So in the beautiful, quaint, very expensive little coastal town I was born in and live in currently is a 62-year-old man who owns a little 3 bedroom/ 2 bath ~1700 square foot house with a decent-sized detached garage on a 1/4 acre. Decent shape house, probably appraises for over $400,000 now and a few years ago would've probably appraised for over $600,000. Incredible area.


He's retired and out of money, and if somebody is willing to pay him $1,000 a month until he dies, then he will give his property to you outright in his will.



Best case scenario: the geezer dies in his sleep from natural causes in five years, I'm 26 years old and own a half-million dollar house outright for $60,000.

Worst case scenario: after 20 years the geezer is still a healthy 82 years old while I've paid him $240,000 a month for the past 20 years, he's become a hoarder with 50 cats and the house is slated to be condemned, and I either have to pay a second mortgage payment for a place to live in or back out of the deal and loose all the equity I've put into the place so far.

The over-under would be that he'd live for around 10 years or so before kicking the bucket, so it'd be $120,000 for a $500,000 house.


Would you? Would you consider it? The fact that I am working in filed service and could feasibly live in a hotel room 8 days out of 10 for the next 5-10 years makes me think a bit about it...

 

What if he is on his death bed and changes his mind and leaves it to his 28 year old girl friend and just cuts you out of the will due to her taking care of his needs for the last six months. What could you do sue him.

 

It isn't just through his will, it's also through a separate legally-binding contract.

 

No good deal begle.

In an age of 95 the house is payed off anyways, so to speak in 32 years. What happens if he moves into a senior resident area? Are you allowed to move in?

I bet he will sell his house to get the money to move into a senior resident area. Don't forget that there is a lot to do in repairs after 32 years. Expect major repairs within the next ten years. Who is going to pay for that? You? He won't do it anyway, because the house is already sold...

I would'nt do that- life expectancy is pretty high. You need your money for yourself. Save it.

 

This is strange. When I first started reading this, the guy sounded old and it sounded good, by the end he sounds young and still goin'. Is 62 the new 40?


My take on it: If it sounds too good to be true, it probably is. If it doesn't, why bother?
LOL! Okay, not really. But what happens if the guy dies of some freak accident, and you get the house just 3 payments in? Are they going to investigate you for murder just because you now have motive?

 

Companies are doin this left and right, it's called a reverse mortgage. Big finance companies are taken possession of family homes every day because of old folks gettin had on these scams.

 

hmm, hadn't heard of it before.

 

get all the paper work done and then run his *** over with ur truck !!

 

I fail to see how they're unethical provided that the owner understands the concept, and it's not a hard concept for them to understand.

 

By concept it's a good idea to get these elderly through hard times. The problem is in the fine print that a lot of the companies include in the contracts. I can't tell ya details, only that they have kept the BBB and law enforcement busy because of complaints against the companies.

If it's an honest deal by both parties I think it's a great idea. Personally I would also like to see the next of kin signing the agreement also to prevent any issues from them when the time comes.