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THE KOSTER GROUP · One on One With a Professional

• 0:01
  Speaker 1: Good morning, good morning, good morning. Welcome, welcome, welcome.
• 0:04
  Speaker 2: It is at nine thirty two and it's a time
• 0:07
  Speaker 2: to talk to him, Miss Shelley with the Ghost Team.
• 0:09
  Speaker 1: How you doing.
• 0:10
  Speaker 3: I'm doing good. Marled in here on two wheels, but
• 0:12
  Speaker 3: I'm doing good.
• 0:15
  Speaker 1: Well.
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  Speaker 2: You do get around and you have a lot of
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  Speaker 2: people to see, a lot of people to help. Today
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  Speaker 2: we're going to be talking about reverse mortgages, specifically what
• 0:23
  Speaker 2: happens when a homeowner passes away. Now, this is something
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  Speaker 2: that a lot of families face, but they don't fully understand.
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  Speaker 3: Shelley, Well, so it's it's and I've came across this
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  Speaker 3: in a couple of situations, so I thought it would
• 0:36
  Speaker 3: be a great topic to speak about. But reverse mortgages
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  Speaker 3: can be a little bit overwhelming and confusing, and so
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  Speaker 3: what happens when a family member passes away is number one.
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  Speaker 4: Don't panic.
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  Speaker 3: You have time to get things organized, and I just
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  Speaker 3: kind of want to talk about what are.
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  Speaker 4: The main things that you need to do.
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  Speaker 3: Okay, that first thing would be make sure you contact
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  Speaker 3: that service provider that carries that reverse mortgage. Then and
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  Speaker 3: get the timeline that you have to be able to
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  Speaker 3: take care of those finances because there's different options. If
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  Speaker 3: a family member passes away and it's the final family member,
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  Speaker 3: reverse mortgages are going to give you a certain timeframe.
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  Speaker 3: The minimum is six months, but they some will do
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  Speaker 3: two months. It just really depends on that service provider.
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  Speaker 3: So that's why it's important that's the first call you make.
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  Speaker 1: All right, that's good.
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  Speaker 2: Now when we talk about the reverse mortgage, people still
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  Speaker 2: have a hard time understanding that.
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  Speaker 1: They still don't know.
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  Speaker 3: Right, They still don't understand what that is. And that's
• 1:41
  Speaker 3: why I thought bringing clarity to that.
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  Speaker 4: And I know we talk.
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  Speaker 3: About this tom on on every one of these that
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  Speaker 3: we do, but it really is having that communication with
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  Speaker 3: your family and knowing and understanding and up front. So basically,
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  Speaker 3: what reverse mortgages do is they help people that elderly people.
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  Speaker 4: You have to be.
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  Speaker 3: Sixty two or older to be able to qualify for one.
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  Speaker 3: And what they do is it's kind of reverse. Instead
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  Speaker 3: of making payments, they're going to pay you the value
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  Speaker 3: of the home. No payments are made by that homeowner.
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  Speaker 3: The property still stays in that name. But then when
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  Speaker 3: they decease, they either you can either pay it back,
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  Speaker 3: you can refinance at the siblings to get together, refinance it,
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  Speaker 3: pay off the loan. The first thing they want to
• 2:27
  Speaker 3: do is contact I mean as a realtor. That's what
• 2:30
  Speaker 3: we do, and there's no obligation. We go in there
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  Speaker 3: and give you the value of the home, so you
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  Speaker 3: can make an antidate caated decision, right, and should I
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  Speaker 3: refinance the home, keep it and sell it?
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  Speaker 4: What is the equity in it?
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  Speaker 3: That's the most important, right, what is the balance on
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  Speaker 3: the reverse loan? And what's going to be my best
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  Speaker 3: option moving forward? And then we go in and look
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  Speaker 3: at that. What about the maintenance of it? What are
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  Speaker 3: you going to have to invest in it to get
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  Speaker 3: out of it to see if it's worth letting it
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  Speaker 3: go back or or refinancing it and keeping the equity
• 3:03
  Speaker 3: out of it.
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  Speaker 2: So you do have options with this though. Yes, you
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  Speaker 2: can sell, you can move out permanently or like you said, you.
