Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 03-30-2012, 01:04 PM   #21
Full time employment: Posting here.
 
Join Date: Jan 2007
Location: Thousand Oaks
Posts: 839
Quote:
Originally Posted by rothlev
She may or may not qualify for HUD senior housing which only costs 30% of income, not sure if the house proceeds would count against her. Lots of seniors live and are very comfortable in these apartments which include some social activities and usually buses and access to the community. Also, check if she qualifies for food stamps.
My grandmother lived in HUD senior housing for a while and she was very happy there. If she doesn't need assistance it's definitely worth looking into.
__________________

__________________
mh is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 03-31-2012, 04:17 AM   #22
Thinks s/he gets paid by the post
obgyn65's Avatar
 
Join Date: Sep 2010
Location: midwestern city
Posts: 4,061
This would be my advice also.
Quote:
Originally Posted by pb4uski View Post
Would she be better to sell and rent a smaller place or senior subsidized housing? If she cleared $140k she could invest it and get another $700 or so a month, plus she would gain by not paying property taxes, maintenance, etc. on her current home.
__________________

__________________
Very conservative with investments. Not ER'd yet, 48 years old. Please do not take anything I write or imply as legal, financial or medical advice directed to you. Contact your own financial advisor, healthcare provider, or attorney for financial, medical and legal advice.
obgyn65 is offline   Reply With Quote
Old 03-31-2012, 07:43 AM   #23
Full time employment: Posting here.
 
Join Date: Sep 2009
Posts: 739
It's an interesting math problem.

She get's $100,000 to spend as she pleases and also "free" rent for life.

So the cost to her is the initial "fees" and the interest. Which is about $5,000 initial and $5,310 yearly interest. Over 15 years, let's guess, it would be like paying $500 per month rent ( and fixed, at that).

Hmmmm, not bad. Maybe it beats selling.
__________________
Zero is offline   Reply With Quote
Old 04-01-2012, 10:14 AM   #24
Full time employment: Posting here.
 
Join Date: Jul 2007
Location: ST LOUIS
Posts: 994
Looks good zero going my way it would be I am guessing $540 for a HUD senior apartment. Going your way it is $500 and she can stay in her own home. She can also use the money for her LTC if she has to. But you should look at all options before you decide.
__________________
Proverbs 15:22 Designs are brought to nothing where there is no counsel: but where there are many counsellors, they are established.
rec7 is offline   Reply With Quote
Old 04-01-2012, 10:43 AM   #25
Full time employment: Posting here.
 
Join Date: Apr 2008
Posts: 702
My mother stayed in her house until she was 90 when she went to assisted living and the house was sold. She was in a 55+ community so it had a few services and a club house not usually found in a typical neighborhood. She was there probably about 5-7 years too long. Things went wrong with her health, the house and her car during the last 5 years in the house.

I would look at all other options before you commit to a reverse mortgage.
__________________
FreeAtLast is offline   Reply With Quote
Old 04-01-2012, 01:27 PM   #26
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Dad looked at reverse mortgages after taking a hit around 2008 ... the FEES were cost prohibitive (12% !!). So he did a cash out refi instead. Lowered his rate and got some cash in hand.

That said, with no heirs and a cashflow problem .... that's really what the reverse mortgage is designed for . Moving at 80 is not everyones cup of tea, so if she's bent on staying in the house, go for it (reverse mortgage) ... the home equity might never be tapped for her use - otherwise.
__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Old 04-01-2012, 02:51 PM   #27
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,620
My mom moved out of her house before things got out of hand. She wanted to have the time to make new friends in her new (and final) location. She will have time to become completely familiar with her surroundings, appliances, neighbors, etc without any of the headaches of finding tradesmen to keep the place in shape and the added benefit of caring, concerned neighbors of her age and professional staff in her complex.

She had seen too many of her friends trapped in their homes of familiarity while things deteriorated on the inside, the outside, and the neighborhood.

