Elderly poverty is a real thing. I understand where you’re coming from on this video but you have no other solutions to present for the problem. Elderly poverty is a problem and not qualifying for a regular forward loan is also a problem.. instead of just ragging on a federally backed mortgage program, maybe we should Discuss how social security hasn’t recieved a raise in decades. Or how pensions are no longer a thing. Or how 401ks aren’t the retirement vehicle that people are banking on them to be. Reverse sucks. But as an elderly person, not being able to afford meds, gas, food.. that sucks a lot worse than not passing on something to some heirs that hasn’t visited in decades. #justsaying
You made me learn more about this - the guy who originally came up with this concept in 1961died recently: "Nelson Bernarr Haynes, 88, died at home on Sept. 8, 2022" It appears the idea started in good faith, but like most things humans touch - turned into shit.
my grandparents have dementia, and in their early stages they almost got scammed by a scam specifically targeting the elderly. thankfully they realized something was fishy before sending money, but targeting old people is a special kind of shitty
Where i live it's not uncommon for old people to hand over the handling of financials etc to their children before old age, dementia etc makes them make bad decisions
@@tomlxyz yeah, my uncle now takes care of their finances, but this was in the early enough stages that they still would have had the ability to buy gift cards to give to one of these scammers or something
and it's getting a lot worse as our population ages in Canada, the Uk, Europe,and the UsA. their accumulated wealth from a healthy economic world since WW2 means they have the "kash" and the sharks are circling.
If someone is diagnosed with dementia then either a family member or appointed guardian should takeover all legal responsibility for these affected seniors. Any phone call or home visit from a business would therefore not be legally binding.
Again, good work. Tom Selleck is worth at least 45 million and at 78 years old I think he has enough money to live well until his death....without scamming people that are not as lucky as he is!
You praise Scott like he was the first recently to alert people to this issue. He literally got the idea from the recent season 22, episode 3 of Family Guy
older people that need this information don't usually watch family guy. This is a factually researched investigation, not everyone would believe a family guy cartoon@@dftfire
Yeah. It’s like when your boss starts out”I’m talking to you as a friend not as your boss. You know yep it’s time to brush off the old resume because he she is talking to you as your boss.
To the contrary, Tom. _Yes, this actually is another way for the bank to get your house! !_ 🖕 I heard Tom Selleck in those AAG ads for years. His pitch sounded all friendly & harmless. But what I was paying attention to is how 1. this type of loan demands putting hard-earned equity at risk. 2. No inheritance for the kids 3. A suspicion that the sum of "payments" made back to grandma are ridiculously small compared to when the company takes possession of the house & resells it for profit People dont seem to realize how predatory banks are. At some point back in the 50s banks started talking people into committing themselves to a 30 year mortgage to pay for a house. A 30 year mortgage was unheard of. Theyd seen how the saving habits of Depression Era children (whod become adults) enabled them to pay cash for land & houses, & they found a way to help themselves to all those alluring savings accounts, swelling with account-holders hard earned cash "Reverse mortgages" are just another way of these banking scumbags to get at wealth they never earned, same as before back in the 50s. The tactic changed, but the motive is the same, & so are the results for the victims
My boss is a multi millionaire. He always says : " If someone is coming to you, in order to sell you something, he is there for his benefit, not yours!"
Yep, a very long time ago I learned to not even bother answering my phone unless it's a close relative I trust. I learned to not respond to any emails from strangers, any letters, anything. I am a man, I know what I want, and when I want something, I seek it out. It will be there, it always is, or will be soon enough.
I’m middle-aged, with the exception of a small inheritance from a distant relative, I have yet had anybody come to my door or mail me a letter wanting to give me money. I haven’t even gotten an email from a Nigerian prince. Every business in existence has one goal, and that’s to take your money from you. When I see commercials or print ads about something that’s appealing, I try to remind myself of the same thing. Businesses put their advertisements in front of us because they know it’s the same thing as putting candy in front of a kid.
About 5 minutes in and want to share my story: In the 90s my mom almost got one of these- she wanted to retire and buy a condo or house in Florida, to be near our Caribbean relatives. I was home on college break and read through the contract. I told her what could happen and to just sell the house. The reverse mortgage at that time offered 80k; my mothers home in Bed Stuy was worth 3- 4 times that amount. Talk to your grandparents and parents, people- and see what they are up to
@@danquaylesitsspeltpotatoe8307 This is a wild take… reverse mortgages are absolutely a predatory lending practice. People don’t do it to “enjoy their money,” they do it out of desperation. Do you find it amusing or karmic to see elderly people standing in food pantry lines or homeless? Because that’s what happens when their reverse mortgage runs out, they can’t pay it back and they subsequently lose their home. It’s not just about inheritance it’s about a person who is usually in no position to get out of the loan by picking up an extra job and income. Lose lose = scam
How is this a scam at all? The reason the only offered 1/4 of the property value was for her to maintain as much equity as possible, looking out for the borrower. Jesus people are so uneducated financially
@@johnchandler1687 I'm a real estate agent. I did things like talk a couple out of selling a home they just bought as they would lose so much. The next day they listed it with another agent and it sold the next day. Don't believe everything mad magazine says. Now used car sales men... another story.
All you need to know is it’s “Safe and Effective” and we’ll ruthlessly censor and vilify anyone who says it isn’t. That’s how you know you can trust us. Wait….are we still talking about Reverse Mortgages? 🤔
One of Ronald Reagan's best messages: About the scariest thing you could ever hear is someone saying "trust me, I am from the Government and I am here to help you"
Before you get all upset let me tell you several different stories about people who have gotten reverse mortgages. It isn’t a great financial tool but if you cheat a little bit it can be , 3 different family members have gotten them , 1 didn’t want to pay payments anymore, 1 bailed out her daughter bills and 1 didn’t want house payments anymore. None of them lost their house BUT they also had children who were indifferent and ignored their parents and their needs . The 2 that made out terrific rented the property out to family members only and moved to their vacation homes. The 1 that didn’t do as well was robbed by her grandkids and refused to press charges so they were stuck with thousands of dollars in C.C. debt from her own grandchildren. As far as leaving money/ inheritance to kids who don’t come around , don’t help with anything and have the nerve to expect money- your really something….
When I asked the car warranty folks to send me a copy of the policy that I would be paying for they were surprised and reluctant. After reading it, I declined to purchase it and participate in their program.
When the actress spokeswoman first starts calling us MY DARLINGS I knew it was a scam...Then she said she was known for her beautiful hair which is in fact a WEAVE...Ha! Ha! Ha!....What she does not tell you is that the auto shop you bring your broken car to will charge you to dismantle the engine to see what the problem is...once the problem is identified the company pays for all the required parts, but you have to pay for the mechanic to put the engine back together...100% SCAM which prays on the black community.@@HaroldBrice
When my mother died I wanted to pay off the reverse mortgage my father took out before he died. I had the cash. Champion Mortgage refused to talk to my lawyer or banker. They wanted the house! They filed for foreclosure! After six months the bank simply sent them the amount they thought would be the pay-off amount (over the six months the interest and fees kept accumulating). It was a horror story.
I just went through the same thing when my father passed. didnt know he had one and it was a nightmare getting it resolved. They filed foreclosure and took me to court since I was the sole heir.
I tried to buy my dad's house in the villages. Same story. Now it's worth 340k. Unbelievable. And they sold him the idea so he wouldn't have to trouble his kids about money. I hope there is a hell.
There is something else going on here---if you had a lawyer, why didn't you sue? Banks don't just pay off mortgages, forclosure or not. And yes, your dad should have informed you about the terms of the mortgage. I wonder if this really was a reverse mortgage.
They're evil, Chase took our home in 2013 during Obama. We should've got that deal where they go by the income you have, instead they told us to be out in six months. So we got mum and dad to loan us money and got a mobile home
Actors are paid to sell products regardless if they believe or have ever used that product. There needs to be more "TRUTH IN ADVERTISING LAWS" that require a person advertising a product has actually used that product. That will probably never happen. So, they continue to praise the product hoping the viewers will buy that product.
An acquaintance of mine had a reverse mortgage. There was this appalling clause in the contract that stated if the owner was involuntarily out of the home [hospital, nursing home] in excess of 30 days, it would trigger foreclosure. She was hospitalized, then sent to a nursing home and her home was taken.
Hire a lawyer, go through the fine print in any agreement that involves a lot of $$$. A $500 investment in a lawyer could save you many thousands of times that
If it's government regulated it almost certainly is a scam. No bigger scammers than your own government. If people can't see this after the last few years of hell, then they probably never will.
Except tom Selleck isn't washed up. He's making 4 or 5 million a year from Blueblood's alone + he's worth a 100M. Why he's risking his reputation on crap like this is just crazy.
You need to tell Joe Namath, always selling additional Medicare benefits, which are also scams, and people who have fallen for it have said it was a waste of money.
My mom's friend did this. She was told to make home improvements, so she did. She passed away and they took the house, with all the new upgrades. Kids got nothing. Mom's neighbor did it too. She passed and her caregiver son suddenly became homeless. What a scam.
Reverse mortgages are not for everyone. Its not for people who have kids who are expecting an inheritance, its for people who have no heirs, so they can live better in their later years.
When I first heard about reverse mortgages, my mind remembered what my Dad said many times: "If something sounds too good to be true, RUN LIKE HELL!" I had no idea until watching this video just how bad these things are.
If you can't run, walk! and don't answer the door, don't t answer the phone if you don't recognise the caller and don't open email from strangers. Unfortunately, elderly people grew up in a time before the demons were unleashed. They're running riot.. Don't be naive!
Its not too good to be true. They are selling their house. Its a lot of money they can spend on themselves instead of leaving it to rotten children who don't want to work.
My 'cousin' took one. They appraised his place at $200K 20 yrs ago. Gave him $100K cash, per his request, and $770 mo. for the duration of his life. He collected this for 15 yrs. Passed away in 2022. Looks like he cleaned THEM out on this one, according to MY "arith."
It's a shame that too many people confuse the actor with the characters they play, and trust their advice. No one ever gets anything for nothing, there are always strings attached.
You're very wrong ... the banksters get everything they want, for nothing. It's been going on ever since the Rothschilds took over European banks, and pushed through the Federal Reserve Act---meaning for them: Free Money. Banks create money out of nothing, lend it out, and charge interest ... which is the same as creating money from nothing.
My brother stole 70k from my elderly Father. My dad took out a loan but the loan payments were too much so he took out a reverse mortgage. It was a lower interest rate and he was only going to pay off what was owed. Welp, he got 140k and after he paid off the loan my brother then stole the rest of the money. So, thats the house. And I'm the POA so get to deal with all the legal s**t now. Beware of family and friends.
ours is 1.5 million US in 1997 dollars. I didn't find out until dad passed in 2015, but he kept very accurate records. Filed a "compliance file" with the IRS. They were helpful, but blanketly told me "if you don't hear from us in two years, you're not going to". Too many other scams going on.
@@williamwhite9767 our was non linear dementia: dad thought it was HIS idea. for a few days. by the time he comes to his senses, the money is long gone.
When I lived in Florida many years ago, I dated an older guy who owned a large home in a very good area. Not right on the beach, but not far from it. He had money, so he had already moved into a smaller apartment. He had been considering a reverse mortgage on his house. I asked him about how complicated that was and the potential downfalls. Ultimately, he decided to sell his house and take the money. That way he was done with it and no one could take it away from him.
@@ShaferScott Reverse mortgages are not a scam. They are just another misunderstood financial instrument. The purpose of the reverse mortgage is to monetize your home equity today to allow you to live out your twilight years while still living in your home. If you are taking one out, you are purposely intending to NOT leave your home to your heirs. A reverse mortgage company is not paying half off for your home. They are lending you money today and expecting it to be repaid only upon your death and/or eventual sale of the home at some unknown date in the future which can be 2 years or 20 years from today. That is insanely risky for a lender which is why the interest rate is higher than a traditional mortgage. Remember, unlike a traditional mortgage, the lender is recouping ZERO money until the payoff. So they just have a giant growing receivable on their books that is not guaranteed to be paid in full at an unspecified future date. The woman who's mother took one sounds like they chose a scam lender. A proper reverse mortgage does not grow anywhere near that quickly. A 100K reverse at 5% interest and let's say another 2% in fees for 7% a year balance growth, wouldn't grow to 280K in 10 years. After 10 years, it'd be slightly under 200K. Growing a 60K balance to 280K in 10 years would mean the interest and fees added up to around 17% which is nowhere near what proper reverse mortgages actually charge. At the end of the day, a reverse mortgage is not an INVESTMENT. It's monetization of your existing assets so you can live well for your remaining years. You are not intending to leave money for your heirs. You just want to spend every last dollar of your fortune and enjoy life before you pass. Your heirs should be fending for themselves and not depending on your inheritance anyway. If you want to leave leave something for your heirs, don't spend all your money before you die!
the scam begins when you purposely target senior and not tell them the whole story, and cajole them into a contract they would have not otherwise taken, fully expecting them to expire within a decent timeframe netting you huge profits on the house at the expenses of the remaining family members. If the people at the bank would have been more honest this whole thing wouldn't have this much of a stigma on it@@BigRedNutcase911
@@danquaylesitsspeltpotatoe8307 Do you guys like work for AIG or something? the smarmyness of this reddit style "well technically" bullshit is kind of gross.
@@BigRedNutcase911 it doesn't seem to me that the reverse mortgage companies have much risk at all. They have real estate as collateral and everyone is going to die eventually. Just because it's not an illegal program, it doesn't mean it's not a scam. At best, it's incredibly slimey.
Damn. We've had a reverse mortgage for 3 years now. It's been great. But I don't have kids or anyone that wants this place after I die. Meanwhile $800/mo taxes/insurance vs $2600/mo leaves me more for 'stuff.'
Glad to hear a positive on this. This isn't for everybody but I believe it's perfect for me. I worked my butt off all my life and it's time to enjoy it.
My parents considered a reverse mortgage a few times through the years. Thanks to church members, they never needed to do it. My dad is gone now, but my mother still owns the house outright and has some money in the bank to supplement her income. In reality the property isn't worth a whole lot but still would have been sad to not have a choice what to do when she has left us.
Aha, was in Five Guys getting a burger the otherday , 'Up town Girl' Billy Joel was playing, I remember it being released (1983) .... yep I felt ancient compared to the person serving me.
about five years ago we applied to this company. we were at the signing when we found out that it was unsure if my wife who is twenty years younger than me could remain in the home after my death.we were very lucky that the guy doing the signing advised that if we were unsure to not sign.we are very thankful that he was a very honest man . we didn't sign and are very happy it turned out this way.
