Reverse Mortgage Loan Blog

Last week we discussed what reverse mortgages were, and if used correctly, the incredible benefits of them, and just as we suspected, our telephones rang off the hook. It was very obvious that many people had never heard of such a mortgage, but that’s okay, it’s never too late to learn. I promise that as long as I can, I will continue to bring workable financial information that can help bring positive results for the betterment of your financial life. As for those of you who missed last week’s article, I’ll recap the strategy of using a reverse mortgage by illustrating a real life case that we had last month; however, due to client privacy we will change the client name to protect her identity; we will call her Mrs. Davis instead.

Ok, here’s the scoop, Mrs. Davis came to our office because she had financial problems. It turned out that she owed three years’ worth of past due property taxes and was in jeopardy of losing her home in a tax sale. Mrs. Davis had lived in her home for the past 45 years, so the good news is that her mortgage was paid off and she was free of making monthly mortgage payments. The bad news was, three years ago she’d exhausted all of her savings in an effort to help her adult son who had a habit of getting in trouble with the law and her daughter lives up north in a low income housing complex and therefore couldn’t afford to help her mother. Mrs. Davis survives off of social security and can’t afford any luxuries; she was also in desperate need of money for home repairs and home owners insurance.

The good news was Mrs. Davis is 68 years old and didn’t have any major health problems, other than high blood pressure, which was presently being kept under control by medication. So what’s the problem? The problem is, many elderly people are in similar situations; they lose their homes unnecessarily to foreclosures or tax sales. The elderly lose billions of dollars each year in property value only because they didn’t know that they had other options such as a reverse mortgage. The good news is, due to the large increase in real estate values that we have been experiencing over the past few years, homeowners are sitting on piles of cash. The sad thing about it is, you don’t have the slightest idea on how to make that cash work for you. Don’t you deserve your money? Besides, despite what you think, you’re grown kids aren’t coming back to live in that old house when you die; they’re going to sell that house and enjoy life, just the way you should’ve.

So stop kidding yourself! As for Mrs. Davis, her home is now valued at $190,000 and using a reverse mortgage, she was able to borrow (with no monthly payments) up to $152,000, which is 80 percent of her home’s value. Mrs. Davis had the option of receiving the money in monthly payments or in a lump sum; we immediately paid her back property taxes and homeowner’s insurance. The money was also used to make those much needed home repairs such as remodeling her bathroom and kitchen and she even paid the expenses for her daughter to come and visit her. This allowed Mrs. Davis to regain a sense of empowerment and strong self worth. Remember, with a reverse mortgage, no monies are paid back until you die and since you’ll be dead, a life insurance policy will pay for you. Enjoy the value of your home and your life while you’re still alive! For more information on reverse mortgages, feel free to call my office and we will send some information out to you.

Found here.

Bookmark It