I think she made a great decision.
__________________
LOL! is offline   Reply With Quote
Old 04-01-2012, 03:49 PM   #28
Recycles dryer sheets
 
Join Date: Sep 2006
Location: clearwater
Posts: 223
HUD is 30% of income. If income is $1100 a mo, HUD will be $330. Price you can't beat. I know of someone living on less than $700 mo. in HUD housing . She is comfortable, gets meals on wheels for free, and food stamps. However there may be limits on the assets, which could mean if aunt sells the home the money may disqualify her. When my MIL lived there the desk politely let us know when her checking account balance was too high so we would take some of the money out. There may be a way around this, you'd have to do some homework.
__________________
rothlev is offline   Reply With Quote
Old 04-01-2012, 03:52 PM   #29
Full time employment: Posting here.
 
Join Date: Sep 2009
Posts: 739
After doing some reading online, it appears that Reverse Mortgages have lost favor with all large banks and there are now specialized lenders doing it. It also appears Congress has put regulations on the fees. From what I can tell, the "truth" is only known once the paperwork is done. She just needs to know the right questions to ask.

I think my "help" in all this will be just getting together a list of questions for the lender to answer prior to signing. When/if the DW might want to take her aunt to a lender for a preliminary discussion.

EDIT: rothlev, thanks, that is great info to know.
__________________
Zero is offline   Reply With Quote
Old 04-01-2012, 04:15 PM   #30
Recycles dryer sheets
 
Join Date: Sep 2006
Location: clearwater
Posts: 223
Also: if you look into HUD housing, look at ALL the options, some can be in "bad" areas, while others are totally wonderful. There is likely a waiting list, especially for the cream puff buildings, ( some are church affiliated)
__________________
rothlev is offline   Reply With Quote
Old 04-02-2012, 06:39 AM   #31
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
Asking about a reverse mortgage tells me she is in a financial "death sprial." The odds are that she will evenually need assisted living and probably nursing care in the future. Medicaid can only cover nursing care and few decent private nursing facilities accept Medicaid. Medicaid nursing homes are pretty bleak even by the bleak surroundings I've seen in private facilities.

I would recommend she move into an independent living facility and put any cash left after the sale of her house in something very safe like CDs. She needs to get her living costs below her current income. Someone she trusts needs to have her power of attorney and know where her assets are..
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 04-02-2012, 08:29 AM   #32
Full time employment: Posting here.
 
Join Date: Sep 2009
Posts: 739
Wow, I'm coming to the conclusion (if she sells the house) that this is the beginning of a likely 3-stop process for her. First, independent senior care living, second, likely assisted living and third, nursing home.

I think I may have a chat with an elder care attorney. Got to make sure that having a nest egg does not impact her ability to get assistance.

Thanks for the comments, they raise lots of new issues/questions.
__________________
Zero is offline   Reply With Quote
Old 04-02-2012, 09:23 AM   #33
Thinks s/he gets paid by the post
2B's Avatar
 
Join Date: Mar 2006
Location: Houston
Posts: 4,330
A nest egg will keep her from getting assistance but she will be in a much better situation without it. Earlier in the process with my in-laws, an elder care attorney said that he could create a trust that would transfer the assets to DW and her sister without triggering discovery in the "look back" rule. He wanted $7K and he seemed a bit sleezy. The estate attorney we used said that it wasn't a good idea to try.

The path from independent through nursing is not necessarily a given but it is possible. Having assets gives better options during the process.
__________________
The object of life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane -- Marcus Aurelius
2B is offline   Reply With Quote
Old 04-02-2012, 04:22 PM   #34
Moderator Emeritus
Nords's Avatar
 
Join Date: Dec 2002
Location: Oahu
Posts: 26,617
Quote:
Originally Posted by Zero View Post
Wow, I'm coming to the conclusion (if she sells the house) that this is the beginning of a likely 3-stop process for her. First, independent senior care living, second, likely assisted living and third, nursing home.
I think I may have a chat with an elder care attorney. Got to make sure that having a nest egg does not impact her ability to get assistance.
Thanks for the comments, they raise lots of new issues/questions.
As 2B says, the key is for her to move into the care facility as a "private pay" patient. Then as her assets spend down she can apply for Medicaid. The care facility can't discharge her for inability to pay, although they can exploit other "opportunities" like extended hospital stays or behavioral issues.