If she was the co-signer she could stay in the house as long as she wanted as long as insurance and taxes were paid. The guy that advised you didn't know.
@@sunlite9759 you are right! However generally reverse mortgages are not available to "young" people for this exact reason... The bank is stuck with them until they no longer live in the home.
None of these horror stories happened to my parents. They were able to take out about 50%. They received it as a lump sum payment (I can't remember why they couldn't get the monthly payments). In the event, my mother died a couple of years ago. Her house was sold and the balance, $180K / $350K sale price, was dispersed to my brother. If there was a scam, I didn't detect it. And the company appears to have fulfilled the agreement without issue.
I agree. Up until these reverse mortgage commercials he started making, he was one of the "better" Hollywood celebs. He had a pretty squeaky-clean reputation that people liked. These commercials kind of ruined that for him.
In addition to everything you said, seniors, who are prone to long hospital and rehabilitation stays, can find their house foreclosed on because of unforeseen health issues that require being out of their house for a given period of time. Once they are healthy, the lender may already have initiated foreclosure proceedings. Even as seniors recuperate in a facility, they must concern themselves with the possibility that if they do not heal up quickly enough, their house will be toast.
That are certainly very unfavorable conditions you should not sign. So probably in the end you overpay (or in this case sell the house for less than fair value) like with most complicated insurance contracts.
@@steffenbendel6031 and these seniors are often blue collar and won't tolerate getting and paying for a recommended lawyer to review the contract and advise. they won't spend a few sheckels and the contract takes a million dollar home for cheap. so much for a long life.
They are told this upfront. It’s one of the five triggers for due and payable of the loan. People say they want to “stay in my home”. They assume the risk.
You know, I thought 💭 it was only ME who questioned WHY Tom Selleck would do these type of commercials. I would see these commercials, shake my head, roll my eyes 👀, and say to him “Tom, you should be ashamed of yourself!. A reverse 🔄 mortgage 💸is a scam!
This Is common in UK. Maybe you in USA have this type of deal. To avoid care home fees in the future your parents put their house Into a Trust scheme. They get old and infirm and go into social care accommodation. After their death the Council discover this clever scheme and tell your heirs it was done to avoid a legally enforceable debt so the care home costs are legally enforceable. The children cannot sell the house as the trustees have control. They find that the trustee company sold their trusts to another outfit which went bust after transferring assets to a company registered in the Cayman Islands. The children of deceased parents took three years to sort this out, and they had no idea their parents had done this with best intentions to protect their inheritance. The full story is on an episode of ‘Rip Off Britain’ on BBC tv.
Many celebrity actors have morals worse than a Somailian pirate. After watching Harrison Ford willingly take money for a movie which insults and makes fun of Indiana Jones... it's clear even when they're at deaths door they will trash their own legacy and reputation for a few dollars more.
I call it a "Reverse Inheritance". My mother had a reverse mortgage for twelve years. When she passed, the balance was much higher than the property value and went into foreclosure. My three siblings and I ended up with nothing, and the property had been in the family since 1939.
I had a friend who took out a reverse mortgage and it worked for him. He had a wife but no kids. HE HAD NO HEIRS! and that is the key. When he died at age 92, the mortgage company owned the house, but he didn't care because he got some extra money to spend and nobody would inheiret the house at a reduced value. Simply put, he didn't care.
That's the scenario I see that a reverse mortgage would work well. 1 - No heirs 2 - no more monthly mortgage payments to worry about 3 - You actually receive monthly or annual payments (based on your equity). 4 - once you die, just let the bank take the house, no one owes anyone anything, so who cares?? Seems like a win to me..
@@gc4644 Who cares about heirs? How are they "owed" anything or due any pay day? "No, grandma--you cannot increase your standard of living and comfort because it cuts into my inheritance." That is pretty shite behavior.
I have no children but I'd like to think if I did they would be gracious enough to allow me to make use of the assets tied up in my home to make home improvements or better my quality of life without whining "but what's going to be left over for us?".
Having recently dealt with being my mother's DPOA in her final years, this would be my advice for seniors considering their end of life financial planning. Take care of yourself FIRST. You do NOT owe your kids an inheritance. At the same time, don't leave your next of kin a chaotic legal and financial mess that they may not have time nor patience for. Get your will, living will and power of attorney documents in order and have a plan for liquidating your tangible property, namely your home. If you have ANY sort of debt, get it dealt with. Don't take out any new loans (including cosigning loans for kids or grandkids). If that means selling the house you wish to pass on to tap the equity in it, so be it. Your next of kin can more easily divide a pile of cash than they can a house or vehicle. They may also have to consider residential care for you if they can't take care of you. If your funds exhaust before your life does, they may have to put you on Medicaid, which won't accept you if you have thousands of dollars in non-liquid assets lying around.
This is such great advice! Both my partner and I lost our mothers pretty close together, her father passed years ago while mine is still alive. But the one thing we learned, that we already did not consider, was leaving behind debt that could negatively impact our kids. That will be the last thing either of us would wish to put on them, especially with the way the US economy is going, among other things. And stuff. Just like chests full of rubbish and stuff we may leave behind for them to deal with. We still have our garage full of boxes & old chests of theirs that we've yet to get the chance to go through and toss out. Found my older brother's original birth certificate in a pile of junk mail from some silly "psychic" lady my mom had been sending money to. It is the worst. We do not want to do the same to our kids.
Even in Canada with free medical you get dementia or alz. or can't care for yourself physically, your property AND you pensions are all forfeit. I volunteer in my province on several levels : private housing, govt. supported, hospital and hospice end of life care, and the stories I get........
Ten years ago when I was a lad of 63 I went to a company with a name similar to the one Tom Selleck is a spokesman for. They supplied me with approximately 130 pages, most of which were confusing to me. One page I did understand stated that the closing costs would be $10,057, the interest rate was 5.17%, annual mortgage insurance was 1.25%, and the maximum they would lend was 46% of the property value. On the advice of my brother, who has an MBA degree, I declined their offer.
The reverse mortgages are dangerous to senior citizens. You get the money but if the senior for whatever reason leaves the property unattended for too long the reverse mortgage company will initiate a foreclosure if they find out. So say if 75 year old Becky Sue took one out but for some reason and she got really sick which resulted in a lengthy hospital stay. Becky got better but when she got home, all her stuff...things she's had for decades were at the curb with people picking over them. The reverse mortgage foreclosed on her property leaving her homeless. She'll have to go to either a shelter, stay with family, or be placed in an ol' folks home. This does happen. It's hard on the heirs to once the borrower dies. The reverse mortgage company makes it hard for them to sell or re-buy. If you want to re-buy you'd better have the cash right then and there or be able to take on a fresh new mortgage. The heirs have 6-12 months to make a decision and that's if their parents told them. If they are lucky to sell for a profit. They may not get much of nothing back. Once the reverse mortgage is took out it accrues interest until the owner dies but wait here's more, lol. Even though the borrower or borrowers have passed away you have to ask for a payout statement from the reverse mortgage company and the date you'll pay it to stop it from piling on interest. I don't personally like them. They put seniors at risk and their heirs. You have to keep your home maintained. The reverse mortgage also does checks to see if you're there and still alive. You also have to fill out paperwork every year and if they don't have it on file they will initiate a foreclosure. Please be safe ya'll.
Reverse mortgages are basically buying your home very slowly from you and not at the best price. You could have sold it off and bought something smaller / cheaper and had money left over. Plus a smaller/ cheaper home to give your heirs. It's such a crazy idea. Don't get me started on the Medicare plan scams. My MIL got money back... next year had to pay way more than the Medicare premiums. She just let it roll over not looking at all. SMH 🙄 when her sin foumf out he warned her to watch fir changes very carefully. Begged her to switch back...nope "I get money " um....most real plans now offer some money for things, but don't charge you more or give you crappy benefits. Mine, I pay in the Medicare premium and still get a great and better policy but I really shopped and compared when I started. Oh, I compared until my eyes strained so much. Also I stayed on the official Medicare website (her plan is not listed there, I wonder why🤔) I had done it for her too, but she eventually "knew better". Oops I got started 😂😅
@@thomasmeisch5692 I disagree. You literally just said they don't understand what they're signing. It's essentially the definition of a "scam". Which means to deceive and defraud. I personally, not in good consciousness could recommend them. I'm a firm believer in building and passing down generational wealth. I hope that you too, share the same sentiment. You see, I'd rather my children receive the fruits of my labor and inherit my property when I'm gone. Even if I don't have children, I believe in passing the wealth down to whomever I designated on my will, which in my case would probably be next of kin that I'm in favor of. I will continue to spread the word about reverse mortgages and other predatory lending practices. My life's passion is to educate others in making better financial and life decisions. Knowledge is power. Be the change you want to see. Let's work on leaving a better world for our children. They are the future. Please be careful and stay safe. Godspeed.
I'm nearing 40 and I wouldn't be surprised if celebrities from my youth are pitching this scam in a rebranded fashion to my generation in a couple decades!
When ever I hear Selleck telling everyone that his is not a scam to take away your house. I usually say out loud, “no it’s a scam to take away all the equity in your house.”
I have over 20 years of experience as a financial analyst, business intelligence analyst, and director of analytics. I promise you that reverse mortgages are a scam.
My mom did it less than 2 years before she passed away. House was appraised at 550ish, she got 320k cash. Each month the buyout price went up, so by the the end it was around 450k...has to sell within the year so couldn't hold out for a better price. Custom house personally designed for her with hardwood floors, ohia posts, rock wall, pasture for her horse, it had a straight on view of Mauna Kea...would have loved to have held on to it.
@@bigislander72 Yes, that is how it works, the buyout price increases b/c instead of paying the mortgage+interest every month, that was added to the amount of the loan. These loans are designed to benefit the elderly owner, not their heirs. If your mom had been scraping by trying to pay a regular mortgage, you wouldn't have had even a year before it went into default, you'd have had to pay the mortgage off before you could get any proceeds from the estate, which would have meant selling the house. Why didn't you spend the year arranging a mortgage so that you could have paid the buyout amount? That is a pretty excellent price for a house as you describe! In either case, you wouldn't have been entitled to get the house free.
@@dwightshreve4320 I don't know what happened in his instance but those contracts are filled with many clauses any one of which can be used. Among other things, you have to maintain the home to "THEIR" standards. That can mean something as minor as you cutting down a tree for which they did not give permission. It can mean something as minor as you painting the house a color they don't approve. It can mean your putting up a fence around a fish pond or installing an above-ground swimming pool. They are NOT written to give you any favors but to take advantage. If someone needs money badly, they can go to the bank and get a home equity loan.
@@GlennaVan mortgage lenders whether forward or reverse require that you keep your home insured. insurance companies require that your home is in an insurable condition. it's pretty standard stuff.
He's only done this video as this issue was on a recent Family Guy episode. Talk about lazy! And some people reckon Scott is the next Coffezilla? 😂 One of those actually does original research, they don't just watch TV to get ideas! 🙃
What is really sad is that my daughter was pushing me into getting a reverse mortgage. After sitting through a free meal seminar, I just couldn't fathom handing over 60% of my home's equity. Doing this would have prevented her from getting my house when I die. Sure, I'm not in good health, but I'm not going to just give away my house to these legal thieves! Reverse mortgages are really a scam in my opinion. If I had no beneficiaries, I would perhaps consider it, but once you sign on the dotted line, your house is no longer yours. Shame on such celebrities like Tom Selleck for posturing for selling snake oil. Hand the man a tambourine and a gold earring!
My mom was considering a reverse mortgage but she was getting very frail. I convinced her to sell her house and move into assisted living. With the money she got from selling the house plus her annual income she can afford to live comfortably for the rest of her life.
@@NTJedi Do you think that President Biden and Dr. Jill Biden or former President Donald Trump and Melanie Trump will sign up for reverse mortgages on their respective opulent homes? I bet that Hunter and Baron are hoping that their parents don’t!
@@NTJedi Yeah, right....if you have 800K equity in your house, but are cash poor.... just suffer and don't fix up your house with a $400K line of credit. (No monthly payments) Just live cheaply and leave the $800K to your sibling's children, having none of your own. Let them take trips to Hawaii after you die instead of improving your own life over the next 15 years or even thinking of taking a trip to Hawaii yourself before you die. How stupid are you to live poor now so young relatives can live high after your funeral.
Just read your local newspaper and you will find every week a listing of homes that have been foreclosured on for lack of upkeep on the home, taxes not paid, or the best one for a lack of equity left on the loan. Now I will say if you have a sizeable amount of money in the bank, no family or friends to leave your estate to, then go for it and enjoy the fruit of your labor.
One of the biggest scams that I see on TV is the commercial selling counterfeit gold buffalo one ounce coins. They talk about how the value of gold is skyrocketing so they limit the sale to three coins per household. Why is it a scam? Because the coins are made out of brass!
Ahhh, but they're electroplated with REAL GOLD ! Yeah, 1 micron thick. That would add up to about 3 nano-grams, worth about a nickel. If that thickness of gold were on a sheet of glass and you looked at the sun, you'd be blinded for life !
I buy gold and silver, and there's many commercials selling stuff like that. They were selling 1/4 ounce silver coins for like 20 dollars each . At the time silver was only 22,23 spot price per ounce. 😂
People are being scammed to buy gold. The government made it legal for citizens to own gold in 1980, I think. When the dollar tanks, as it will soon, they'll reverse that and confiscate your gold for worthless paper again.
Selling gold period is a scam. The government made it legal for citizens to own gold again in about 1980. When the bottom falls out if the dollar, as it's doing right now, their Emergency Moneitary Act, passed under Carter's presidency kicks in. It allows government to declare a emergency and confiscate all precious metals from Bank boxes and personal holdings. Say goodbye to grandpa's gold watch and grandma's silver service. If you don't turn it over in exchange for their worthless paper you become a felon.
so are you willing to pay everyone else's bills...how much more are you willing to pay in taxes? why shouldn't a senior use their equity to maintain their lifestyle?
They usually will have a clause that they can start foreclosure if you don't live in the house for a month. Which means that if you have an extended hospital stay, need to be in rehab, or go into assisted living, they will foreclose and take the house. You're not allowed to rent it out or even just have family live in it during that time. And remember, these are people likely in no physical condition to be selling a house, so most likely the bank will take the house and any remaining equity- this is what they are counting on.