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  Speaker 3: Know in some elderly people, some people think oh it's
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  Speaker 3: a scam, and it's it may not always be the
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  Speaker 3: best option, but for some they may need it for
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  Speaker 3: supplemental income, they may need it to cover medical expenses,
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  Speaker 3: and they are responsible for it until if they move
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  Speaker 3: out and go into assisted living. And the home becomes
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  Speaker 3: a vacant, you notify that reverse mortgage servicer and then
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  Speaker 3: you make arrangements. Then the one key thing I want
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  Speaker 3: you to understand is that or the people to understand
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  Speaker 3: is that it's they'll give you time. If they say
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  Speaker 3: two months or six months, they'll allow you up to
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  Speaker 3: sit twelve months. Most service providers will to give you
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  Speaker 3: that extra time because it's very overwhelming, right, you may
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  Speaker 3: need to do in a state, sell, anything like that.
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  Speaker 3: So my advice is always call someone that can help
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  Speaker 3: you walk you through that process.
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  Speaker 2: All right, So what actually happens when the homeowner passes away? We,
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  Speaker 2: like you said, we got to thirty days and we
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  Speaker 2: got the It's just it's everything step one step, two
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  Speaker 2: steps free.
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  Speaker 4: Right.
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  Speaker 3: So the first thing that you're going to do is
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  Speaker 3: again provide that service provider. You're going to have to
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  Speaker 3: have their's death certificate, and then you want to know
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  Speaker 3: what is to do and pay it bull at that point,
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  Speaker 3: that's your first option, your first step, and then we
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  Speaker 3: kind of can help you or somebody help you walk
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  Speaker 3: through so you could make an educated decision on is
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  Speaker 3: it going to be worth it or is it not
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  Speaker 3: going to be worth it. Now, if you choose to
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  Speaker 3: let it go back to that service provider and they
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  Speaker 3: do sell it for more than what their loan is,
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  Speaker 3: that equity does go back to that family.
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  Speaker 2: Oh okay, good, So we do have choices here, Yeah,
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  Speaker 2: what if we want to keep the home.
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  Speaker 3: If you want to keep the home, then your option
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  Speaker 3: is to pay off that loan, pay off the reverse
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  Speaker 3: mortgage loan, and then you can either keep it or
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  Speaker 3: you know, then you can sell it. So that's where
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  Speaker 3: we come in to help you just determine if it's
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  Speaker 3: going to be worth it or not. You have to
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  Speaker 3: remember if it's it's already emotional time and you've already
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  Speaker 3: lost a loved one, and so it really every situation
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  Speaker 3: is going to be different. Every situation is going to
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  Speaker 3: be different.
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  Speaker 1: But it does kind of protect you from overpaying, doesn't.
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  Speaker 4: Yes, it does protect them from overpaying.
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  Speaker 3: It protects them from making sure they're not keeping an
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  Speaker 3: asset that we're not going to be able to get
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  Speaker 3: it out of them.
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  Speaker 4: That's what we try to do.
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  Speaker 3: Because not every family member has the means to pay
• 5:31
  Speaker 3: off that mortgage. They can also refy it and determine.
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  Speaker 3: But before we determine that, we want them to make
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  Speaker 3: that educated decision, So we look at are their maintenance
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  Speaker 3: things that that's that the family is going to have
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  Speaker 3: to go in and do to get it to sell.
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  Speaker 2: Okay, So then there is of course the most common
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  Speaker 2: people do wind up selling them.
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  Speaker 4: They do wind up selling them if it's not the best.
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  Speaker 3: But again you're protected a little bit because if they
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  Speaker 3: if they sell it for more than what's owed on it,
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  Speaker 3: that equity still goes back to that family.
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  Speaker 1: Okay, very good.
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  Speaker 2: And also what about walking away.
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  Speaker 3: If they walk away, then it goes back, so the
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  Speaker 3: home still stays in the individual's name, right, And so
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  Speaker 3: the most important thing to know is that there's no
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  Speaker 3: unless the siblings are on it, there's no family member
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  Speaker 3: is obligated to that debt. It doesn't affect the family
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  Speaker 3: member in any way. If they choose to just walk away,
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  Speaker 3: the bank basically takes it or the service provider takes it.
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  Speaker 3: They sell it and hopefully they get what the what
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  Speaker 3: is due, and again any extra would go back to
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  Speaker 3: the family.
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  Speaker 2: And here's where you know your service just becomes a valuable.
