike W - LV on July 17, 2005 at 23:43:05:
Reverse mortgage, huh? So you want to end up with more debt at the end of your life than now? Really a bad idea pushed by banks. You have to qualify to RECEIVE payments! That’s a new one.
Yes, why not sell it and lease it back. You’ll have no debt since the investor will cash you out. If you have lived in the house for any 2 of the last 5 years, your profit is 100% tax free.
You get your cash, you get use of the property via the lease, and no debt or liability. Also, the new owner pays property taxes and insurance. Not insignificant in some parts of the county.
Yep, it’s called a “life estate”. Depending on your age it may not be a good deal for the buyer. Essentially you become a “tenant for life”. People sometimes do this so they can “spend the kid’s inheritance”.
Do not know your age so don’t be offended if it does not apply.
Perhaps look into getting a Reverse Mortgage.
Def:
““A reverse mortgage is a special type of loan used by older Americans to convert the equity in their homes into cash. The money from a reverse mortgage can provide seniors with the financial security they need to fully enjoy their retirement years. The reverse mortgage is aptly named because the payment stream is “reversed.” Instead of making monthly payments to a lender, as with a regular first mortgage or home equity loan, a lender makes payments to you””.
Not many brokers/lenders do these type loans so you will have to make a few calls. Think Wells Fargo is one of the largest.