I'm sure that there are unscrupulous companies that will absolutely try to do this, but fun fact: Just because you are in a hospital or a rehab while you recover, DOES NOT mean you no longer reside at your home. Assisted living or permanent placement in a nursing home is different - and my guess is that in most cases where the loan is called in this is the case, or perhaps the loan company thinks this is the case. One of the ways that these companies screen their loans to see if you still live there is to send you mail that requires a response. If no one responds and they cannot contact the borrower, of course they will foreclose. (Note: Under HIPPA, hospital are not going to tell the lender that the borrow is in their facility - there is literally no way for the lender to know what has happened if no one responds to their letter.) This may very well be the case in the situations where people temporarily in the hospital are foreclosed upon. Many senior citizens have no one to answer their mail and may be overwhelmed if they experience such a foreclosure, and simply not fight it, even though they would win. The bottom line: If you have a reverse mortgage be sure to have someone check your mail and be ready to respond to a letter from the lender so this doesn't happen.
My friend’s reverse mortgage allows her to stay in her second home in California as long as she stays 6+ months at her primary home in Washington state the one that carries the reverse mortgage.
@@karenkoe7096 My understanding is that they typically send a letter to the borrower at the property address asking for a reply. If they don't get one, they either assume they are no longer in residence or the investigate further. IMHO, most of the horror stories of evictions could have been avoided if someone simply responded to that first letter.....
As far as I know, the only good reason to get a reverse mortgage is if you're old and intend to spend your last years in your home with no intention of giving it to any heirs. But of course, these commercials are aimed at a far wider net of people.
guys? they were actors. they were spokesmen. they got paid to say what they said. they probably had no knowledge of, or interest in the company's practices. grow up.
My father didn't want to change any of his life. He was going broke living in a 4 bedroom house by himself with two 18 year old cars, a pool, a yard. He didn't want to do a reverse mortgage. He ended up doing a home equity loan and died before it was paid off. We paid it from his estate.
That's the best way to do it. But you need to apply for it before you retire otherwise you'll probably get declined because you don't have enough income to qualify. And it's best if you can get an interest only one since the payments will be less. Then just take some money from the home equity line out each month to make your payment.
First, nobody is owed an "inheritance". But these are ripoffs. My GF's mom looked at getting a "reverse mortgage" from AAG and I looked the paperwork over. Just the closing costs was 10% of the equity in the house. I didn't have to look any further than that to know it was a scam. I advised her to not do it. She looked into several other firms and they all wanted basically 10% of the equity up front in "closing costs". There is a special place in hell for these "celebrities" hawking these loans to old people.
Here is how I humbly understand it. I will not give every little detail 8:27 but give the overall workings as I can best explain. Said couple takes out a traditional 30 year mortgage loan of $150K to buy the equally valued house. They live in it as their homestead for 30 years. At the end of the 30 years ,they have paid off the original mortgage loan.....$150K + $150K in interest over the life of the loan. So they paid in total $300K. They are 65 (or whatever the minimum age is for a Reverse Mortgage) and take out a Rivers Mortgage on their house. The market value of the house at that time is $400K. The bank gives them the Maximum amount for the RM of $240K. They use it for different things (remodeling, fix issues in house, vacation, new car, etc.). Then at the age of 85, both the wife and husband pass. At that time, the market value of the house is $600K. The Heirs of the couple don't want to keep the home, so they sell it (they are allowed by law) for $600K. To satisfy the Reverse Mortgage contract agreement, they give the bank $480K.......which Nets the Heirs $120K. You can look at it as the Heirs "loosing" a separate $150K which is the Total Interest amount of the Reverse Mortgage. If you take that into account, they really end up in the Negative with losing $30K. So, if I'm looking at this correctly, there would only be a "lose" (by the Heirs) IF the market value of the house, at the time the couple dies, is $480K. They would technically not be gaining nor losing money. -- If the house at that time has a market value of say $400K, then the Heirs give the $400K to the bank after selling the house. The Heirs end up netting $80K. The bank ends up loosing $80K. As you can see, its a Gamble on both sides. It hinges mainly on the market value of the said house When the borrowers die compared to the sum amount of the reverse mortgage plus the interest accured during the 20 years (in this example). This is my humble view. I could be wrong on some points.
@@JohnPaul-ol5zl Kinda right with exceptions;the bank(so to speak) will not grant over 60-65 % of the appraised value to be available to the owners. The bank has an approximate 33% buffer to offset market change. There's other stipulations that come into place over the course of the mortgage but I only addressed your scenario. The bank has a buffer for their position and the owners have guards that can't be exceeded to protect them or the heir's. Like a traditional mortgage neither the owners/heir's can be responsible for loss of contract money in event of sale or foreclosure.
I considered getting one, did the math and just got a home equity loan instead. Sold the home some years later, mortgage and loan paid off, and I got a good pile of money out of it. The only reason I looked into the reverse deal at first was that there were no heirs to worry about, but a home equity loan or line of credit doesn't 'paint you into a corner'!
@deborahblackvideoediting8697 One of the main reasons ppl get a reverse mortgage is you no longer have a monthly mortgage pymt to make. That's a HUGE financial weight lifted off someone's shoulders, plus if you have no heirs it then makes sense to do it
You're not going to get a HELOC if you're on social security. Like any other loan you need proof of sufficient income to show you can reasonably repay it.
Another fun Tom Selleck fact: He stole 1.4 million gallons of public water for his personal avocado farm. I can't believe Higgens let him get away with that.
It is a scam, my mother lost her home to one. The house was mortgage free and a visiting nurse made the call. It was supposed to be a line of credit but they immediately paid her the maximum payout. My brother was apparently forging her signature and taking cash on top of all this. I live in another state so I wasn’t told about it until it was already in place. As the executor of her estate and having the POA one might find this a bit unusual. The safeguards clearly failed here. She clearly didn’t understand what she getting into. She then had a stroke which put her in a facility for over a month. The fine print of the loan clearly states that once you’re not in the home for thirty days that is grounds for call of the note. She ultimately lost the home in under two years.
No fool, it was the 2k a month interest for an eighty year old woman that didn’t know what she was signing. The thieving family member was a bonus. Have you stolen from your mother today?
While California has an entire department of "Elderly Abuse" the cops consider this a messy civil matter, and chasing these perps. is usually a complete waste of time. Cops ALSO dont' like to get involved in FAMILY issues, even if it's very clear fraud has occurred. As I age, I'm accumulating more and more stories like this: few seem to make the news, ..and it's getting a lot worse.
A realtor told me that a reverse mortgage was one of the worst things you could get into. Another realtor told me the same thing. Neither of these two people were trying to sell me a house or trying to get me to get a loan on my home. Why would they both say the same thing about this type of loan? BECAUSE YOU'RE GOUNG TO GET SCREWED!
@@bruced.370So the extremely routine scenario of expecting generational wealth to be passed down is "greedy"? That's a vapid take. Back to Reddit with you!
In the UK they are marketed as "Equity Release Loans", many people have found out they no longer own their home when their partner died, it's sold as a way to take money out of the home when you don't have an income to get a normal loan.
My Dad loved his reverse mortgage. .. When he died my siblings hated his reverse mortgage because he used and spent his equity. My siblings couldn't suck up his assets! It was hilarious!!!! Good for you Dad!!!
If the "family" lost 50% of the value of a home, how is that good for Dad or ANYONE! All you need is some good advice and sell the home for 100% of the value! The only reason your happy your siblings are mad is because your an ass.
Exactly, he used the equity in his home he built up during his working years to live out his final days peacefully. Why die with additional money in the bank? What is the point of that?
@@huckfin1598 Exactly, screw the family. Give 250 thousdand dollars to a corporation. The coprorations need your money to feed THEIR families! We should give more corporate welfare to corporations!
How tragically ironic that some senior citizen may find themselves needing the help of someone like Magnum PI in order to investigate the company being shilled by Tom Selleck. PS. Dope Hat.
@@coweatsman no one with half a brain thinks they are getting financial advice from an actor...some of us are able to put two and two together and realize that he is just a spokesperson for the company...lol to think an actor turned into a financial advisor late in the game and started running ads?!?! Jesus christ man, read a book or something XD
Some of the things I have learned in life is: 1) when your Dentist or Doctor says “this won’t hurt a bit”, it will; 2) when someone says “the extended warranty is worth it”, it isn’t; and 3) when someone says “it’s not a scam”, it is. If you truly need the money, you could sell your home for 100% of the value, take that money, invest it in an annuity to pay your rent in a downsized apartment and that money will probably outlive you. Sure you won’t have your home to leave to your kids, but at least you would have some of your equity left over instead of none.
The extended warranty is not true. I got it on a washer of mine. It broke, and it got fixed, no charge! My brother bought an Audi, and something was wrong with something on the dash. It would have cost him $1,500 for just the part. He said good thing I bought the warranty, as it was fixed with no charge! And the part and labor for my washer would have cost me much more than I paid for the warranty!
@@chicagogyrl4846 Assisted living facilities are another scam. They take about every dime of a person's social security and force them to sell assets and property. If you want to see your inheritance disappear, just put a senior in one of these places.
@@chicagogyrl4846You guys are the 14% who actually benefit from warranties. Thats the reason why these places pimp them so hard. 86% of the time its free money, and the times they do need to honor the warranty it doesnt cost a whole lot for them.
Absolutely a scam! We're going through this right now. My Mother in law took out a reverse mortgage years ago and has recently passed. The mortgage company (Novad) wants an insane amount to buy the house back from them if we want to keep it in the family. HUD says there's a way to SELL the house....you only have to pay 95% of the appraised value. Sounds good, right? WRONG!! HUD only gives you 6 months to sell the property but they (HUD) will give you the run around until the time expires. The house has to be appraised by the lender, not HUD. Plus all the paperwork and proof of death you must provide. We provided ALL paperwork within one month..... we're now on month FIVE.....still no answer. Remember, you can't sell a home you don't own....they know this. Now the Guv is getting a great house on a double lot in a vacation town. Makes me sick.
“They said have you heard of a mortgage, well this is the complete opposite. So they send you some brochures. It’s a picture of you with no shelter.” Norm Macdonald.
Gee, imagine how much worse these companies would be if they weren’t “regulated” by the government. Seriously, some people in Congress are getting kickbacks for allowing this.
I knew this for years. Maybe it's good for some people who don't have anyone to leave their home to. My neighbor just did this. He doesn't care to give his home to anyone.
I get calls regularly from people offering to buy my property. They usually have an accent not from my neck of the woods. Most of the time I just cuss them out, and tell them I'd give my property away before I'd sell to the likes of them, and counsel them to get a job where they can make a contribution to the good of humanity instead of trying to cheat people out of their hard-earned wealth.
Whenever I get any scam calls, I tell 'em "Sure I'll give you the money, can you meet me in the parking lot behind home depot tonight? Don't be alarmed about the baseball bat, it's there to protect myself."
I'm not sure what triggers them to start knocking, but at my old home, I would get nearly monthly post cards from different people offering to buy the home. If an offer was included, it was always hilariously low I'm talking like offers that would barely even cover the property taxes on that home. I laughed at first, then it chilled me thinking the only reason they'd continue to send these is that _someone_ is responding and selling to them.
Common sense should tell you that a ‘reverse mortgage’ is just that, a mortgage that has to be repaid with interest. No one gives you money for nothing!! 🤓
A reverse mortgage is a mortgage in reverse. You don't have to make payments to the mortgage company until you sell or die. But you do have to pay property tax and insurance.
First question I asked homeowners before taking their RM loan application is do you want to leave your house to anyone such as children or heirs. If they wanted to, I declined and advised this not for you. The loan has helped many seniors enjoy their last years with the equity they own, not their children. So many children don’t do anything to help their elderly parents, but would expect they’re more entitled to use the equity after parents are gone than their parents. It’s not for everyone, but it’s no scam! It’s a very helpful tool for seniors who need or want to spend their equity they worked for-not their children. You’re very biased and one sided with your information sir!
Sounds like it’s just another case of people entering a financial transaction without understanding what they’re doing. If you plan on leaving an asset to your kids, don’t pledge it as collateral to a financial institution under any circumstances
Or just tap the home's equity perhaps by well...selling it? The romanticism in leaving one's kids their home is overrated. They usually have their own lives by that point, possibly thousands of miles away.
@@scarpfish Rich people leave assets to their kids, and grow intergenerational wealth. Poor people leave nothing in a perpetual loop of eating the young.
It's not a scam but it is a tool the homeowner can use to stay in the home if they need to free up cash flow by borrowing against the equity. A mortgage is a scam if you think a reverse mortgage is a scam. So yeah I kinda agree with you to some extent.
@@spookrockcity Well, there are many stipulations that seniors have to meet when they get a reverse mortgage. They must keep up with the maintenance of the home, property tax and homeowners insurance have to be paid in a timely manner. If it isn't they will initiate a foreclosure. They will also foreclose on the home if the senior spends a significant amount of time away from the property. Many seniors have got these loans, got sick with lengthy stays in the hospital or rehab and only to be found homeless once they get ready to come home. These reverse mortgage companies do send people to go "do checks". This has been documented. Every year the senior has to fill out paperwork saying that they're still alive.
A friend of mine did a reverse mortgage, used the money to live on, and when she could no longer take care of herself she had no money for assisted living and had to go live with a daughter who resented her. Of course her home was taken and she had nothing but a small Social Security income, which I suspect her daughter took to cover her mother's expenses. My friend was miserable during her last years, feeling she was unwanted and very lonely. I dont understand why these mortgages are legal.
To, @carolhudson9675 : May the Lord embrace your friend's spirit. It is unfortunate that this is part of how America operates. I'm a 64 year old black man and have heard of this happening to a few people in my community. The mortgage company and your deceased friend's daughter sound like no good ass-rats!
As a senior, when i recently read how Tom was worried about losing his ranch because of the cancelation of Blue Bloods, I got a little chuckle from the comments that he should call AAG.
I lost some respect for Tom Selleck, have watched him since the Magnum days. He certainly doesn’t need the money. I feel these Reverse Mortgages are terrible for seniors. You will probably end up with nothing!😢😢😢😢😢😢
Um, that's how reverse mortgages work. You are literally living in your home while someone is buying it from you. You die? They take the property. Normal buyers of your home expect you to vacate on an agreed date usually right away.
@@tonycrabtree3416they underpay knowing people are desperate. They target vulnerable people and they Indeed do take your house when you die. There's nothing wrong with the idea per se. If you don't want to leave your house to anyone, if you know you don't have long then it's a good way to get cash. The fact is they are massively miss sold. As said they target the vulnerable, those in need of money. They deliberately obsfucate their terms and conditions. They are shady at best. There is a use case for them, but that use case is for a select group of people. I'm not going to pretend to be up in US law but here in the UK they've been massively regulated because they were in effect stealing people's houses. The fact that in the US you are getting charged for your medical care makes it worse.