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  Speaker 1: People will try to do.
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  Speaker 2: This on their own, and there are just plenty of
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  Speaker 2: opportunities honest mistakes to.
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  Speaker 3: Be yes, yes, and people not to understand you want
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  Speaker 3: to and I go back to this, I know every time,
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  Speaker 3: but start having these conversations early. Help them understand why
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  Speaker 3: they are still in the mindset to make that decision
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  Speaker 3: if that's going to be their.
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  Speaker 4: Best option for them. Help them.
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  Speaker 3: The siblings need to know, all the family caregivers need
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  Speaker 3: to understand it so that everybody's on the same page.
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  Speaker 3: That's easy to do when you know you have a
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  Speaker 3: longer period or the earlier you start. There's always situations
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  Speaker 3: Tom when we lose parents unexpectedly.
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  Speaker 1: Yeah.
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  Speaker 3: Right, And again that's where you want to come in
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  Speaker 3: and get us as a professional. It's we're going to
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  Speaker 3: be as honest as we can be and tell you
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  Speaker 3: if it's going to be worthwhile, let it go back
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  Speaker 3: or let's refy it because you have a lot of
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  Speaker 3: equity in it, and let's sell it and you can
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  Speaker 3: take the equity out of it.
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  Speaker 2: And one thing you guys are great at is communication, communication, communications.
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  Speaker 3: Right, yes, and we you know you want to make
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  Speaker 3: sure if your if your family members are getting to
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  Speaker 3: that and they have a large state sell we have
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  Speaker 3: we have relationships with a lot of estate salespeople, cleaning people,
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  Speaker 3: all that that we're going to help walk you through it.
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  Speaker 3: But the more prepared you are when that time comes,
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  Speaker 3: because it's it's an overly emotional time and that's the
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  Speaker 3: last thing you want to have to deal with.
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  Speaker 1: Now for if you have living parents.
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  Speaker 2: Once again we already talked to we need to get
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  Speaker 2: in on this early. They still have that reverse mortgage,
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  Speaker 2: what should they be aware of? What are the red flags?
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  Speaker 3: So the red flags really are they need to fully
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  Speaker 3: understand what that means. What is the purpose of the
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  Speaker 3: reverse mortgage? Do is it something that they actually need?
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  Speaker 3: Most of the time they're not going to have a
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  Speaker 3: large investments or cash. But if if something would happen
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  Speaker 3: to the family, there's always they have that option. If
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  Speaker 3: they had a life insurance, they could use that to
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  Speaker 3: pay off that reverse mortgage and then sell the home.
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  Speaker 3: Just you want them to know all of the options
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  Speaker 3: and you want it to be really set. Go back
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  Speaker 3: to where we talked about when you're before you get
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  Speaker 3: to that place, have a will, have a trust set
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  Speaker 3: up so that it's clearly outlined for the siblings. There's
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  Speaker 3: nothing I hate worse than to see a family tour
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  Speaker 3: part after a family member passes away, and it's unfortunate
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  Speaker 3: that it happens more than it doesn't.
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  Speaker 2: I watch out front paid taxes, yes, assurance and things
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  Speaker 2: like that.
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  Speaker 3: Yes, yeah, and you know, I mean, let's be honest,
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  Speaker 3: I get so busy, I let things slip, right, But
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  Speaker 3: as parents, as we age, we forget about things like that.
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  Speaker 3: So you want to go back and look at all
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  Speaker 3: of that and see what's going to affect that loan,
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  Speaker 3: not just beside the reverse mortgage, but what else is
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  Speaker 3: what other leans do we have on it? If there's tax, liens,
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  Speaker 3: unpaid insurance, things like that.
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  Speaker 2: And always encourage that conversation, like you said, where are
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  Speaker 2: the documents?
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  Speaker 1: Where do you keep yes papers?
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  Speaker 4: Mom?
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  Speaker 1: Hey Dad? What about this over here? Just checking? You know.
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  Speaker 3: Yes, Always be the more prepared you can be, the
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  Speaker 3: better off you are.
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  Speaker 2: And I like the way you said that being prepared,
• 10:00
  Speaker 2: because it's not You're not telling mom.
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  Speaker 1: And dad what to do. They're not going to.
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  Speaker 3: Stand for now, And again we go back to having
• 10:07
  Speaker 3: that open conversation.