When my father entered his care facility a year ago (private pay), I got three calls from the billing department making sure that I knew about filing for Medicaid. They called at least monthly for the next six months just to let me know that claim approval could take 6-12 months. When the LTC claim got approved and I explained that it'd pay out for about 3.5 years, they agreed to check back with me then.
__________________
*
*

The book written on E-R.org, "The Military Guide to Financial Independence and Retirement", on sale now! For more info see "About Me" in my profile.
I don't spend much time here anymore, so please send me a PM. Thanks.
Nords is offline   Reply With Quote
Old 04-02-2012, 05:08 PM   #35
Full time employment: Posting here.
 
Join Date: Sep 2009
Posts: 739
Thanks to everyone for sharing "real-life" experiences.

2B and Nords, that info effectively ends my look at reverse mortgage.

In short summary of points made that influence that are:
1. Selling the house outright gives her more money to provide funds for the "private-entry" phase, whereas a smaller nest egg might get her excluded from the better facilities.
2. Selling the house also eliminates what I feel is an expensive up front cost of the reverse mortgage.
3. And my biggest concern is that the Rev. Mort. requires her to live in her home, so if 6-7 years go by and suddenly she is in need of care; what then. She might have spent a fair portion of the money and then be faced without funds sufficient to repay the loan. Forcing foreclosure and hassles just as she needs care, not legal worries.

I see no need to rush anything so we will likely supplement her income a bit and at least supply the higher end cat food. Guess I'll be back to drinking PBR or "white can" brand.
__________________
Zero is offline   Reply With Quote
Old 04-02-2012, 05:18 PM   #36
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,115
Quote:
Originally Posted by Zero View Post
...we will likely supplement her income a bit and at least supply the higher end cat food.
One of my son-in-laws says I shouldn't worry about running out of money in retirement, he knows where to get Fancy Feast at wholesale prices....
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 04-02-2012, 05:28 PM   #37
Full time employment: Posting here.
 
Join Date: Sep 2009
Posts: 739
Looks like your DD married a thoughtful man..
Has he got a brother that can get wholesale PBR, I got a daughter needing a good man..
__________________
Zero is offline   Reply With Quote
Old 04-03-2012, 09:40 AM   #38
Thinks s/he gets paid by the post
tryan's Avatar
 
Join Date: Mar 2005
Posts: 2,449
Quote:

And my biggest concern is that the Rev. Mort. requires her to live in her home, so if 6-7 years go by and suddenly she is in need of care; what then.
Then the house is sold ... the reverse mortgage is just a lein on the house. She'll get the unused equity. Just need to ensure there is no early termination fee.
__________________
FIRE'd since 2005
tryan is offline   Reply With Quote
Old 04-03-2012, 10:24 AM   #39
Full time employment: Posting here.
 
Join Date: Sep 2009
Posts: 739
Quote:
Originally Posted by tryan View Post
Then the house is sold ... the reverse mortgage is just a lein on the house. She'll get the unused equity. Just need to ensure there is no early termination fee.
It's hard to picture this lady at 86 or 87 with the burden of foreclosure placed on her doorstep. I wonder who is gonna be there to work out the: "get the house cleaned up" for sales purposes, sign "zeees paper ole lady", where do you want these household good stored?, come on hussle up, etc.
__________________
Zero is offline   Reply With Quote
Old 04-03-2012, 10:45 AM   #40
Recycles dryer sheets
 
Join Date: Mar 2012
Posts: 125
Quote:
Originally Posted by Zero View Post
It's hard to picture this lady at 86 or 87 with the burden of foreclosure placed on her doorstep. I wonder who is gonna be there to work out the: "get the house cleaned up" for sales purposes, sign "zeees paper ole lady", where do you want these household good stored?, come on hussle up, etc.
Especially considering that if she does have to move it would most likely be due to health issues (and/or) dementia.
__________________

__________________
dmdunca44 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
LSW/National Life Group for retirement orbit2u Hi, I am... 16 05-13-2015 05:24 PM
Government's New Plan for Retirees Includes Pink Slime, Horse Meat, & Horse Hockey mickeyd FIRE and Money 63 04-04-2012 02:43 PM
Health insurance for non US Citizen Texas Proud Health and Early Retirement 7 03-30-2012 06:28 PM

 

 
All times are GMT -6. The time now is 01:54 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.