If you have a reverse mortgage and need to move to a memory care facility, you lose your home, which could have been used as a rental (or sold) to offset the enormous cost of caring for a dementia patient.
Most assisted living facilities if you have enough equity will take your home and allow you to live in their facility until you die…if you outlive the equity then you go on Medicaid. But only if you have enough equity to satisfy them to begin with. They may transfer you to a Medicaid facility if they won’t get enough money to pay for your expenses.
My mother-in-law got a reverse mortgage on her property in the early 2000s. The house was free & clear prior to that reverse mortgage. She had just been diagnosed with lung cancer. She was able to use the proceeds of the loan to do many long-time needed repairs to the house. Thankfully the bank waived those items during the home inspection (as part of the reverse mortgage process) because they knew she'd use the proceeds to get that work done. She died within about 1-2 years after getting the reverse mortgage. Of course the house had to be sold, but it saved us having to front all the money to get that work done before we could sell the house. It did impact the equity, but it was highly beneficial in our case. Since she died not long after getting the mortgage, the interest hadn't grown too bad. I have nothing bad to say about the reverse mortgage in our case. Full disclosure: I worked in 2nd mortgage marketing (but not reverse mortgages) in the late 1980s, but haven't worked in any kind of lending since 1990. My income is not depending on any type of lending.
Seems like this is a niche financial instrument (like stock options) that is usually risky/counter-productive but is occasionally very useful and the proper course of action.
So Billy, you know that no loan is ever granted based on a "promise" of action on the part of the borrower. The numbers the lender could live with were based on the ordinary HECM formula. Age of the borrower, value of home. Glad it worked for your family. Sorry for your MIL
It's nice to see a well thought out answer instead of the usual parroting of XYZ is bad when people don't make the effort to understand what they are condemning.
I've been telling people for years that the idea of a reverse mortgage is to put a lien on your home that MUST be paid in full when the last person on the mortgage leaves the home. What that means is that if you think that you can leave your home to your family, they must have the FULL AMOUNT owed when the person who received the reverse mortgage dies or must go into a nursing home. Most heirs simply can't afford that so the house must be sold to satisfy the money owed to pay off the reverse mortgage. The only time anybody should ever even contemplate a reverse mortgage is if they have absolutely no choice.
So it's only a "scam" because you were counting inheriting the property in question, right? The thing about inheritances is nobody is guaranteed one and no one is obligated to bequeath one. Maybe it's not up to you how your parents or grandparents use their assets.
@@sarahdawn7075 Did you even read what I wrote? I clearly wrote that if you need the money and have no other choice, do it. I'm just not in favor of selling the future of your family just because it's easy to do and you want a larger bank account. I have no parents or grand parents, they're dead and buried. You should not project your own prejudices and ideas on others. It makes you sound ignorant and uninformed. Every word I wrote is objectively true.
When I was working in real estate a loan broker tried to sell me on reverse home mortgages for my clients who would qualify. Fast forward, she's over 70 now and lives in an RV. That worked out well.
My parents got one of these several years ago when my mom became very sick and they needed the money. She has since passed but my dad is still alive. Three times in the last five years the reverse mortgage company sent a letter basically to my dads estate saying that since he had died the home need to be sold quickly. He is still alive and driving himself all over town!!! The latest scheme is last year for the very first time they for some reason paid the homes taxes and since he hadn't paid them back it was in violation of the contract and the home needed to be sold quickly!! That year he had gone down to pay his taxes and been told they had already been paid! Strangely the tax office was unable to tell him who had paid the taxes! My dad thought it was probably me or one of my three sisters.
Big companies have systems in place that can get carried away. I would not assume any human intentionally did those things. And I am guessing you got it straightened out, right?
I’m not surprised that Tom did this . I’ve never been a fan and when I saw those commercials I thought it was a scam , but didn’t know all the details. Thanks for uploading this video.
I've been dealing with the "we will buy your house for cash NOW" scam since I was in my early 40's. But I'm sure it will continue to get worse as I get older. I'm hoping that my generation (gen X) and younger are smarter than the older generations are about these scams. Because we were raised in a world where you don't trust people. The older generations thought everyone was good and honest. Anyone under 60 should know better from what they saw growing up and in their adult lives.
And, if you can't afford to keep your current house, you can look for an alternative, such as an over-50 community; pay a realtor to sell your home and use the proceeds to finance the purchase of a new dwelling (and if you use the same realtor for both, you may be able to negotiate the percentage the realtor takes).
@@vickieclark5931such a sad state of society. I’m that older generation you speak of. And yes, I grew up believing the Vast Majority of people were honest and just trying to get along like us. Yes, there were those who scammed and lied but they were the exception. Now? I think the crooks are taking over.
The truth is they buy your home with a loan with high interest rates. Reverse mortgage means YOU HAVE SOLD THEM YOUR HOUSE CHEAP. You are no longer a home owner, but you have the responsibilities of a home owner in a house that’s not yours. Pay taxes, insurance, EXPENSIVE RENOVATIONS etc… there is no house to inherit.
I applied for a reverse mortgage from AAG and the appraiser that was selected by THEM was so incompetant, I did a complaint against the idiot, and got his !icense revoked or suspended. This was in N. California.
Kay's mother took a class on how this works. The daughter was welcome to attend as well. This happened because they didn't pay attn. If you want to leave equity to your kids then dont do a reverse mtg. I don't have kids but getting rid of my mortgage for the rest of my life till I die is a great option.
My aunt and uncle owned what we all thought of as the family home, and they were quietly talked into one of these late in life when medical bills started to pile up (they were "good conservatives", grew up pulling themselves up by their bootstraps). Needless to say when they died, even though they had a will that bequeathed the house to my cousin, because of the reverse mortgage the bank took everything, and auctioned off the house. There were several of us in the family who wanted to move into the home, but unless we were able to outbid someone else at the auction that wasn't going to happen, and the family home we all visited for 50 years, was gone. Now owned by someone else.
It sounds like your Aunt and Uncle were good people, but they just didn’t want to give their house to you or your cousin. That’s ok, they can do whatever they want either way their property. I wouldn’t be mad at them.
The minute you sign a reverse mortgage it means that company will eventually take ownership... UNLESS you're willing to pay them back all the money and much more money.
@@johnlawrence4975 It sound more like they did not understand the contract they signed and thought the heirs could take over the contract. They did not read the fine print that if either of them moves out, it reverts to the company.
If you were aware of your grandmother's financial situation you should have paid your grandmother the money she needed for support in exchange for her leaving you the house.
I am so pissed off at Selleck for promoting these Reverse Mortgage scams My own stepmum went 200k+ in the hole after she took out a Reverse Mortgage that was then used an ATM for Jamaican Scam Artists I wrote to EVERY AG in the US and none of them would stand up to these Reverse Mortgage Scammer Companies My Stepmum is a big fan of Tom Selleck
Family Guy skit on this scam: ua-cam.com/video/VKAl9UkgRKc/v-deo.html
Part 2: ua-cam.com/video/OKJN3CReF60/v-deo.html
Elderly poverty is a real thing. I understand where you’re coming from on this video but you have no other solutions to present for the problem. Elderly poverty is a problem and not qualifying for a regular forward loan is also a problem.. instead of just ragging on a federally backed mortgage program, maybe we should
Discuss how social security hasn’t recieved a raise in decades. Or how pensions are no longer a thing. Or how 401ks aren’t the retirement vehicle that people are banking on them to be.
Reverse sucks. But as an elderly person, not being able to afford meds, gas, food.. that sucks a lot worse than not passing on something to some heirs that hasn’t visited in decades. #justsaying
I was literally watching this today
You made me learn more about this - the guy who originally came up with this concept in 1961died recently: "Nelson Bernarr Haynes, 88, died at home on Sept. 8, 2022"
It appears the idea started in good faith, but like most things humans touch - turned into shit.
Smh that's how I ended up here
The problem is, the people who need to learn about the problem the *most* do not watch "Family Guy" or the podcaster.
my grandparents have dementia, and in their early stages they almost got scammed by a scam specifically targeting the elderly. thankfully they realized something was fishy before sending money, but targeting old people is a special kind of shitty
Where i live it's not uncommon for old people to hand over the handling of financials etc to their children before old age, dementia etc makes them make bad decisions
@@tomlxyz yeah, my uncle now takes care of their finances, but this was in the early enough stages that they still would have had the ability to buy gift cards to give to one of these scammers or something
and it's getting a lot worse as our population ages in Canada, the Uk, Europe,and the UsA. their accumulated wealth from a healthy economic world since WW2 means they have the "kash" and the sharks are circling.
And it set up so the government gets their cut
If someone is diagnosed with dementia then either a family member or appointed guardian should takeover all legal responsibility for these affected seniors. Any phone call or home visit from a business would therefore not be legally binding.
Again, good work. Tom Selleck is worth at least 45 million and at 78 years old I think he has enough money to live well until his death....without scamming people that are not as lucky as he is!
Never underestimate sheer greed. Also, Selleck may be an investor in this company. 😳
You praise Scott like he was the first recently to alert people to this issue. He literally got the idea from the recent season 22, episode 3 of Family Guy
older people that need this information don't usually watch family guy. This is a factually researched investigation, not everyone would believe a family guy cartoon@@dftfire
He's a Republican. Need more be said?
no Tom, I don't trust you. fuck you for ripping off seniors.
When an ad starts with "look, no one is trying to steal your home...." you'd better believe they're trying to steal your home.
Selleck is an actor. That is, a paid liar. Just like Reagan, who legalized this scam, was.
Yeah. It’s like when your boss starts out”I’m talking to you as a friend not as your boss. You know yep it’s time to brush off the old resume because he she is talking to you as your boss.
@@lorannamoody7011 biz isn't personal NEVER get personal with the one who PAYS you
@@lorannamoody7011 No, it's because clowns like the guy in this video lie about something they know nothing about!
To the contrary, Tom. _Yes, this actually is another way for the bank to get your house! !_ 🖕
I heard Tom Selleck in those AAG ads for years. His pitch sounded all friendly & harmless. But what I was paying attention to is how 1. this type of loan demands putting hard-earned equity at risk. 2. No inheritance for the kids 3. A suspicion that the sum of "payments" made back to grandma are ridiculously small compared to when the company takes possession of the house & resells it for profit
People dont seem to realize how predatory banks are. At some point back in the 50s banks started talking people into committing themselves to a 30 year mortgage to pay for a house. A 30 year mortgage was unheard of. Theyd seen how the saving habits of Depression Era children (whod become adults) enabled them to pay cash for land & houses, & they found a way to help themselves to all those alluring savings accounts, swelling with account-holders hard earned cash
"Reverse mortgages" are just another way of these banking scumbags to get at wealth they never earned, same as before back in the 50s. The tactic changed, but the motive is the same, & so are the results for the victims
My boss is a multi millionaire. He always says : " If someone is coming to you, in order to sell you something, he is there for his benefit, not yours!"
Yep, a very long time ago I learned to not even bother answering my phone unless it's a close relative I trust. I learned to not respond to any emails from strangers, any letters, anything. I am a man, I know what I want, and when I want something, I seek it out. It will be there, it always is, or will be soon enough.
Thanks a lot for the advise.
I’m middle-aged, with the exception of a small inheritance from a distant relative, I have yet had anybody come to my door or mail me a letter wanting to give me money. I haven’t even gotten an email from a Nigerian prince. Every business in existence has one goal, and that’s to take your money from you. When I see commercials or print ads about something that’s appealing, I try to remind myself of the same thing. Businesses put their advertisements in front of us because they know it’s the same thing as putting candy in front of a kid.
Yes and no.
Of course 😂
About 5 minutes in and want to share my story:
In the 90s my mom almost got one of these- she wanted to retire and buy a condo or house in Florida, to be near our Caribbean relatives. I was home on college break and read through the contract. I told her what could happen and to just sell the house. The reverse mortgage at that time offered 80k; my mothers home in Bed Stuy was worth 3- 4 times that amount.
Talk to your grandparents and parents, people- and see what they are up to
Congrats, smart move
@@danquaylesitsspeltpotatoe8307
This is a wild take… reverse mortgages are absolutely a predatory lending practice. People don’t do it to “enjoy their money,” they do it out of desperation. Do you find it amusing or karmic to see elderly people standing in food pantry lines or homeless? Because that’s what happens when their reverse mortgage runs out, they can’t pay it back and they subsequently lose their home. It’s not just about inheritance it’s about a person who is usually in no position to get out of the loan by picking up an extra job and income. Lose lose = scam
How is this a scam at all? The reason the only offered 1/4 of the property value was for her to maintain as much equity as possible, looking out for the borrower. Jesus people are so uneducated financially
@@ShaferScottnow why don’t you reply to the comments calling out you presenting this as a a scam when it is not?
@@jheden9386 because that’s just their opinion, and I don’t feel like trying to change their wrong opinions
I used to work for a company that sold consumer and property data to realtors. People have NO IDEA how shady that industry is.
I get a postcard from Homevestors (scam / ripoff) about once a month.
As Mad Magazine said, " You need 20 years experience selling used cars to be crooked enough to sell real estate."😅
@@johnchandler1687 You could also reverse that and it would be just as true or even more so.
@@ThisIsTheMajor sir, this is a Wendy's
@@johnchandler1687 I'm a real estate agent. I did things like talk a couple out of selling a home they just bought as they would lose so much. The next day they listed it with another agent and it sold the next day. Don't believe everything mad magazine says. Now used car sales men... another story.
you always know you can trust someone when they tell you specifically "trust me"
All you need to know is it’s “Safe and Effective” and we’ll ruthlessly censor and vilify anyone who says it isn’t. That’s how you know you can trust us.
Wait….are we still talking about Reverse Mortgages? 🤔
BINGO! RUN like the wind!
Honest John's Used Cars. 😅
One of Ronald Reagan's best messages: About the scariest thing you could ever hear is someone saying "trust me, I am from the Government and I am here to help you"
Didn't he sign off on the reverse mortgage bill?
Thank you for covering this. What kind of greed inspires taking advantage of old folks? He has disgraced himself in my opinion.
