[mroades]

I just want to say that I was in this same sinking ship a year ago, and thanks to the kindness of both strangers and friends, I am now halfway to the top of the very deep hole I let myself fall into. I do hope to be able to pay it forward someday soon, so while I can't do much to help right his second, know nasalberry and overthehill, that people can, will and do helo, and you can find your way. I did have to learn to ask for help though, and that was NOT EASY.

[jetsmom]

Nasalberry-where are you? Maybe we can help with getting your horse's shoes pulled/feet trimmed, and some other stuff...

[cloudyandcallie]

I saw 2 items.

Naselberry, despite the name, yes I know all of you on one board chose "snot" names, and despite the fact you have the manure pile which had the litter box, if you have any bits or black reins or black leathers for sale, I'd be interested in buying them.

OP on this thread is in the sticks, outside of Gainesville, I'm told. So she's out in the country. Way out.

I don't like the idea of a reverse mortgage, because then she can end up without her property. As long as she has the land, maybe she can lease some out.

OP, we'll need the name of the feed store, or a paypal addy, or if someone down there could take a load of hay and some cat and dog food, and people food, I'll contribute.

And naselberry, PM me if you have any of the items I've mentioned. I need to remeasure Cloudy's wide mouth, and Hattie's little mouth for bit sizes.

One of the important reasons for getting involved in the community and whatever religion or hobbies you have, is that when you do fall on hard times, neighbors and people will help you out. Not having any friends and isolating yourself from people ends up, when family refuses to help you, leaving you without anyone or anything. Please everyone get involved in your communities. Even the small ones like OP lives in.

Oh yes, and naselberry, while I cannot cone up to Ohio and pull shoes with my handy tools that a cother told e to buy (and which work when a horse has a loose shoe) I will pay the farrier to pull those shoes and trim. Tell your farrier to set up a paypal addy, and I'll pay him the day before he is due to pull shoes/trim.

[FlightCheck]

I know several people "in the sticks, outside of Gainesville". If CloudyandCallie or someone else can PM me, I might be able to arrange some help.

[pj]

What I have decided to do is to go ahead with the reverse mortgage, that will help put me right-side-up again. Use a little of the money to make improvements in the cottage, and put the place on the market, quietly at first, but with the end plan of selling within three years. Put the rest away so that I have a ready downpayment for the place I eventually find. r.

I guess I am not understanding how a reverse mortgage works. I thought they gave you the money, you got to live there until you died but the place was theirs?
You can still sell it and then pay the mortgage back?

[Louise]

I guess I am not understanding how a reverse mortgage works. I thought they gave you the money, you got to live there until you died but the place was theirs?
You can still sell it and then pay the mortgage back?

Yes, that's the way I thought a reverse mortgage worked. And, if it is, I would advise against it because it sounds like the OP would be stuck there. Unless, you sell, pay off the reverse mortgage and you get what's left over. But, that's still not going to leave much of a nest egg.

Sounds like there are a lot of people in Florida who are willing to lend a helping hand and you'll get, not only some help, but, maybe, some new friends, OP.

[pj]

Yes, that's the way I thought a reverse mortgage worked. And, if it is, I would advise against it because it sounds like the OP would be stuck there. Unless, you sell, pay off the reverse mortgage and you get what's left over. But, that's still not going to leave much of a nest egg.

Sounds like there are a lot of people in Florida who are willing to lend a helping hand and you'll get, not only some help, but, maybe, some new friends, OP.

If I were going to do this and like the OP planned on selling the property later I'd be very very clear on what kind of interest that would charged on the repaid money.
Bet it would be a dozy.
I don't mean to be a downer and if I absolutely had to I guess I'd do this but I sure wouldn't like it. OP just be really careful what you get in to.

[halo]

As frugally as it seems she can live, I would resist that reverse mortgage at all costs. She may want to throw in the towel and move closer to town and downsize in a few years, or sooner. She'll have a much easier time of that selling a place that she owns outright. She could end up with nearly nothing if she does a reverse mortgage now.

[chemteach]

OP, glad you managed to feed. My hope for you is that you place your horses and other animals as it sounds like you will face the cliff again. I have seen many folks over my sixty years lose it all to trying to maintain their horses. It isn't worth it. I do not mean this to sound harsh, just trying to help.

[Over the Hill]

I have actually had the reverse mortgage application for a couple of weeks reading and rereading every minute detail of it. Yes, you have to be very careful and very aware of how much that interest is going to be. The amount of the loan is a percentage of the assessed value of the home. The way it works is that they charge you interest on the principle loaned. The interest rate is fairly steep(hovering at 5%) You can take the money in several ways, as a lump sum or as monthly payments to you. They supply you with an amortization schedule, just as with a conventional mortgage and you can see that you can very quickly turn upsidedown with it. Unless you can sell the property within a reasonable period of time for a reasonable price. I know that I can proabably sell this property right now (provided there is a cash buyer out there willing to purchase it as is) and make a profit over what we paid for it. I also know that if I spend a little more money on fixing up what is here, the value will go up. But to do that I have to have some $$. Going the conventional second mortgage route is difficult because of my "retirement" I will not meet the minimum income demanded of banks. Have talked to my bank about this before.
Also, if I sell today, even, I have to have somewhere to go and that also takes money. Money to rent or for a down payment, money for the cost of relocating, etc. I have decided that my best bet is to take the reverse mortgage, use what I need to "fix" up the cottage exterior (new siding), when that is done, put it on the market and with the remainder of the reverse mortgage money, I will at least be able to move out when a sale comes through.

