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Flip Flop Mortgage Plan

Reverse it if you lose your job.
  (+5, -1)
(+5, -1)
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If you lose your job, reverse the mortgage so your equity pays you each month. When new employment is secured, switch it back. This would save on defaults and foreclosures.

A small fee would be incurred when switching the thing around, payable when you secure new employment and get money coming in the door again.

Another possibility is to make the mortgage payments using the equity in your house.

Both ideas would add to your loan duration but I'm thinking the bank would rather have your regular monthly payment than a foreclosed house anyway.

whatrock, Sep 21 2016

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       I don't understand that second sentence in the first paragraph, specifically the first word of it: “when”.
Ian Tindale, Sep 22 2016
  

       Interesting proposal. But would people ever bother to pay off their house or simply use it as a savings account?
RayfordSteele, Sep 22 2016
  

       This is Baked.   

       There are bank current accounts secured on property equity. Payments in diminish the outstanding balance. Interest is payable on the full amount of the loan.   

       Probably not WKTE.
8th of 7, Sep 22 2016
  
      
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