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  Speaker 4: We want it to be their decision.
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  Speaker 3: We just want to make sure that they understand all
• 10:16
  Speaker 3: of the information and all of the details about it
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  Speaker 3: because reverse mortgages. There's a lot of misconceptions out there
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  Speaker 3: about it.
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  Speaker 2: Yeah, now we touched on this earlier. But if someone
• 10:27
  Speaker 2: is dealing with this right now and in the moment,
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  Speaker 2: the emotions are just all over the place, you can't
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  Speaker 2: help it, you really can't.
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  Speaker 3: But you need to contact You need to contact them again.
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  Speaker 3: You need to make sure that you understand what is
• 10:44
  Speaker 3: it that they have and the first communication should be
• 10:46
  Speaker 3: to that service provider, and then you contact somebody to
• 10:49
  Speaker 3: see what the home is actually valued at that you
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  Speaker 3: that's me.
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  Speaker 2: And also again, conversations, conversations, conversations. The earlier the better,
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  Speaker 2: doesn't have to be a sorrowful, sad conversation.
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  Speaker 1: It's like, have you thought of this right?
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  Speaker 3: And if you started early on, you're helping them be
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  Speaker 3: prepared and they feel like they're a part of it
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  Speaker 3: and you know what their wishes are.
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  Speaker 4: Right, you're prepared that way.
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  Speaker 3: It's it's mom or dad, where are all of our documents?
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  Speaker 3: If something should happen, who's got that? Who's prepared that?
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  Speaker 4: Who do I go to?
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  Speaker 3: Because we don't do it intentionally and we never mean
• 11:25
  Speaker 3: to be a burden to our family members.
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  Speaker 4: But you don't know what you don't know.
• 11:30
  Speaker 1: That's true.
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  Speaker 2: I got to tell you, Shelley, because of this show
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  Speaker 2: and the information that you've been I've got the book.
• 11:35
  Speaker 1: It's all right there.
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  Speaker 3: Yeah.
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  Speaker 1: Hey, in case something stupid happens, it's all here.
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  Speaker 4: That's right, that's there, you know.
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  Speaker 2: So I'm not saying you need to get a book together,
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  Speaker 2: but you've got to have the conversation.
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  Speaker 3: Yes, they have the conversations with your siblings too, better
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  Speaker 3: because I have that up front and everybody be on
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  Speaker 3: the same page.
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  Speaker 1: Yeah.
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  Speaker 2: Because and again somebody's saying, well, you're being sneaky.
• 11:57
  Speaker 1: On it now. No, no, no, we're talking about it.
• 12:01
  Speaker 3: Yeah, And nobody wants to have that conversation. Nobody wants
• 12:05
  Speaker 3: to have it, but it's so important to do.
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  Speaker 2: So it is final thoughts for our folks who are
• 12:11
  Speaker 2: listening in today and taking news.
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  Speaker 3: Well, I would just say be knowledgeable about it and
• 12:20
  Speaker 3: follow the right steps and just know because you can
• 12:23
  Speaker 3: be so overwhelming.
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  Speaker 4: Don't let time lapse. And timing is everything.
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  Speaker 3: So there's you need to make sure that you're following
• 12:32
  Speaker 3: those steps so that you are in contact with that
• 12:35
  Speaker 3: service provider. You do have somebody, We're happy to take
• 12:39
  Speaker 3: that if they'll talk to us and help them make
• 12:41
  Speaker 3: that decision for them. Again, we're here to make it
• 12:44
  Speaker 3: as stress free as possible under such harsh circumstances.
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  Speaker 1: So guys are angels, is what you are?
• 12:52
  Speaker 4: Thank you.
• 12:52
  Speaker 1: Where do we get a hold of you?
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  Speaker 3: Well, I'm Shelley Cosher with the Coster Team and Keller Williams.
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  Speaker 3: I'm a senior real estate specialist. You can contact me
• 12:59
  Speaker 3: at nine to one eight nine one four three four
• 13:02
  Speaker 3: four four, or visit me on social media as the
• 13:06
  Speaker 3: Coster Team or Shelley Coster.
• 13:08
  Speaker 1: Thank you, sell You're welcome. Thank you folks you've been
• 13:11
  Speaker 1: listening to one on one with a problem.