Anonymous
Anonymous asked in Business & FinanceRenting & Real Estate · 1 decade ago

Is it a good idea to take reverse mortgage?

My mum and dad are going to retire in 5 five years and the superannuation is not enough to have a good pension so is it a good idea to take reverse mortgage on our family home hence they can live there retirement years to the full

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  • 1 decade ago
    Favorite Answer

    Your parents are still young. They could easily out live their equity and end up loosing their home. If they had retired 10 years ago this would be an OK idea, but considering their age this could be a disaster.

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  • Anonymous
    4 years ago

    I suggest a real estate attorney be consulted as to how the children can buy the farm as contracts will be required to assure the children of making payments. I am a little amazed that the children are not helping out their parents knowing that when their parents past away, the farm will be theirs anyway, assuming that the parents are planning on leaving the farm to the children. Many legal questions need answers and a lawyer will certainly be needed.

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  • Anonymous
    1 decade ago

    The best thing for you to do is fork over money to your parents so they won't have to do a reverse mortgage. Yes it's good for them but when they die you will have to pay the amount back or the house will belong to them or put up for sale.

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  • ?
    Lv 7
    1 decade ago

    The only draw back is the could still run out of money and lose their home. If your parents outlive the money then they move in with you.

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  • 1 decade ago

    Not a good idea. Consider living within what they can afford is a better option.

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  • Anonymous
    1 decade ago

    it's great for them and bad for you.....

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