West Warwick, RI · Member since 2016 · 5 posts · 1 vote
so i am wondering
my grandmother has a reverse mortgage she is going to be giving the house back to the bank in two or three months. it has the original furnace from the 1960's in it and it died so she needs a furnace but she can not afford the furnace
she owes way more then the house is worth
if i buy a new furnace and have it installed will i be able to take it back when she give the house to the bank?
i would hate to see her have no heat or hot water for the next two or three months but i definitely don't want to spend $3,000 to $5,000 on a furnace for her just to give it to the bank in a couple months
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
10y
The first question is why is she wanting to "give the house back"? Is a foreclosure pending for some reason....taxes, insurance can't be paid? Was she a borrower/on title for the reverse mortgage? Technically anything installed as a fixture becomes part of the house, but from a practical point no one is going to come looking.
Investor · Denver, CO · Member since 2016 · 213 posts · 57 votes
10y
@Joe Smith the old furnaces are pretty tough... are you sure it is dead and not just needing a band aid?? if the furnace filter gets old and real dirty it will pop a couple limit switches but normally can be repaired. might be worth finding someone to look it over.. also, I thought that the reverse mortgage groups were very stingy on giving out much equity.. sometimes seniors don't fully understand the deal... it might be worth calling them yourself and see if it really is that bad. wish you the best of luck and sorry for this situation....
West Warwick, RI · Member since 2016 · 5 posts · 1 vote
10y
she is giving house back because she really can't live on her own any more and she is going to move in with my cousin
yes i am sure the furnace is dead we been dumping money into it over the years like 4 years ago the guy told me it was so inefficient that its not worth fixing but it is definately dead
the problem with putting the old one back in is the whole setup is being changed up because will be putting in a furnace and a water heater separate along with some acessories i would leave all the acessories and new piping and just remove the water heater and the furnace. i was thinking about filming all this with a newspaper for the date and the old one before it is taken out.
don't know if i should call the bank and ask them because if we don't do anythign and leave it they going to have to upgrade it anyways so they would be saving money on the piping and the accessories if i take just the units back
West Warwick, RI · Member since 2016 · 5 posts · 1 vote
10y
also the old furnace is so old it dont have some thing to mix the hot water like when you turn on the hot water it gets scalding hot this house don't even have circut breakers it runs off fuses
Investor · Denver, CO · Member since 2016 · 213 posts · 57 votes
10y
what is cousin paying for rent or mortgage?? what is grandmothers payment?? It seems like their should be an opportunity here.... maybe not. what if cousin moved in with grandmother and rent out cousins house then spend monies on grandmothers water heater ($1200) and furnace ($1500) +- @Joe Smith Do you mean a boiler with baseboard heat and not a furnace with floor registers and hot air blowing out of them..... boiler has copper pipes everywhere and furnace has big galvanized boxes around it. ?? My older clients I ask how old they are then multiply by 365 and tell them how many times they have spun this earth around.... 95 years old has spun earth 34,675 times... it usually puts a smile on their face. wish you luck
Blue Springs, MO · Member since 2015 · 481 posts · 313 votes
10y
Ask around and see if you can find an HVAC contractor willing to install a used furnace. Some will flat-out say no and some will listen to why you want to do that. You may have more luck with the smaller one-man type shops than the big ones that have a dozen techs and a nice office.
Depending on what kind of furnace you have now, and how much room there is, you might be able to leave the old furnace right where it is. Put the new furnace next to it, and have the HVAC tech swap over the electric, gas/oil pipe, flue pipe, and water lines or ducts (use flex duct rather than having sheet metal bent). Run it for a few months, then have the tech swap the connections back to the old furnace and remove the new one.
There is also a type of furnace called a "packaged unit", that is designed to live outdoors. They are more common down South but you might be able to get one in RI. Basically you plop down a big metal box next to the house that has both a gas furnace and electric A/C in it, and two big holes in the side for the supply and return ducts. Have the HVAC tech hook up electricity, gas, and the ducts and you're in business. For two or three months, you might be able to get away with the supply and return ducts going through a window or other existing opening in the side of the house (attic gable vent?), assuming that doesn't give the building inspector a heart attack.
Landlord · Utica, MI · Member since 2015 · 190 posts · 99 votes
10y
If you install a new furnace. it becomes part of the house. If you try and remove it before turning it over to the bank, you'll find a lawsuit in the mail.
Investor · Denver, CO · Member since 2016 · 213 posts · 57 votes
10y
@Joe Smith Hi Joe, go on zillow and see what they think this house is worth.... It may even tell you if it has hot water heat or a furnace.. also, these reverse mortgages I think work on equity. So if there is more equity in the house than she owes.. when it is sold you keep the equity... So... don't just give it back until you have a better idea of what it is worth.... just because it is a mess does not mean it has no value.... jump on zillow and put in her zip code or address and zoom in on her street. click on her house and it will give you a whole bunch of info including the assessor's site link.
West Warwick, RI · Member since 2016 · 5 posts · 1 vote
10y
i am sorry yes it is a boiler with baseboards and copper pipes not a furnace thank you
theres more to it like my brother so dumb he is going to buy it for her even if she has to give it to the bank
but is retarded to do that
and was just wondering if because it needs a new one any ways if i told bank they come see it is dead and need a new one then we could put it in and take it out?
Investor · Denver, CO · Member since 2016 · 213 posts · 57 votes
10y
@Joe Smith It seems that your grandmother would stay if the boiler was fixed. this old house has worked mostly ok on fuses for 90 years and should be ok for a few more. if you haven't already ... My suggestion is to get a boiler service guy (probably a smaller company) out and get an estimate of what it will cost to repair the boiler so she has heat.. you don't need it working like new just want it to heat..Then you can make more decisions...OK My knowledge on boilers is not great but basically you have a oil or gas burner, a pump and pump motor, piping and zone valves, and pressure gauge.... so, thermostat calls for heat then boiler fires up and tries to heat water .... then temp of water high enough to heat with.... then pump kicks on to circulate water to and from boiler... now it could just need water added to the system.... or the main pump and or motor could be shot... I just had a pump replaced here and it was $450 for parts and install. and the motor was OK... all in all the boilers are pretty basic that is why they last so long.