Reverse mortgages are mortgages for the elderly over 60. 62 or, 65 years of age depending on the firm which offers them.
The elderly receive cash once off or regular tax free payments for the value of their home.
The money is not to be paid back by the elderly unless they move out of their home.
An advertising for such a scheme was in one of Tenerife Spain newspapers several years ago, already. It took up almost an entire page. 'There must be big profit in it', I thought.
Generally, cash up front for property value mortgages sounds like a fantastic idea.
Agreeing to reinvestments of too much of it may work out in useless papers whose profitability may be beyond your control.
It's known that sales people of firms who sell such mortgages employ tactics to trick or pressurize the elderly into capital investments. This would, of course, be denied by their management.
It also doesn't mean that such behavior is practiced on a large scale and by all of them.
We should ask ourselves how those companies could survive if they were only handing out money and waiting patiently until
the mortgaged person moves out alive or in a coffin.
Father Christmas doesn't come for free except for children. He doesn't dish out any kind of mortgages in Spain without strings attached.
The firm Senior American Funding which is found in 15 American states has sold more than 100 000000 reverse mortgages since 2004 announced that no more combinations of loans and investments will be sold like the one bought by a suing party.
This answer is not good enough.
Spain/Tenerife property fraud will surely never be detected in the way these special mortgages are handled.
Do we have any insight really when others work with our financial assets unless we employ very recommended financial firms that provide proof?
Caution must be taken as problems with reverse mortgages may only arise much later and, please, note that those schemes have only been around for very few years.
The highly respected firm Blevins Franks is offering the service in Spain. There, one can have the benefits from 60 years onwards. 15 per cent or EU 40 000 ist the minimum which one may cash. By the looks of it one needs therefore a property which is worth at least EU 240 000.
When paid out pension style the EU 40 000 are said to augment progressively by one 1 per cent a year which would make it rise every 12 months.
Perhaps, the idea of discussing the idea of the miracle mortgages for Tenerife or mainland Spain with a good lawyer or a not biased financial adviser before signing anything would not be a bad step.