Reverse mortgage backfires!!!

[watchman8]

why cant they sell the hse then and just keep the money?

Then where do they live? Reverse mortgage means borrow against the property until death, and then the bank take possession of property.

 

[watchman8]

Elderly couple kena backfired by reverse mortgage loans with Income!!! Now no house and no money.

Previously owners of a $2 million semi-D. Itch fart got into a reverse mortgage scheme.Now everything gone!!! Another financial shithole scheme for the peasants!!!

Reverse mortgage only started around 10 years ago. How does it backfire? Sounds more like the couple not happy that they committed to reverse mortgage at low valuation a few years ago, now they see the market price doubled, so cry father cry mother.

Reverse mortgage means sell the house, but buyer allow you to live there till death or a certain number of year, on condition that buyer don't pay in one lump sum, but in installment.

 

[Geminipegasus]

Reverse mortgage only started around 10 years ago. How does it backfire? Sounds more like the couple not happy that they committed to reverse mortgage at low valuation a few years ago, now they see the market price doubled, so cry father cry mother.

Reverse mortgage means sell the house, but buyer allow you to live there till death or a certain number of year, on condition that buyer don't pay in one lump sum, but in installment.

That's what they thought too, but shortly after they signed they were forced to sell the house and top up cash to ntuc income. That's how they lost the house and that's why they sued but its strange that there is no verdict after 5 years

 

[watchman8]

That's what they thought too, but shortly after they signed they were forced to sell the house and top up cash to ntuc income. That's how they lost the house and that's why they sued but its strange that there is no verdict after 5 years

Ok, then I am mistaken on NTUC version of reverse mortgage. Seems like a dangerous financial tool to use for retirees. Think retirees should stick to downgrading instead of trying to live it up without a big cash reserve or passive income.

 

[scroobal]

Any mortgage normal or reverse is dependent on the property holding its value at a minimum for the deal to stand. These are full recourse loans. In the US, the sub prime blew because they were non-recourse. If the property value fell below the loan amount, the owners simply walked out and the bank was left holding the baby.

During the 90s, fall in property prices and many properties were under water, MAS quietly told the banks to keep quiet and just collect the instalment payments and not ask for top-up. It was the right decision as it will lead to hardship all around.

 

[Geminipegasus]

Any mortgage normal or reverse is dependent on the property holding its value at a minimum for the deal to stand. These are full recourse loans. In the US, the sub prime blew because they were non-recourse. If the property value fell below the loan amount, the owners simply walked out and the bank was left holding the baby.

During the 90s, fall in property prices and many properties were under water, MAS quietly told the banks to keep quiet and just collect the instalment payments and not ask for top-up. It was the right decision as it will lead to hardship all around.

Hmm, if they did the same to this old couple then by now the old couple will be millionaires. Really wonder how they are doing now, to have lost the house and become bankrupt at this age is so stressful and frustrating that I worry it will take a toll on their health.

 

[scroobal]

It is indeed a sad story. Old man for all his nonsense is known for not allowing these practices. He is the one who told MAS not allow the banks to give credit cards indiscriminately and got them to impose 2 times limit within 2 months.

The moment he stepped down, car loans were deregulated and people began incurring debts. Now it is back to be regulated.

Hmm, if they did the same to this old couple then by now the old couple will be millionaires. Really wonder how they are doing now, to have lost the house and become bankrupt at this age is so stressful and frustrating that I worry it will take a toll on their health.

 

[ray_of_hope]

Do banks in S'pore still offer Reverse Mortgages? I thought most phased it out because of poor take up rate.

 

[Cestbon]

Elderly couple kena backfired by reverse mortgage loans with Income!!! Now no house and no money.

Previously owners of a $2 million semi-D. Itch fart got into a reverse mortgage scheme.Now everything gone!!! Another financial shithole scheme for the peasants!!!