I don't see that I have a lot of other options here, unless I win the lottery. I still can chicken out and cancel right up until the day of the closing which is about a month away. In the meantime, I will be trying my best to come up with alternate solutions, because frankly, I don't really want to have to so it this way.

I am so glad for all of your involvment in this, as it's hard to make these kind of decisions when there is no one to really talk to about it. Thanks.

[Bluey]

Don't forget to figure capital gains taxes if and when you sell.
Those can take a big chunk of the money you thought you would have from the sale.

I hope you have a good CPA looking at your numbers with you.

[suz]

hmm, i can see why the reverse is appealing to you now. however it still scares me!
did i miss a discussion about room mates to help offset expenses and even effort?

[Over the Hill]

Suz, the cottage is only about 500 square feet. One bedroom is 9x10 the other is 7x9.... and one closet to share. It is fine for one person or perhaps a couple who don't accumulate "things". The "grand plan" when we bought was to sell another home and turn that into building a larger home here. Didn't work. He got the other property and his freedom, I got the farm. And, yes, frankly, it scares me, too.

[pj]

I have actually had the reverse mortgage application for a couple of weeks reading and rereading every minute detail of it. Yes, you have to be very careful and very aware of how much that interest is going to be. The amount of the loan is a percentage of the assessed value of the home. The way it works is that they charge you interest on the principle loaned. The interest rate is fairly steep(hovering at 5%) You can take the money in several ways, as a lump sum or as monthly payments to you. They supply you with an amortization schedule, just as with a conventional mortgage and you can see that you can very quickly turn upsidedown with it. Unless you can sell the property within a reasonable period of time for a reasonable price. I know that I can proabably sell this property right now (provided there is a cash buyer out there willing to purchase it as is) and make a profit over what we paid for it. I also know that if I spend a little more money on fixing up what is here, the value will go up. But to do that I have to have some $$. Going the conventional second mortgage route is difficult because of my "retirement" I will not meet the minimum income demanded of banks. Have talked to my bank about this before.
Also, if I sell today, even, I have to have somewhere to go and that also takes money. Money to rent or for a down payment, money for the cost of relocating, etc. I have decided that my best bet is to take the reverse mortgage, use what I need to "fix" up the cottage exterior (new siding), when that is done, put it on the market and with the remainder of the reverse mortgage money, I will at least be able to move out when a sale comes through.

I don't see that I have a lot of other options here, unless I win the lottery. I still can chicken out and cancel right up until the day of the closing which is about a month away. In the meantime, I will be trying my best to come up with alternate solutions, because frankly, I don't really want to have to so it this way.

I am so glad for all of your involvment in this, as it's hard to make these kind of decisions when there is no one to really talk to about it. Thanks.

I guess we all do what we've gotta do.
I hope and will pray that this all works out well for you.

I'm not one to normally suggest anyone try to get public assistance (seen too many cases of abuse and too many people I'd like to snatch out of the programs) but sounds as if in this case it is warranted. Have you checked into that? There is no shame in asking for temporary help when needed. That is what it is there for. Just some food stamps (is it still called that?) for a month or so would help.

[halo]

Don't forget to figure capital gains taxes if and when you sell.
Those can take a big chunk of the money you thought you would have from the sale.

I hope you have a good CPA looking at your numbers with you.

The rules change so fast, but last time I looked, when you sell your primary residence, you can make $250,000 profit with no capital gains tax.

[gieriscm]

hmm, i can see why the reverse is appealing to you now. however it still scares me!
did i miss a discussion about room mates to help offset expenses and even effort?

I know it was mentioned, and if I were the OP I'd look into it. It's not difficult, you can put an add free on CL, and you can find going rates on CL. I had two roommates when I purchased my first house, and they ended up paying 2/3 of my mortgage.

Since you have animals already you don't necessarily have to stipulate "No Pets" as long as they all get along with each other. I found went I had roommates that the ones with pets were better overall as they had fewer options available if they had to move out.

ETA: NVM, saw the space isn't available for it.

[spotteddrafter]

Oh yes, and naselberry, while I cannot cone up to Ohio and pull shoes with my handy tools that a cother told e to buy (and which work when a horse has a loose shoe) I will pay the farrier to pull those shoes and trim. Tell your farrier to set up a paypal addy, and I'll pay him the day before he is due to pull shoes/trim.

Where in Ohio? I'm in SW Ohio, between Dayton and Cincy, and can try to help you!

[houndsRus]

Back in the '90's I was a part of the team that educated mid-western financial institutions on the RAM products.

They are an excellent solution for many folks; a horrible one for others. I don't know the OPs situation well enough to give advice, but I'd make certain any product is HUD insured. I'd also not go it alone. Perhaps she can contact her local public legal services offices for referrals to whatever financial planning resources are available. Her local Sr Center ought to have the contact info.

Best thoughts,
hound

[Over the Hill]

As a requirment, an applicant does have to go through an approved HUD screening/counselling session and be certified as to having completed it.

Bluey: good thinking. I hadn't thought about that. It's been many years since I was in the legal profession handling real estate and it's obvious I've forgotten some things.

Halo: Sure hope you're right about that. Somehow I was of the understanding that there was a limit, just not sure of what it was.

[pj]

Suz, the cottage is only about 500 square feet. One bedroom is 9x10 the other is 7x9.... and one closet to share. It is fine for one person or perhaps a couple who don't accumulate "things". The "grand plan" when we bought was to sell another home and turn that into building a larger home here. Didn't work. He got the other property and his freedom, I got the farm. And, yes, frankly, it scares me, too.

You might still find a roomie even though it's a small house. Some single lady might be delighted to move there with you if she could bring a horse or two and maybe her dog. Not too easy to find places you can have your animals right in your own back yard.
Sounds like it's worth a try to me.