Before you get all upset let me tell you several different stories about people who have gotten reverse mortgages. It isn’t a great financial tool but if you cheat a little bit it can be , 3 different family members have gotten them , 1 didn’t want to pay payments anymore, 1 bailed out her daughter bills and 1 didn’t want house payments anymore. None of them lost their house BUT they also had children who were indifferent and ignored their parents and their needs . The 2 that made out terrific rented the property out to family members only and moved to their vacation homes. The 1 that didn’t do as well was robbed by her grandkids and refused to press charges so they were stuck with thousands of dollars in C.C. debt from her own grandchildren. As far as leaving money/ inheritance to kids who don’t come around , don’t help with anything and have the nerve to expect money- your really something….
On a smaller scale, actors selling car warranties that cover “everything” are full of clauses that don’t make these worth it.
When I asked the car warranty folks to send me a copy of the policy that I would be paying for they were surprised and reluctant. After reading it, I declined to purchase it and participate in their program.
I'm sure Vivica and Iced T have this contract. They can't afford car repairs, Lol@@HaroldBrice
When the actress spokeswoman first starts calling us MY DARLINGS I knew it was a scam...Then she said she was known for her beautiful hair which is in fact a WEAVE...Ha! Ha! Ha!....What she does not tell you is that the auto shop you bring your broken car to will charge you to dismantle the engine to see what the problem is...once the problem is identified the company pays for all the required parts, but you have to pay for the mechanic to put the engine back together...100% SCAM which prays on the black community.@@HaroldBrice
I know people that do the mechanics work in my town, they say that they won't accept these car fix insurances because the reimbursements are too low.
i.e. Carshield
When my mother died I wanted to pay off the reverse mortgage my father took out before he died. I had the cash. Champion Mortgage refused to talk to my lawyer or banker. They wanted the house! They filed for foreclosure! After six months the bank simply sent them the amount they thought would be the pay-off amount (over the six months the interest and fees kept accumulating). It was a horror story.
I just went through the same thing when my father passed. didnt know he had one and it was a nightmare getting it resolved. They filed foreclosure and took me to court since I was the sole heir.
I tried to buy my dad's house in the villages. Same story. Now it's worth 340k. Unbelievable. And they sold him the idea so he wouldn't have to trouble his kids about money. I hope there is a hell.
Did you try to do so before your mother died? And if not, why not?
There is something else going on here---if you had a lawyer, why didn't you sue? Banks don't just pay off mortgages, forclosure or not. And yes, your dad should have informed you about the terms of the mortgage. I wonder if this really was a reverse mortgage.
They're evil, Chase took our home in 2013 during Obama. We should've got that deal where they go by the income you have, instead they told us to be out in six months. So we got mum and dad to loan us money and got a mobile home
There's one thing you must never forget, Actors Act.
Doesn't seem like to many people realize that actors say what they are paid to say.
Or in the case of Eric Estrada, TRYING to act!
Actors are paid to sell products regardless if they believe or have ever used that product. There needs to be more "TRUTH IN ADVERTISING LAWS" that require a person advertising a product has actually used that product. That will probably never happen. So, they continue to praise the product hoping the viewers will buy that product.
Actors Lie!
Actors ACT like they care.......they don't They are vapid , self centered,
phony snobs in everything they do
Makes me wonder..what is the price on his integrity?? I bet it's big!!!
As soon as I started seeing this commercial, I knew that it was a scam so this is of absolutely no shock to me
any commercial longer than 3 mins is a scam
An acquaintance of mine had a reverse mortgage. There was this appalling clause in the contract that stated if the owner was involuntarily out of the home [hospital, nursing home] in excess of 30 days, it would trigger foreclosure. She was hospitalized, then sent to a nursing home and her home was taken.
You should see how surprised I am that banksters are hard criminals.
And the payment stops, these terms are designed to stop payments asap
Hire a lawyer, go through the fine print in any agreement that involves a lot of $$$. A $500 investment in a lawyer could save you many thousands of times that
@@TheGuruStudthat's anti-semite
@@kaisersoymilk6912 I mean, I id not even think of it that way.
I think that's on you bud, lol.
Rule number 1: If someone says “trust me”, DON’T! (Just get a home equity loan or talk with your children about your situation first.)
An old George Carlin Joke: In California, "trust me" means "phukk you."
This is a home equity loan
Just because it's "government regulated" doesn't mean it's not still a scam.
I mean when the government is involved you know you’re gonna get ripped off
That is what that means.
Remember the scamdemic?
If it's government regulated it almost certainly is a scam. No bigger scammers than your own government.
If people can't see this after the last few years of hell, then they probably never will.
Exactly, kind of like bitcoin.......
I don't understand why Tom selleck agreed to be part of this scam. $ and greed is really very strong.
Anytime a washed up actor or athelete trys to sell you something in a commercial. Do not go for it.
You need to tell Payton Manning that! That huckster will sell ANYTHING!
Except tom Selleck isn't washed up. He's making 4 or 5 million a year from Blueblood's alone + he's worth a 100M. Why he's risking his reputation on crap like this is just crazy.
You need to tell Joe Namath, always selling additional Medicare benefits, which are also scams, and people who have fallen for it have said it was a waste of money.
When I saw my man Ice T i knew dis be da real deal, yea for Morons only !
It's always buyer beware, I don't care whose selling it!! They are actors whether they are high profiled or not! They are making money acting!!
My mom's friend did this. She was told to make home improvements, so she did. She passed away and they took the house, with all the new upgrades. Kids got nothing. Mom's neighbor did it too. She passed and her caregiver son suddenly became homeless. What a scam.
Reverse mortgages are not for everyone. Its not for people who have kids who are expecting an inheritance, its for people who have no heirs, so they can live better in their later years.
Reverse mortgage is a cheap way to get your house for next to nothing
She did the upgrades. If they want them, they can wait till it is their house.
Did they violate the terms of their contract? Maybe plan better instead of getting old and whining when you realize you didn’t prepare for retirement.
@@deeandrews7051 or people who don't want to leave anything to their money grubbing kids.
When I first heard about reverse mortgages, my mind remembered what my Dad said many times: "If something sounds too good to be true, RUN LIKE HELL!" I had no idea until watching this video just how bad these things are.
You must not be very smart
If you can't run, walk! and don't answer the door, don't t answer the phone if you don't recognise the caller and don't open email from strangers. Unfortunately, elderly people grew up in a time before the demons were unleashed. They're running riot.. Don't be naive!
But Tom confidently insisted reverse mortgages were not too good to be true 😂
@@karlpierce3035
Don't you have anything better to do than go online and throw insults at random people based on nothing?
Its not too good to be true. They are selling their house. Its a lot of money they can spend on themselves instead of leaving it to rotten children who don't want to work.
My 'cousin' took one. They appraised his place at $200K 20 yrs ago. Gave him
$100K cash, per his request, and $770 mo. for the duration of his life.
He collected this for 15 yrs. Passed away in 2022. Looks like he cleaned THEM
out on this one, according to MY "arith."
B.S.
But they got his 200,000 house for half price right.
@@joycemayfield2690 they got his $200,000 house for approx. $238,600. Based on $100,000 up front and & $770 a month for 15 years
That story is crap. OR your cousin lied to you after he discovered his ERROR, but was afraid to admit it.
That’s exactly how it’s supposed to work and what the mortgage insurance is for.
It's a shame that too many people confuse the actor with the characters they play, and trust their advice. No one ever gets anything for nothing, there are always strings attached.
Lawyers call those strings "Conditions subsequent."
You're very wrong ... the banksters get everything they want, for nothing. It's been going on ever since the Rothschilds took over European banks, and pushed through the Federal Reserve Act---meaning for them: Free Money. Banks create money out of nothing, lend it out, and charge interest ... which is the same as creating money from nothing.
When he endorsed Donald Trump I lost a lot of respect for him. With this ad, it's gone.
@@patricias5122
Would you be happier if Tom Selleck endorsed Joe Biden this time?
@@kensellers4082 Maybe he should endorse neither!
My brother stole 70k from my elderly Father. My dad took out a loan but the loan payments were too much so he took out a reverse mortgage. It was a lower interest rate and he was only going to pay off what was owed. Welp, he got 140k and after he paid off the loan my brother then stole the rest of the money. So, thats the house. And I'm the POA so get to deal with all the legal s**t now. Beware of family and friends.
Why is your brother not in prison?
How could your brother steal money from your Dad? Did he keep money in his house or something??
Family can be awful.
ours is 1.5 million US in 1997 dollars. I didn't find out until dad passed in 2015, but he kept very accurate records. Filed a "compliance file" with the IRS. They were helpful, but blanketly told me "if you don't hear from us in two years, you're not going to". Too many other scams going on.
@@williamwhite9767 our was non linear dementia: dad thought it was HIS idea. for a few days. by the time he comes to his senses, the money is long gone.
When I lived in Florida many years ago, I dated an older guy who owned a large home in a very good area. Not right on the beach, but not far from it. He had money, so he had already moved into a smaller apartment. He had been considering a reverse mortgage on his house. I asked him about how complicated that was and the potential downfalls. Ultimately, he decided to sell his house and take the money. That way he was done with it and no one could take it away from him.
Smart move
@@ShaferScott Reverse mortgages are not a scam. They are just another misunderstood financial instrument. The purpose of the reverse mortgage is to monetize your home equity today to allow you to live out your twilight years while still living in your home. If you are taking one out, you are purposely intending to NOT leave your home to your heirs. A reverse mortgage company is not paying half off for your home. They are lending you money today and expecting it to be repaid only upon your death and/or eventual sale of the home at some unknown date in the future which can be 2 years or 20 years from today. That is insanely risky for a lender which is why the interest rate is higher than a traditional mortgage. Remember, unlike a traditional mortgage, the lender is recouping ZERO money until the payoff. So they just have a giant growing receivable on their books that is not guaranteed to be paid in full at an unspecified future date. The woman who's mother took one sounds like they chose a scam lender. A proper reverse mortgage does not grow anywhere near that quickly. A 100K reverse at 5% interest and let's say another 2% in fees for 7% a year balance growth, wouldn't grow to 280K in 10 years. After 10 years, it'd be slightly under 200K. Growing a 60K balance to 280K in 10 years would mean the interest and fees added up to around 17% which is nowhere near what proper reverse mortgages actually charge.
At the end of the day, a reverse mortgage is not an INVESTMENT. It's monetization of your existing assets so you can live well for your remaining years. You are not intending to leave money for your heirs. You just want to spend every last dollar of your fortune and enjoy life before you pass. Your heirs should be fending for themselves and not depending on your inheritance anyway. If you want to leave leave something for your heirs, don't spend all your money before you die!
the scam begins when you purposely target senior and not tell them the whole story, and cajole them into a contract they would have not otherwise taken, fully expecting them to expire within a decent timeframe netting you huge profits on the house at the expenses of the remaining family members. If the people at the bank would have been more honest this whole thing wouldn't have this much of a stigma on it@@BigRedNutcase911
@@danquaylesitsspeltpotatoe8307 Do you guys like work for AIG or something? the smarmyness of this reddit style "well technically" bullshit is kind of gross.
@@BigRedNutcase911 it doesn't seem to me that the reverse mortgage companies have much risk at all. They have real estate as collateral and everyone is going to die eventually. Just because it's not an illegal program, it doesn't mean it's not a scam. At best, it's incredibly slimey.
Damn. We've had a reverse mortgage for 3 years now. It's been great. But I don't have kids or anyone that wants this place after I die. Meanwhile $800/mo taxes/insurance vs $2600/mo leaves me more for 'stuff.'
Glad to hear a positive on this. This isn't for everybody but I believe it's perfect for me. I worked my butt off all my life and it's time to enjoy it.
My parents considered a reverse mortgage a few times through the years. Thanks to church members, they never needed to do it. My dad is gone now, but my mother still owns the house outright and has some money in the bank to supplement her income. In reality the property isn't worth a whole lot but still would have been sad to not have a choice what to do when she has left us.
I love it when knowing who Tom Selleck is means you are probably a senior citizen. 😘
Quigley Down Undef
Aha, was in Five Guys getting a burger the otherday , 'Up town Girl' Billy Joel was playing, I remember it being released (1983) .... yep I felt ancient compared to the person serving me.
I'm 30 and literally only know who this man is bc he played Monica's boyfriend on, "Friends" 😂😂😂
Dang It! I used to watch magnum reruns, and i'm just 27
I’m 22 and I grew up watching Magnum!
about five years ago we applied to this company. we were at the signing when we found out that it was unsure if my wife who is twenty years younger than me could remain in the home after my death.we were very lucky that the guy doing the signing advised that if we were unsure to not sign.we are very thankful that he was a very honest man . we didn't sign and are very happy it turned out this way.
So John, what DID you do?
You did not even have to die for her to get kicked out - only go to a care facility! The contracts usually say "if you leave the home" not die.
If she was the co-signer she could stay in the house as long as she wanted as long as insurance and taxes were paid. The guy that advised you didn't know.
@@sunlite9759 READ THE FINE PRINT!!!
@@sunlite9759 you are right! However generally reverse mortgages are not available to "young" people for this exact reason... The bank is stuck with them until they no longer live in the home.
None of these horror stories happened to my parents. They were able to take out about 50%. They received it as a lump sum payment (I can't remember why they couldn't get the monthly payments).
In the event, my mother died a couple of years ago. Her house was sold and the balance, $180K / $350K sale price, was dispersed to my brother. If there was a scam, I didn't detect it. And the company appears to have fulfilled the agreement without issue.
Had one for 15 years. No problem yet! 😮
Bingo
Works for some.@@emmettmortgage
I often ask myself why Mr. Selleck would risk his reputation representing these grifters.
His new yacht....
Greed.
I agree. Up until these reverse mortgage commercials he started making, he was one of the "better" Hollywood celebs. He had a pretty squeaky-clean reputation that people liked. These commercials kind of ruined that for him.
He's old and doesn't need his reputation for anything else.
@@hugokatz lol..true.
In addition to everything you said, seniors, who are prone to long hospital and rehabilitation stays, can find their house foreclosed on because of unforeseen health issues that require being out of their house for a given period of time. Once they are healthy, the lender may already have initiated foreclosure proceedings. Even as seniors recuperate in a facility, they must concern themselves with the possibility that if they do not heal up quickly enough, their house will be toast.
That are certainly very unfavorable conditions you should not sign. So probably in the end you overpay (or in this case sell the house for less than fair value) like with most complicated insurance contracts.
@@steffenbendel6031 and these seniors are often blue collar and won't tolerate getting and paying for a recommended lawyer to review the contract and advise. they won't spend a few sheckels and the contract takes a million dollar home for cheap. so much for a long life.