Stupid couple should sell the semi D and use money to buy 4room/5 room HDB. Extra $1.5million will be enough for them.

 

[watchman8]

Stupid couple should sell the semi D and use money to buy 4room/5 room HDB. Extra $1.5million will be enough for them.

In 96-97 period, everyone thought that home prices can only go up.

 

[MenghidupKehadapan]

I knew of a relative who ended up as a case of bad timing.

Just a few weeks before the government suggested in Parliament to not foreclose on negative equity cases who could still pay, the banks demanded a $100K topup on his Hillview properties.

I think when the announcement was finally made official, it was more to bail certain ministers out of financial embarrassment than anything else.

During the 90s, fall in property prices and many properties were under water, MAS quietly told the banks to keep quiet and just collect the instalment payments and not ask for top-up. It was the right decision as it will lead to hardship all around.

 

[The_Hypocrite]

Do not forget about Property Developers,,they are the ones asking PAP to limit land releases so property prices keep going up. And to have more cheap labour to build flats and not increase productivity in the construction sector...they are the parasites of the country.

spot on. ALL these bankers and fund managers are crooks of the worst kind . The feds are included and in cahoot with them, if you read the CVs of the managers in the Feds now. alot of them were former fund managers. All these white collar crooks do is sit around and hatch some dubious schemes/ financial "products" all virtual and worthless and does not do one cents good to the economy except enrich them selves. The signs there all along. It is a pyramid scheme in a different fform. Mortagge repackaged again and again and resold and over valued and each time they collect sales commissions and huge year end bonus for selling something akin to hot air!!! That's right, hot air. You cannot eat it nor use it to make your life more ocmfortable but just hope some idiot would buy it after alot of hype. Same with overhype properties and rechurning of insurance. it is commonsense that some idiots should be paids millions and billions for such cheating schemes now pretend it is the financial system and mortgage at fault(when they are the ones who started these sub prime crises). I believe the same thing happened in singapoire and now the mother of all recessions(worse than 1929 ) is on us and I am indeed very happy their bluff has been called. STI is now at 1600 and would hit 1000 soon. Just to illustrate my point, last year alot of financial analysts said the STI would hit 4500 at year 2008 and 5000 by mid 2008. What happened to all these so called "experts"/ idiots who monitored the market and are supposed to be the "best". They are the worst!!! and even a layman like me can predict 2 years ago that a financial storm would hit the world soon. Frankly I am very happy alot of these crap people would get retrenched and have their properties/cars etc repossessed. They deserved it. Car dealers are another a##holes. First they want a free market and now when COEs have drop to $2 they want govt to restrict COEs to protect them. Go to hell these crap and useless scums. COES is another worthless products like lehman minibonds. It takes a recession to show the real worth of these "products" and the bankers/ insurance agents/ fund managers/ car dealers. No wonder alot of businessmen says singapoire cannot compete with HK as there in HK the market whether property or car or stock is completely free of intervention. No cry baby stuff like locally and no nanny state where at the first sign of trouble every idiots run to the govt for help. Just show How good or world class they are.!!!!!!!!

 

[Bigfuck]

Do not forget about Property Developers,,they are the ones asking PAP to limit land releases so property prices keep going up. And to have more cheap labour to build flats and not increase productivity in the construction sector...they are the parasites of the country.

Property Crash is coming to town.

 

[escher]

Do not forget about Property Developers,,they are the ones asking PAP to limit land releases so property prices keep going up. And to have more cheap labour to build flats and not increase productivity in the construction sector...they are the parasites of the country.

You got that the other way around.

It is the maggot in white that limit the land releases.
Since maggot in white have no fucking balls, they got Property developers into the act to pretend it is they that ask for limited land releases.
So blame be on property developers and goondu sinkies will keep voting for the puppet masters, the maggots in white.

High prices meant more $$$$$$$ into smear of shit on sole of shoe LKY Stinkapore sovereign funds of billions upon billions