Dwight Stewart wrote:
"N2EY" wrote:

Actually, now that I think about it, there is a
certain twisted logic to it. In general, people
are living longer now, so the chances of
someone actually paying off the mortgage is
better than before. Conversely, if the person
dies, the mortgage company gets their money
quickly, from the estate.

On top of all this, such policies insure that the
mortgage companies don't have to worry
about claims of age discrimination.



Or, even better, if the mortgage isn't paid off, the mortgage company can
foreclose and resell the house for a very tidy profit. That alone is enough
to attract many mortgage companies to the elderly.

It's not as lucrative as you make it sound, Dwight. Also, these people
are reasonably well off, retiring with money equivalent to upper middle
class or better.



This may also be why some
mortgage companies actually seem to seek out those who will likely not fully
pay off a mortgage (excessive debt, a history of bad credit, or whatever).
After the mortgagor has partially paid down the amount owed on the property,
the mortgage company can foreclose and retain the property for a much lower
amount than they would have paid in an outright purchase.

Hmm, there are some places I've seen that seem to cater to those
without stellar credit ratings, but they are places like
furniture/appliance/electronics rental places. Plus deadbeats have a
tendency to default pretty quickly, so a mortgage company would have a
real nuisance on thie hands.

- Mike KB3EIA -