Date: Wed, 1 Sep 2004 15:33:50 CST
From: Ron Peterson 
Newsgroups: misc.invest.financial-plan
Subject: Re: Reverse mortgages
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Cal Lester  wrote:

>                    What pray tell would a sub=-standard property be?

Your indenting style makes replies difficult.

I wasn't referring to sub-standard. If a person has a unique home, it
may be difficult to get an idea of what its market value will be.

>                    The R/M concept works equally well for ANY Home
>                    that is OWNED (or in conjunction with a bank ! ! !).
>                    The property is valued at today's market, less any
>                    outstanding loans & the service fees. The balance
>                    is the payable to the OWNER either as an Income
>                    (which IMHO is preferable) or lump sum.

But, what happens if the home has a loan that is larger than the market
price of the home. The home owner may have to dig into other savings to
close out the position.

-- 
   Ron