@@bigtime911 A Trust was set up. It didn't do much to prevent the mess.
They are told this upfront. It’s one of the five triggers for due and payable of the loan. People say they want to “stay in my home”. They assume the risk.
How do these lenders find out that someone is out of their home?
You know, I thought 💭 it was only ME who questioned WHY Tom Selleck would do these type of commercials. I would see these commercials, shake my head, roll my eyes 👀, and say to him “Tom, you should be ashamed of yourself!. A reverse 🔄 mortgage 💸is a scam!
This Is common in UK. Maybe you in USA have this type of deal. To avoid care home fees in the future your parents put their house Into a Trust scheme. They get old and infirm and go into social care accommodation. After their death the Council discover this clever scheme and tell your heirs it was done to avoid a legally enforceable debt so the care home costs are legally enforceable. The children cannot sell the house as the trustees have control. They find that the trustee company sold their trusts to another outfit which went bust after transferring assets to a company registered in the Cayman Islands.
The children of deceased parents took three years to sort this out, and they had no idea their parents had done this with best intentions to protect their inheritance.
The full story is on an episode of ‘Rip Off Britain’ on BBC tv.
Many celebrity actors have morals worse than a Somailian pirate.
After watching Harrison Ford willingly take money for a movie which insults and makes fun of Indiana Jones... it's clear even when they're at deaths door they will trash their own legacy and reputation for a few dollars more.
Then he shows up on a shitty show called Blue Bloods
No it is not. Learn the facts before you comment.
Reagan signed it into law
I call it a "Reverse Inheritance". My mother had a reverse mortgage for twelve years. When she passed, the balance was much higher than the property value and went into foreclosure. My three siblings and I ended up with nothing, and the property had been in the family since 1939.
Did she live more comfortably tho, perhaps her last 12 years were less stressful without a mortgage payment & a little extra money in the bank?
She did you dirty. Reverse mortgages are just a way for old people to use 100% of their equity when they are alive and to leave nothing to anyone.
@@northwestgardener5076Tough S--- ! 😅
I had a friend who took out a reverse mortgage and it worked for him. He had a wife but no kids. HE HAD NO HEIRS! and that is the key. When he died at age 92, the mortgage company owned the house, but he didn't care because he got some extra money to spend and nobody would inheiret the house at a reduced value. Simply put, he didn't care.
Did his wife die before him?
That's the scenario I see that a reverse mortgage would work well.
1 - No heirs
2 - no more monthly mortgage payments to worry about
3 - You actually receive monthly or annual payments (based on your equity).
4 - once you die, just let the bank take the house, no one owes anyone anything, so who cares??
Seems like a win to me..
@@gc4644 Who cares about heirs? How are they "owed" anything or due any pay day? "No, grandma--you cannot increase your standard of living and comfort because it cuts into my inheritance." That is pretty shite behavior.
I have no children but I'd like to think if I did they would be gracious enough to allow me to make use of the assets tied up in my home to make home improvements or better my quality of life without whining "but what's going to be left over for us?".
Good point!😮
Having recently dealt with being my mother's DPOA in her final years, this would be my advice for seniors considering their end of life financial planning. Take care of yourself FIRST. You do NOT owe your kids an inheritance.
At the same time, don't leave your next of kin a chaotic legal and financial mess that they may not have time nor patience for. Get your will, living will and power of attorney documents in order and have a plan for liquidating your tangible property, namely your home. If you have ANY sort of debt, get it dealt with. Don't take out any new loans (including cosigning loans for kids or grandkids). If that means selling the house you wish to pass on to tap the equity in it, so be it. Your next of kin can more easily divide a pile of cash than they can a house or vehicle. They may also have to consider residential care for you if they can't take care of you. If your funds exhaust before your life does, they may have to put you on Medicaid, which won't accept you if you have thousands of dollars in non-liquid assets lying around.
This.
This is such great advice!
Both my partner and I lost our mothers pretty close together, her father passed years ago while mine is still alive.
But the one thing we learned, that we already did not consider, was leaving behind debt that could negatively impact our kids.
That will be the last thing either of us would wish to put on them, especially with the way the US economy is going, among other things.
And stuff. Just like chests full of rubbish and stuff we may leave behind for them to deal with.
We still have our garage full of boxes & old chests of theirs that we've yet to get the chance to go through and toss out.
Found my older brother's original birth certificate in a pile of junk mail from some silly "psychic" lady my mom had been sending money to.
It is the worst. We do not want to do the same to our kids.
Even in Canada with free medical you get dementia or alz. or can't care for yourself physically, your property AND you pensions are all forfeit. I volunteer in my province on several levels : private housing, govt. supported, hospital and hospice end of life care, and the stories I get........
@@HeronPoint2021 Wow. Free isn't so free is it?
Ten years ago when I was a lad of 63 I went to a company with a name similar to the one Tom Selleck is a spokesman for. They supplied me with approximately 130 pages, most of which were confusing to me. One page I did understand stated that the closing costs would be $10,057, the interest rate was 5.17%, annual mortgage insurance was 1.25%, and the maximum they would lend was 46% of the property value. On the advice of my brother, who has an MBA degree, I declined their offer.
You kids, always getting up to your shinanigans.
Excellent job young man, well done. For others, a reverse mortgage may be a good thing to do.
if I have a relatively short life span and no heirs I'm fine with those terms.
What did you end up doing to get the cash you needed? Did your Brother lend you the cash?
WOW!!!
The reverse mortgages are dangerous to senior citizens. You get the money but if the senior for whatever reason leaves the property unattended for too long the reverse mortgage company will initiate a foreclosure if they find out. So say if 75 year old Becky Sue took one out but for some reason and she got really sick which resulted in a lengthy hospital stay. Becky got better but when she got home, all her stuff...things she's had for decades were at the curb with people picking over them. The reverse mortgage foreclosed on her property leaving her homeless. She'll have to go to either a shelter, stay with family, or be placed in an ol' folks home. This does happen. It's hard on the heirs to once the borrower dies. The reverse mortgage company makes it hard for them to sell or re-buy. If you want to re-buy you'd better have the cash right then and there or be able to take on a fresh new mortgage. The heirs have 6-12 months to make a decision and that's if their parents told them. If they are lucky to sell for a profit. They may not get much of nothing back. Once the reverse mortgage is took out it accrues interest until the owner dies but wait here's more, lol. Even though the borrower or borrowers have passed away you have to ask for a payout statement from the reverse mortgage company and the date you'll pay it to stop it from piling on interest. I don't personally like them. They put seniors at risk and their heirs. You have to keep your home maintained. The reverse mortgage also does checks to see if you're there and still alive. You also have to fill out paperwork every year and if they don't have it on file they will initiate a foreclosure. Please be safe ya'll.
Thank you for the great explanation!
Reverse mortgages are basically buying your home very slowly from you and not at the best price. You could have sold it off and bought something smaller / cheaper and had money left over. Plus a smaller/ cheaper home to give your heirs.
It's such a crazy idea.
Don't get me started on the Medicare plan scams. My MIL got money back... next year had to pay way more than the Medicare premiums. She just let it roll over not looking at all. SMH 🙄 when her sin foumf out he warned her to watch fir changes very carefully. Begged her to switch back...nope "I get money " um....most real plans now offer some money for things, but don't charge you more or give you crappy benefits.
Mine, I pay in the Medicare premium and still get a great and better policy but I really shopped and compared when I started. Oh, I compared until my eyes strained so much. Also I stayed on the official Medicare website (her plan is not listed there, I wonder why🤔)
I had done it for her too, but she eventually "knew better".
Oops I got started 😂😅
No scam, just people not understanding what there signing. Just like all the people getting loans to good to be true leading up to 2008 crash
@@thomasmeisch5692 I disagree.
You literally just said they don't understand what they're signing. It's essentially the definition of a "scam". Which means to deceive and defraud. I personally, not in good consciousness could recommend them. I'm a firm believer in building and passing down generational wealth. I hope that you too, share the same sentiment. You see, I'd rather my children receive the fruits of my labor and inherit my property when I'm gone. Even if I don't have children, I believe in passing the wealth down to whomever I designated on my will, which in my case would probably be next of kin that I'm in favor of. I will continue to spread the word about reverse mortgages and other predatory lending practices. My life's passion is to educate others in making better financial and life decisions. Knowledge is power. Be the change you want to see. Let's work on leaving a better world for our children. They are the future. Please be careful and stay safe. Godspeed.
you should be keeping your home maintained whether you have to or not.
I'm nearing 40 and I wouldn't be surprised if celebrities from my youth are pitching this scam in a rebranded fashion to my generation in a couple decades!
Count on it.
When ever I hear Selleck telling everyone that his is not a scam to take away your house. I usually say out loud, “no it’s a scam to take away all the equity in your house.”
When I see Henry Winkler in one of those TV ads, I just keep thinking... it's a "Fonzie" scheme...
Ayyyyyy
Exactamundo 👍
Henry Stinkler saw the grift that Tom Smellick got hold of, and he wanted in. Why give your house to Magnum when you can give it to the Fonz...Ayyy!
Lorne Greene , George Kennedy and Ice-T ( Car Shield )
And Joe Namath
I have over 20 years of experience as a financial analyst, business intelligence analyst, and director of analytics. I promise you that reverse mortgages are a scam.
Explain how.
All of which has nothing to do with reverse mortgages, & clearly you can't explain WHY they are a scam b/c you didn't.
My mom did it less than 2 years before she passed away. House was appraised at 550ish, she got 320k cash. Each month the buyout price went up, so by the the end it was around 450k...has to sell within the year so couldn't hold out for a better price. Custom house personally designed for her with hardwood floors, ohia posts, rock wall, pasture for her horse, it had a straight on view of Mauna Kea...would have loved to have held on to it.
How is an FHA loan product backed by the US government a scam?
@@bigislander72 Yes, that is how it works, the buyout price increases b/c instead of paying the mortgage+interest every month, that was added to the amount of the loan. These loans are designed to benefit the elderly owner, not their heirs. If your mom had been scraping by trying to pay a regular mortgage, you wouldn't have had even a year before it went into default, you'd have had to pay the mortgage off before you could get any proceeds from the estate, which would have meant selling the house. Why didn't you spend the year arranging a mortgage so that you could have paid the buyout amount? That is a pretty excellent price for a house as you describe! In either case, you wouldn't have been entitled to get the house free.
My uncle lost his hone of 40 years this way.
I will NEVER EVER DO THIS 🤬🤬🤬
😪😪😪
I'm sorry my neighbor did also
What happened that caused him to lose his home?
@@dwightshreve4320 I don't know what happened in his instance but those contracts are filled with many clauses any one of which can be used. Among other things, you have to maintain the home to "THEIR" standards. That can mean something as minor as you cutting down a tree for which they did not give permission. It can mean something as minor as you painting the house a color they don't approve. It can mean your putting up a fence around a fish pond or installing an above-ground swimming pool.
They are NOT written to give you any favors but to take advantage. If someone needs money badly, they can go to the bank and get a home equity loan.
@@GlennaVan mortgage lenders whether forward or reverse require that you keep your home insured. insurance companies require that your home is in an insurable condition. it's pretty standard stuff.
It is about time someone has shed light on this scam
I am waiting to hear how it is a scam. Not going to watch the video it never gets to the point.
Except it’s not a scam and is a legitimate regulated financial product
Regulated in the same way sub prime mortgages were regulated.
He's only done this video as this issue was on a recent Family Guy episode. Talk about lazy! And some people reckon Scott is the next Coffezilla? 😂
One of those actually does original research, they don't just watch TV to get ideas! 🙃
@@jheden9386 Reverse mortgages are a legit regulated financial product like MLMs are a legit regulated business.
What is really sad is that my daughter was pushing me into getting a reverse mortgage. After sitting through a free meal seminar, I just couldn't fathom handing over 60% of my home's equity. Doing this would have prevented her from getting my house when I die. Sure, I'm not in good health, but I'm not going to just give away my house to these legal thieves! Reverse mortgages are really a scam in my opinion. If I had no beneficiaries, I would perhaps consider it, but once you sign on the dotted line, your house is no longer yours. Shame on such celebrities like Tom Selleck for posturing for selling snake oil. Hand the man a tambourine and a gold earring!
With your wit … you will live into your 90’s
My mom was considering a reverse mortgage but she was getting very frail. I convinced her to sell her house and move into assisted living. With the money she got from selling the house plus her annual income she can afford to live comfortably for the rest of her life.
Very True.... the only people who should sign up for a home mortgage is someone who hates all their friends and blood relatives.
@@NTJedi
Do you think that President Biden and Dr. Jill Biden or former President Donald Trump and Melanie Trump will sign up for reverse mortgages on their respective opulent homes?
I bet that Hunter and Baron are hoping that their parents don’t!
@@NTJedi Yeah, right....if you have 800K equity in your house, but are cash poor.... just suffer and don't fix up your house with a $400K line of credit. (No monthly payments)
Just live cheaply and leave the $800K to your sibling's children, having none of your own. Let them take trips to Hawaii after you die instead of improving your own life over the next 15 years or even thinking of taking a trip to Hawaii yourself before you die.
How stupid are you to live poor now so young relatives can live high after your funeral.
Just read your local newspaper and you will find every week a listing of homes that have been foreclosured on for lack of upkeep on the home, taxes not paid, or the best one for a lack of equity left on the loan. Now I will say if you have a sizeable amount of money in the bank, no family or friends to leave your estate to, then go for it and enjoy the fruit of your labor.
One of the biggest scams that I see on TV is the commercial selling counterfeit gold buffalo one ounce coins. They talk about how the value of gold is skyrocketing so they limit the sale to three coins per household. Why is it a scam? Because the coins are made out of brass!
Ahhh, but they're electroplated with REAL GOLD ! Yeah, 1 micron thick. That would add up to about 3 nano-grams, worth about a nickel.
If that thickness of gold were on a sheet of glass and you looked at the sun, you'd be blinded for life !
I buy gold and silver, and there's many commercials selling stuff like that. They were selling 1/4 ounce silver coins for like 20 dollars each . At the time silver was only 22,23 spot price per ounce. 😂
People are being scammed to buy gold. The government made it legal for citizens to own gold in 1980, I think. When the dollar tanks, as it will soon, they'll reverse that and confiscate your gold for worthless paper again.
