I'm sure most of you read this news story (both this one and the one that preceded it when the lady shot herself)

Fannimae forgives loan to 90 yr old

EXCUSE ME, but what idiot APPROVED this loan in the first place?

 

Approved? I suspect that they actively SOLICITED her business. I don't know the facts in this case, but SOME subprime mortgage sellers prey on the old and senile. This could be yet another case of that. Or maybe not. We'll never know. But she was 86 at the time she signed for a mortgage and a second mortgage or HELOC, I forget which.

 

And it was a 30 year mortgage.

 

it makes me wonder if they didn't do the song and dance about a reverse mortgage.

"The day your house starts paying YOU back!!!"

makes me sick.

 

AFAIK, there is nothing wrong with a properly set up reverse mortgage. It is a means to pull equity back out of your home and be allowed to live there indefinitely. If you aren't concerned about leaving an estate, it can make sense. I'm wondering of someone convinced her that a standard mortgage was a way to go to get a lump sum immediately. In that case, though, who the hell would expect her to be able to pay it back????

What is it you find objectionable about a reverse mortgage?

 

Most people would infer that I am a social liberal but a fiscal conservative.
Reverse mortgages in the right hands can be acceptable when exercised prudently.
BUT.... to me they have an odor rife with abuse potential.
I would never consider a reverse mortgage to approach 50% of equity at maturity. Otherwise market downturns etc could leave you upside down with no escape.

 

If the income level is high enough for her to qualify for a mortgage (or the equity in the house was high enough), why wouldn't the loan be approved?
There is no evidence whatsoever that she signed the papers under duress or that she wasn't mentally compentent when the papers where signed.
I don't think her mortgage can be classifed as a subprime mortgage either, it was a 30yr, 6.375% mortgage (it appears to be a fixed rate, not an adjustable rate mortgage).

What would you say if she walked into her local Honda dealer, financed a new Accord-and stopped making payments on it 6 months later? Would you expect American Honda to just give her the car? Or any other large financial committment?

Sometimes people just make a bad decision-and they have to face the consequences.

 

Where do you come up with these comments? What basis would even suggest any coercion of any sort?

If she had the income and the desire to buy it you have no choice but to process her loan or else you are discriminating. It's the law of the land, you can't have age discrimination.

And if you don't give her a 30 year mortgage she might not have been able to afford it. So do you say you're old (and since you are posting on the Vintage forum I am presuming you are too) and since you are old you can only have an X year loan.

Absent euthenasia laws how do you figure out how long someone is going to live and therefor how long a long to "allow" them to have? How long a loan should we allow you to have?

How many of you intend to live in a house 30 years? The average is 5-7 so are you saying no one should get a 30 year mortgage because they won't be living there for 30 years.

Where do you draw the line for who gets approved and what type of loan they can have? Are you the Mommy that runs the world? If you aren't who is?

 

ohhh i don't know but i suspect most 110 year olds do not have a job nor the capacity to comprehend paying anything too well.. furthermore, i'd say this lady did not have the mental capacity to come up with anything else than to shoot herself when the bills came due

insurance models will tell us how long she has left on this earth