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<blockquote data-quote="MaddSkillz" data-source="post: 1328207" data-attributes="member: 1159">Finally, Some questions!All RM&#039;s have fees and yes they can be pricey.&nbsp; But that&#039;s up to the homeowner to determine if it is of worth to them compared with the alternatives etc...&nbsp; The biggest difference is an RM does not require monthly payments.&nbsp; Can a homeowner make payements?&nbsp; Yes.&nbsp; So, naturally, if one does not make payments the amount grows over time.&nbsp; The mortgage companies see the profit in the repayment which is typically from the sale of the home.I don&#039;t understand, what is the scam?&nbsp; Why is using equity - let me give an example... A couple had an RV in the driveway they could not afford to put gas in.&nbsp; They also had a house payment.&nbsp; The RM they got eliminated their house payment of roughly $800 a month so.&nbsp; That free&#039;d up funds for their RV.&nbsp; They now travel the country in their RV.&nbsp; On top of that, they were struggling to make the house payment but did not want to move.&nbsp; Foreclosure was a possibility for them.&nbsp; Now the home cannot be foreclosed on because if no payments are required, then they cannot be late.&nbsp; The things they need to do with the home are the same things they did with a regular mortgage.&nbsp; Pay taxes, have it insured and maintain the home.I&#039;m just not understanding how this was a scam for them... Or they lost equity &quot;oh noes!&quot;&nbsp;&nbsp; For these folks equity left in the house after they were dead was not important to them.&nbsp; They had things they wanted to do and without the RM option, they would not have been able to accomplish it.</blockquote>

[QUOTE="MaddSkillz, post: 1328207, member: 1159"] Finally, Some questions! All RM's have fees and yes they can be pricey. But that's up to the homeowner to determine if it is of worth to them compared with the alternatives etc... The biggest difference is an RM does not require monthly payments. Can a homeowner make payements? Yes. So, naturally, if one does not make payments the amount grows over time. The mortgage companies see the profit in the repayment which is typically from the sale of the home. I don't understand, what is the scam? Why is using equity - let me give an example... A couple had an RV in the driveway they could not afford to put gas in. They also had a house payment. The RM they got eliminated their house payment of roughly $800 a month so. That free'd up funds for their RV. They now travel the country in their RV. On top of that, they were struggling to make the house payment but did not want to move. Foreclosure was a possibility for them. Now the home cannot be foreclosed on because if no payments are required, then they cannot be late. The things they need to do with the home are the same things they did with a regular mortgage. Pay taxes, have it insured and maintain the home. I'm just not understanding how this was a scam for them... Or they lost equity "oh noes!" For these folks equity left in the house after they were dead was not important to them. They had things they wanted to do and without the RM option, they would not have been able to accomplish it. [/QUOTE]

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