But they're layered with 14 MG of gold! 😂
Selling gold period is a scam. The government made it legal for citizens to own gold again in about 1980. When the bottom falls out if the dollar, as it's doing right now, their Emergency Moneitary Act, passed under Carter's presidency kicks in. It allows government to declare a emergency and confiscate all precious metals from Bank boxes and personal holdings. Say goodbye to grandpa's gold watch and grandma's silver service. If you don't turn it over in exchange for their worthless paper you become a felon.
These things always struck me as scams. It's nice to see someone finally break it all down and actually explain clearly why they are.
so are you willing to pay everyone else's bills...how much more are you willing to pay in taxes? why shouldn't a senior use their equity to maintain their lifestyle?
Except he’s wrong and made inaccurate statements in his video.
@@dwightshreve4320 tell us what he said wrong Mister Troll....
The bank doesn’t own the home. Banks are not in the business to own homes.
@@dwightshreve4320 Really? Seems to me banks are happy to own anything. Where are you getting your information? Your alcoholic grandfather?
They usually will have a clause that they can start foreclosure if you don't live in the house for a month. Which means that if you have an extended hospital stay, need to be in rehab, or go into assisted living, they will foreclose and take the house. You're not allowed to rent it out or even just have family live in it during that time. And remember, these are people likely in no physical condition to be selling a house, so most likely the bank will take the house and any remaining equity- this is what they are counting on.
I'm sure that there are unscrupulous companies that will absolutely try to do this, but fun fact: Just because you are in a hospital or a rehab while you recover, DOES NOT mean you no longer reside at your home. Assisted living or permanent placement in a nursing home is different - and my guess is that in most cases where the loan is called in this is the case, or perhaps the loan company thinks this is the case.
One of the ways that these companies screen their loans to see if you still live there is to send you mail that requires a response. If no one responds and they cannot contact the borrower, of course they will foreclose. (Note: Under HIPPA, hospital are not going to tell the lender that the borrow is in their facility - there is literally no way for the lender to know what has happened if no one responds to their letter.) This may very well be the case in the situations where people temporarily in the hospital are foreclosed upon. Many senior citizens have no one to answer their mail and may be overwhelmed if they experience such a foreclosure, and simply not fight it, even though they would win.
The bottom line: If you have a reverse mortgage be sure to have someone check your mail and be ready to respond to a letter from the lender so this doesn't happen.
My friend’s reverse mortgage allows her to stay in her second home in California as long as she stays 6+ months at her primary home in Washington state the one that carries the reverse mortgage.
How do these folks even know someone is out of their home?
@@karenkoe7096 My understanding is that they typically send a letter to the borrower at the property address asking for a reply. If they don't get one, they either assume they are no longer in residence or the investigate further. IMHO, most of the horror stories of evictions could have been avoided if someone simply responded to that first letter.....
Also, the house and property have to be kept up to their standards. If they see something going into disrepair, they will foreclose on the property.
As far as I know, the only good reason to get a reverse mortgage is if you're old and intend to spend your last years in your home with no intention of giving it to any heirs.
But of course, these commercials are aimed at a far wider net of people.
Yeah, like the heirs..
😮
Tom Smellick: "You can trust me. Now give me your house, you gullible old fool."
Henry Winkler a Democrat hero also made commercials endorsing home reverse mortgages , greed is bipartisan!
guys? they were actors. they were spokesmen. they got paid to say what they said. they probably had no knowledge of, or interest in the company's practices. grow up.
You grow up and don't be so naive. Anybody with half a brain knows what these businesses are about, even actors.@@plasticweapon
I always assume celebs do it for the money. I don't shoes or beverages because a celeb endorses it. If anyone does then they are dumb.
Exactly, Tom's as disgusting as the scam lenders.
My father didn't want to change any of his life. He was going broke living in a 4 bedroom house by himself with two 18 year old cars, a pool, a yard. He didn't want to do a reverse mortgage. He ended up doing a home equity loan and died before it was paid off. We paid it from his estate.
So it seems you are saying everyone was happy at the end.....
That's the best way to do it. But you need to apply for it before you retire otherwise you'll probably get declined because you don't have enough income to qualify. And it's best if you can get an interest only one since the payments will be less. Then just take some money from the home equity line out each month to make your payment.
So same as a reverse mortgage basically.
First, nobody is owed an "inheritance". But these are ripoffs. My GF's mom looked at getting a "reverse mortgage" from AAG and I looked the paperwork over. Just the closing costs was 10% of the equity in the house. I didn't have to look any further than that to know it was a scam. I advised her to not do it. She looked into several other firms and they all wanted basically 10% of the equity up front in "closing costs". There is a special place in hell for these "celebrities" hawking these loans to old people.
What a reverse mortgage boils down to is selling your home for a much-reduced price.
And, don't forget, then you give them the money back! You lose your home and you owe them money -- who's that work as a benefit?
@@CKLee-rs4klAbsolutely not true! They cannot get more than the value of the house nor penalize survivers.
Here is how I humbly understand it. I will not give every little detail 8:27 but give the overall workings as I can best explain.
Said couple takes out a traditional 30 year mortgage loan of $150K to buy the equally valued house. They live in it as their homestead for 30 years. At the end of the 30 years ,they have paid off the original mortgage loan.....$150K + $150K in interest over the life of the loan. So they paid in total $300K.
They are 65 (or whatever the minimum age is for a Reverse Mortgage) and take out a Rivers Mortgage on their house. The market value of the house at that time is $400K. The bank gives them the Maximum amount for the RM of $240K. They use it for different things (remodeling, fix issues in house, vacation, new car, etc.). Then at the age of 85, both the wife and husband pass. At that time, the market value of the house is $600K.
The Heirs of the couple don't want to keep the home, so they sell it (they are allowed by law) for $600K. To satisfy the Reverse Mortgage contract agreement, they give the bank $480K.......which Nets the Heirs $120K. You can look at it as the Heirs "loosing" a separate $150K which is the Total Interest amount of the Reverse Mortgage. If you take that into account, they really end up in the Negative with losing $30K.
So, if I'm looking at this correctly, there would only be a "lose" (by the Heirs) IF the market value of the house, at the time the couple dies, is $480K. They would technically not be gaining nor losing money. -- If the house at that time has a market value of say $400K, then the Heirs give the $400K to the bank after selling the house. The Heirs end up netting $80K. The bank ends up loosing $80K.
As you can see, its a Gamble on both sides. It hinges mainly on the market value of the said house When the borrowers die compared to the sum amount of the reverse mortgage plus the interest accured during the 20 years (in this example).
This is my humble view. I could be wrong on some points.
@@JohnPaul-ol5zl Kinda right with exceptions;the bank(so to speak) will not grant over 60-65 % of the appraised value to be available to the owners. The bank has an approximate 33% buffer to offset market change. There's other stipulations that come into place over the course of the mortgage but I only addressed your scenario. The bank has a buffer for their position and the owners have guards that can't be exceeded to protect them or the heir's. Like a traditional mortgage neither the owners/heir's can be responsible for loss of contract money in event of sale or foreclosure.
You are wrong.
Doesn't pass the smell test when the basic message of the commercials is "We're not crooks".
Sounds like Nixon.
Nixon
It’s because of inaccurate videos like this
I considered getting one, did the math and just got a home equity loan instead. Sold the home some years later, mortgage and loan paid off, and I got a good pile of money out of it. The only reason I looked into the reverse deal at first was that there were no heirs to worry about, but a home equity loan or line of credit doesn't 'paint you into a corner'!
Bring able to think for yourself is a great thing, even if you have no kids to consider
I was wondering why anyone would get a reverse mortgage instead of just getting a home equity loan. Much smarter!!
@deborahblackvideoediting8697
One of the main reasons ppl get a reverse mortgage is you no longer have a monthly mortgage pymt to make. That's a HUGE financial weight lifted off someone's shoulders, plus if you have no heirs it then makes sense to do it
Yes but you still have to make payments.
You're not going to get a HELOC if you're on social security. Like any other loan you need proof of sufficient income to show you can reasonably repay it.
I learned over 30 years ago that a reverse mortgage is one of the worst things you could do.
Right up there with a HELOC.
Another fun Tom Selleck fact: He stole 1.4 million gallons of public water for his personal avocado farm. I can't believe Higgens let him get away with that.
I remember that! Made headlines in The National Enquirer. He had to pay a fine.
Wait, WHAT??? WHAT THE HELL!
@@CurlyblondeA fine is just a slap on the wrist, its nothing more. We need to stop beliving this ppl cares.
"None for you Higgins (Avocados that is)"
💦💦💦💦💦
It is a scam, my mother lost her home to one. The house was mortgage free and a visiting nurse made the call. It was supposed to be a line of credit but they immediately paid her the maximum payout. My brother was apparently forging her signature and taking cash on top of all this. I live in another state so I wasn’t told about it until it was already in place. As the executor of her estate and having the POA one might find this a bit unusual. The safeguards clearly failed here. She clearly didn’t understand what she getting into. She then had a stroke which put her in a facility for over a month. The fine print of the loan clearly states that once you’re not in the home for thirty days that is grounds for call of the note. She ultimately lost the home in under two years.
That is heartbreaking!
So because your brother stole her money, it was a scam. LOL
No fool, it was the 2k a month interest for an eighty year old woman that didn’t know what she was signing. The thieving family member was a bonus. Have you stolen from your mother today?
That's horrible! And so is Nurse Ratched!
While California has an entire department of "Elderly Abuse" the cops consider this a messy civil matter, and chasing these perps. is usually a complete waste of time. Cops ALSO dont' like to get involved in FAMILY issues, even if it's very clear fraud has occurred. As I age, I'm accumulating more and more stories like this: few seem to make the news, ..and it's getting a lot worse.
Funny thing is, Tom Selleck would never need some like a reverse mortgage....
It is only commonsense that anything a celebrity endorses is a scam.
A realtor told me that a reverse mortgage was one of the worst things you could get into. Another realtor told me the same thing. Neither of these two people were trying to sell me a house or trying to get me to get a loan on my home. Why would they both say the same thing about this type of loan? BECAUSE YOU'RE GOUNG TO GET SCREWED!
Um no. If and have no desire of ever leaving your house until you're dead then why not? It's free money to you until you die and that's the point.
Of course it's a bad idea for those greedy kids who expect money after the death
@@bruced.370 Because an ordinary remortgage or loan against equity is usually a much better and safer deal.
@@bruced.370So the extremely routine scenario of expecting generational wealth to be passed down is "greedy"? That's a vapid take. Back to Reddit with you!
You take financial advice from a Realtor? Wow. Ask that drive thru kid what stocks are hot, too.
In the UK they are marketed as "Equity Release Loans", many people have found out they no longer own their home when their partner died, it's sold as a way to take money out of the home when you don't have an income to get a normal loan.
Oh the burden of all this EQUITY. If only there were a way to RELEASE myself from it. 🤣
My Dad loved his reverse mortgage. .. When he died my siblings hated his reverse mortgage because he used and spent his equity. My siblings couldn't suck up his assets! It was hilarious!!!! Good for you Dad!!!
😂 dad knew best.
If the "family" lost 50% of the value of a home, how is that good for Dad or ANYONE! All you need is some good advice and sell the home for 100% of the value! The only reason your happy your siblings are mad is because your an ass.
Exactly, he used the equity in his home he built up during his working years to live out his final days peacefully. Why die with additional money in the bank? What is the point of that?
@@huckfin1598 Exactly, screw the family. Give 250 thousdand dollars to a corporation. The coprorations need your money to feed THEIR families! We should give more corporate welfare to corporations!
@@danherrick5785 or take care of oneself from age 60+???
What are you going to do? Starve so that you can leave a house to your kids?
As the saying goes, "If it sounds too good to be true, it probably is."
How tragically ironic that some senior citizen may find themselves needing the help of someone like Magnum PI in order to investigate the company being shilled by Tom Selleck. PS. Dope Hat.
Why would anyone take the advice on financial matters from an actor? You would not accept a medical diagnosis from a plumber.
@@coweatsman He's Magnum PI though?
@@coweatsman no one with half a brain thinks they are getting financial advice from an actor...some of us are able to put two and two together and realize that he is just a spokesperson for the company...lol to think an actor turned into a financial advisor late in the game and started running ads?!?! Jesus christ man, read a book or something XD
How in the world are you buying a reverse mortgage based on what an actor says in a TV commercial?? Come on ppl
@@coweatsman Look at the fools who took advice from an actor selling a crypto company during the super bowl! 😝
"this is not just a trick to take your home.., no, we will actually take your home, no tricks about it"
Some of the things I have learned in life is: 1) when your Dentist or Doctor says “this won’t hurt a bit”, it will; 2) when someone says “the extended warranty is worth it”, it isn’t; and 3) when someone says “it’s not a scam”, it is. If you truly need the money, you could sell your home for 100% of the value, take that money, invest it in an annuity to pay your rent in a downsized apartment and that money will probably outlive you. Sure you won’t have your home to leave to your kids, but at least you would have some of your equity left over instead of none.
The extended warranty is not true. I got it on a washer of mine. It broke, and it got fixed, no charge! My brother bought an Audi, and something was wrong with something on the dash. It would have cost him $1,500 for just the part. He said good thing I bought the warranty, as it was fixed with no charge! And the part and labor for my washer would have cost me much more than I paid for the warranty!
Many elderly move into assisted living, so it’s not always “move into an apartment “.
@@chicagogyrl4846 Assisted living facilities are another scam. They take about every dime of a person's social security and force them to sell assets and property. If you want to see your inheritance disappear, just put a senior in one of these places.
So true if they turn off comments
@@chicagogyrl4846You guys are the 14% who actually benefit from warranties. Thats the reason why these places pimp them so hard. 86% of the time its free money, and the times they do need to honor the warranty it doesnt cost a whole lot for them.
but tom selleck said specifically, they don't want your home...
Absolutely a scam!
We're going through this right now.
My Mother in law took out a reverse mortgage years ago and has recently passed.
The mortgage company (Novad) wants an insane amount to buy the house back from them if we want to keep it in the family.
HUD says there's a way to SELL the house....you only have to pay 95% of the appraised value.
Sounds good, right?
WRONG!!
HUD only gives you 6 months to sell the property but they (HUD) will give you the run around until the time expires.
The house has to be appraised by the lender, not HUD. Plus all the paperwork and proof of death you must provide.
We provided ALL paperwork within one month..... we're now on month FIVE.....still no answer.
Remember, you can't sell a home you don't own....they know this.
Now the Guv is getting a great house on a double lot in a vacation town.
Makes me sick.
A fool and his $ are soon parted.
Absolutely, the mortgage company/lender gets the house back! End of story. The children get nothing!
The goal of these reverse mortgages is to essentially transfer ownership. People really need to read these contracts. They are evil.
