Beware the perils of some real estate options
When the real estate market goes into a slump, as it has now, several supposedly innovative plans are promoted. Two that receive a great deal of TV time are the reverse mortgage, which was designed to supplement the income of senior citizens, and the “pennies on the dollar” purchase of foreclosed properties.
Having been in real estate most of my adult working years, I have seen these promotions come and go. My advice is to study them carefully before taking the plunge. Remember the old adage about no such thing as a free lunch.
Although a good many lenders are in deep trouble right now, anyone thinking of buying a foreclosed home should forget about stealing it from the lender. Although some foreclosed properties move at well below market value, most buyers will have to pay almost the full price.
Post from: Reverse Mortgage Loan Blog
