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Johnny Said:

Have no mortgage on either of 2 homes. Can I reverse mortgage either?

We Answered:

My father got a reverse mortgage and one of the requirements is that the home must be your principle residence and you must agree to continue living in it.

So, doubtful.

Besides if you reverse mortgage, the home is no longer yours, yet you still pay for all upkeep and taxes. With my father's, they set the value of the home so high (then paid him pennies) that when he passes, there is no way that the home will sell for more than it has to, to satisfy the lender. So, they get the house and not us kids. Fine by me, I wasn't exactly counting on an inheritance, as my parents were working class, not union, no pension types.

Personally, I would think you would be better off selling the home for less money, than to lock into a lender. Look around, it isn't as if the lenders have been honest & truthful.

If your home isn't selling, it is because it is overpriced. There are buyers out there who want homes, but they are not going to pay top dollar for them. Especially when you consider the bottom of the market is nowhere in sight.

If your house hasn't sold for what you "think" it is worth, then news flash, it isn't worth that much.

True value of an asset is what someone is willing to pay, not what you bought it for, or put into it, or what an "expert" tells you it is worth. It is only worth as much as someone will pay.

Your real question is do I want to just take the hit now, and get rid of the taxes, upkeep and insurance, or do I want to continue throwing money into it, get paid pennies on the dollar and still lose any potential profits. (slim potential).

Good luck to you.

Have you considered renting the homes? That way you keep your asset and get a monthly income. Of course, you would have to pay higher taxes and insurance, but the asset would still be yours and you would still have options. Once you reverse mortgage it, you have virtually no options.

Velma Said:

What is a reverse mortgage and do you advise it as a retirement option?

We Answered:

A reverse mortgage can be a good source of income for someone who needs addtional money and can't get it from anywhere else. Your home equity is used as income. You do not make monthly payments you receive them. Sometimes you can also get a lump sum if needed.