Yes, these products make heirs cringe!
It's always the adult children who complain. This was your mother's home..not yours.
“They said have you heard of a mortgage, well this is the complete opposite. So they send you some brochures. It’s a picture of you with no shelter.” Norm Macdonald.
Gee, imagine how much worse these companies would be if they weren’t “regulated” by the government. Seriously, some people in Congress are getting kickbacks for allowing this.
Jew know why it's allowed to happen?
It's a free enterprise society and this is only one example of the dark side.
Reagan signed this into law so the rich companies can steal your home
I knew this for years. Maybe it's good for some people who don't have anyone to leave their home to. My neighbor just did this. He doesn't care to give his home to anyone.
The exorbitant closing costs & all the many rules reverse mortgage companies have SHOULD all be flaming red flags...
I get calls regularly from people offering to buy my property. They usually have an accent not from my neck of the woods. Most of the time I just cuss them out, and tell them I'd give my property away before I'd sell to the likes of them, and counsel them to get a job where they can make a contribution to the good of humanity instead of trying to cheat people out of their hard-earned wealth.
I tell them I would sell for a million dollars 😂😂😂
Whenever I get any scam calls, I tell 'em "Sure I'll give you the money, can you meet me in the parking lot behind home depot tonight? Don't be alarmed about the baseball bat, it's there to protect myself."
I get postcards in the mail asking if I want to sell my house.
No, not unless you’re going to let me come live with you. 😛
I'm not sure what triggers them to start knocking, but at my old home, I would get nearly monthly post cards from different people offering to buy the home. If an offer was included, it was always hilariously low I'm talking like offers that would barely even cover the property taxes on that home. I laughed at first, then it chilled me thinking the only reason they'd continue to send these is that _someone_ is responding and selling to them.
Common sense should tell you that a ‘reverse mortgage’ is just that, a mortgage that has to be repaid with interest. No one gives you money for nothing!! 🤓
A reverse mortgage is a mortgage in reverse. You don't have to make payments to the mortgage company until you sell or die. But you do have to pay property tax and insurance.
My Sentiments Exactly! Charity begins in the Welfare Office, NOT TV.
First question I asked homeowners before taking their RM loan application is do you want to leave your house to anyone such as children or heirs. If they wanted to, I declined and advised this not for you.
The loan has helped many seniors enjoy their last years with the equity they own, not their children. So many children don’t do anything to help their elderly parents, but would expect they’re more entitled to use the equity after parents are gone than their parents.
It’s not for everyone, but it’s no scam!
It’s a very helpful tool for seniors who need or want to spend their equity they worked for-not their children. You’re very biased and one sided with your information sir!
Sounds like it’s just another case of people entering a financial transaction without understanding what they’re doing. If you plan on leaving an asset to your kids, don’t pledge it as collateral to a financial institution under any circumstances
Or just tap the home's equity perhaps by well...selling it?
The romanticism in leaving one's kids their home is overrated. They usually have their own lives by that point, possibly thousands of miles away.
@@scarpfish Rich people leave assets to their kids, and grow intergenerational wealth. Poor people leave nothing in a perpetual loop of eating the young.
Let's see how sharp you are when you're in your 70s and the newest scam comes along.
Reverse mortgage is a scam. Those advertisements should be removed from television and people prosecuted
yeah, I totally agree sadly there are scammers out there like this stealing people's homes.
It's not a scam but it is a tool the homeowner can use to stay in the home if they need to free up cash flow by borrowing against the equity.
A mortgage is a scam if you think a reverse mortgage is a scam.
So yeah I kinda agree with you to some extent.
@@spookrockcity Yeppers is not a scam because it's technically a loan my man you are totally correct dear sir you get a gold star🌟
@@spookrockcity I depends. For some people it works out perfectly. Especially if there is no one to leave their house to, or if nobody wants it.
@@spookrockcity Well, there are many stipulations that seniors have to meet when they get a reverse mortgage. They must keep up with the maintenance of the home, property tax and homeowners insurance have to be paid in a timely manner. If it isn't they will initiate a foreclosure. They will also foreclose on the home if the senior spends a significant amount of time away from the property. Many seniors have got these loans, got sick with lengthy stays in the hospital or rehab and only to be found homeless once they get ready to come home. These reverse mortgage companies do send people to go "do checks". This has been documented. Every year the senior has to fill out paperwork saying that they're still alive.
A friend of mine did a reverse mortgage, used the money to live on, and when she could no longer take care of herself she had no money for assisted living and had to go live with a daughter who resented her. Of course her home was taken and she had nothing but a small Social Security income, which I suspect her daughter took to cover her mother's expenses. My friend was miserable during her last years, feeling she was unwanted and very lonely. I dont understand why these mortgages are legal.
To, @carolhudson9675 : May the Lord embrace your friend's spirit. It is unfortunate that this is part of how America operates. I'm a 64 year old black man and have heard of this happening to a few people in my community. The mortgage company and your deceased friend's daughter sound like no good ass-rats!
I wonder if that daughter got a kickback?
@@jacqueslefave4296 That is a possibility. What is most definitely true is that America treats its elderly and veterans like left-over garbage.
So very, very sad!
@slefave4296 I assure you, the daughter got nothing! What makes you think there would be a kickback?
As a senior, when i recently read how Tom was worried about losing his ranch because of the cancelation of Blue Bloods, I got a little chuckle from the comments that he should call AAG.
I lost some respect for Tom Selleck, have watched him since the Magnum days. He certainly doesn’t need the money. I feel these Reverse Mortgages are terrible for seniors. You will probably end up with nothing!😢😢😢😢😢😢
The new one is better.
Um, that's how reverse mortgages work. You are literally living in your home while someone is buying it from you. You die? They take the property. Normal buyers of your home expect you to vacate on an agreed date usually right away.
@@tonycrabtree3416they underpay knowing people are desperate. They target vulnerable people and they Indeed do take your house when you die. There's nothing wrong with the idea per se. If you don't want to leave your house to anyone, if you know you don't have long then it's a good way to get cash. The fact is they are massively miss sold. As said they target the vulnerable, those in need of money. They deliberately obsfucate their terms and conditions. They are shady at best. There is a use case for them, but that use case is for a select group of people. I'm not going to pretend to be up in US law but here in the UK they've been massively regulated because they were in effect stealing people's houses. The fact that in the US you are getting charged for your medical care makes it worse.
"And be happy"
@@tonycrabtree3416 AAG over inflates home value to trap people.
If you have a reverse mortgage and need to move to a memory care facility, you lose your home, which could have been used as a rental (or sold) to offset the enormous cost of caring for a dementia patient.
You go into memory care you will lose your home if you don’t have the money to pay for the care no matter what.
Most assisted living facilities if you have enough equity will take your home and allow you to live in their facility until you die…if you outlive the equity then you go on Medicaid. But only if you have enough equity to satisfy them to begin with. They may transfer you to a Medicaid facility if they won’t get enough money to pay for your expenses.
My mother-in-law got a reverse mortgage on her property in the early 2000s. The house was free & clear prior to that reverse mortgage. She had just been diagnosed with lung cancer. She was able to use the proceeds of the loan to do many long-time needed repairs to the house. Thankfully the bank waived those items during the home inspection (as part of the reverse mortgage process) because they knew she'd use the proceeds to get that work done. She died within about 1-2 years after getting the reverse mortgage. Of course the house had to be sold, but it saved us having to front all the money to get that work done before we could sell the house. It did impact the equity, but it was highly beneficial in our case. Since she died not long after getting the mortgage, the interest hadn't grown too bad. I have nothing bad to say about the reverse mortgage in our case. Full disclosure: I worked in 2nd mortgage marketing (but not reverse mortgages) in the late 1980s, but haven't worked in any kind of lending since 1990. My income is not depending on any type of lending.
Interesting
Seems like this is a niche financial instrument (like stock options) that is usually risky/counter-productive but is occasionally very useful and the proper course of action.
So Billy, you know that no loan is ever granted based on a "promise" of action on the part of the borrower. The numbers the lender could live with were based on the ordinary HECM formula. Age of the borrower, value of home. Glad it worked for your family. Sorry for your MIL
It's nice to see a well thought out answer instead of the usual parroting of XYZ is bad when people don't make the effort to understand what they are condemning.
When it works for 1 in a 1000 people it’s all good!?!?!? 😂😂😂😂😂😂😂
My deceased brother fell for this scam. Now his wife is paying the price.
I've been telling people for years that the idea of a reverse mortgage is to put a lien on your home that MUST be paid in full when the last person on the mortgage leaves the home. What that means is that if you think that you can leave your home to your family, they must have the FULL AMOUNT owed when the person who received the reverse mortgage dies or must go into a nursing home. Most heirs simply can't afford that so the house must be sold to satisfy the money owed to pay off the reverse mortgage. The only time anybody should ever even contemplate a reverse mortgage is if they have absolutely no choice.
So it's only a "scam" because you were counting inheriting the property in question, right? The thing about inheritances is nobody is guaranteed one and no one is obligated to bequeath one.
Maybe it's not up to you how your parents or grandparents use their assets.
@@sarahdawn7075 Did you even read what I wrote? I clearly wrote that if you need the money and have no other choice, do it. I'm just not in favor of selling the future of your family just because it's easy to do and you want a larger bank account. I have no parents or grand parents, they're dead and buried. You should not project your own prejudices and ideas on others. It makes you sound ignorant and uninformed. Every word I wrote is objectively true.
The more they try to convince you , the more SKEPTICAL YOU SHOUL BE .
A massive scam.
When I was working in real estate a loan broker tried to sell me on reverse home mortgages for my clients who would qualify. Fast forward, she's over 70 now and lives in an RV. That worked out well.
My parents got one of these several years ago when my mom became very sick and they needed the money. She has since passed but my dad is still alive. Three times in the last five years the reverse mortgage company sent a letter basically to my dads estate saying that since he had died the home need to be sold quickly. He is still alive and driving himself all over town!!! The latest scheme is last year for the very first time they for some reason paid the homes taxes and since he hadn't paid them back it was in violation of the contract and the home needed to be sold quickly!! That year he had gone down to pay his taxes and been told they had already been paid! Strangely the tax office was unable to tell him who had paid the taxes! My dad thought it was probably me or one of my three sisters.
Big companies have systems in place that can get carried away. I would not assume any human intentionally did those things. And I am guessing you got it straightened out, right?
I’m not surprised that Tom did this . I’ve never been a fan and when I saw those commercials I thought it was a scam , but didn’t know all the details. Thanks for uploading this video.
I've reached my early 60's and I find myself targeted by a lot of scams including this one. That and the "we'll buy your house for cash NOW" scam.
I've been dealing with the "we will buy your house for cash NOW" scam since I was in my early 40's. But I'm sure it will continue to get worse as I get older. I'm hoping that my generation (gen X) and younger are smarter than the older generations are about these scams. Because we were raised in a world where you don't trust people. The older generations thought everyone was good and honest. Anyone under 60 should know better from what they saw growing up and in their adult lives.
@@vickieclark5931 So scary to think that you probably VOTE in our elections !!!
And, if you can't afford to keep your current house, you can look for an alternative, such as an over-50 community; pay a realtor to sell your home and use the proceeds to finance the purchase of a new dwelling (and if you use the same realtor for both, you may be able to negotiate the percentage the realtor takes).
@@vickieclark5931such a sad state of society. I’m that older generation you speak of. And yes, I grew up believing the Vast Majority of people were honest and just trying to get along like us. Yes, there were those who scammed and lied but they were the exception. Now? I think the crooks are taking over.
The truth is they buy your home with a loan with high interest rates. Reverse mortgage means YOU HAVE SOLD THEM YOUR HOUSE CHEAP. You are no longer a home owner, but you have the responsibilities of a home owner in a house that’s not yours. Pay taxes, insurance, EXPENSIVE RENOVATIONS etc… there is no house to inherit.
I applied for a reverse mortgage from AAG and the appraiser that was selected by THEM was so incompetant, I did a complaint against the idiot, and got his !icense revoked or suspended. This was in N. California.
Years ago, a neighbor of my mom lost their home with this SCAM...I would never believe anything that a celeb endorses...
What?? Not even Joe Nameth? 😂
What caused them to lose the home?
@@dwightshreve4320 you figure it out. Lots of people loose their homes with this trickery...
Tom has a nerve to play a Police Commissioner.😂
That's actually appropriate...
@@positivelynegative9149 Ripping off old people
@@positivelynegative9149 With a company that rips off old people
No different than Trump pretending to be a President and giving tax cuts to the rich.
For shame, Tom!
Kay's mother took a class on how this works. The daughter was welcome to attend as well. This happened because they didn't pay attn. If you want to leave equity to your kids then dont do a reverse mtg. I don't have kids but getting rid of my mortgage for the rest of my life till I die is a great option.
they want you to rebuild your home ,then they take it..Shame on you Tom Sellick
My aunt and uncle owned what we all thought of as the family home, and they were quietly talked into one of these late in life when medical bills started to pile up (they were "good conservatives", grew up pulling themselves up by their bootstraps). Needless to say when they died, even though they had a will that bequeathed the house to my cousin, because of the reverse mortgage the bank took everything, and auctioned off the house. There were several of us in the family who wanted to move into the home, but unless we were able to outbid someone else at the auction that wasn't going to happen, and the family home we all visited for 50 years, was gone. Now owned by someone else.
It sounds like your Aunt and Uncle were good people, but they just didn’t want to give their house to you or your cousin. That’s ok, they can do whatever they want either way their property. I wouldn’t be mad at them.
The minute you sign a reverse mortgage it means that company will eventually take ownership... UNLESS you're willing to pay them back all the money and much more money.
@@johnlawrence4975 It sound more like they did not understand the contract they signed and thought the heirs could take over the contract. They did not read the fine print that if either of them moves out, it reverts to the company.
If you were aware of your grandmother's financial situation you should have paid your grandmother the money she needed for support in exchange for her leaving you the house.
Horrible.
I've lived it and it is the most predatory practice with horrific results. Period.
Are you the old person with the reverse mortgage? Or are you the grandkid that lost out after their funeral?
SHAME ON THESE PREDATORS.
I am so pissed off at Selleck for promoting these Reverse Mortgage scams
My own stepmum went 200k+ in the hole after she took out a Reverse Mortgage that was then used an ATM for Jamaican Scam Artists
I wrote to EVERY AG in the US and none of them would stand up to these Reverse Mortgage Scammer Companies
My Stepmum is a big fan of Tom Selleck