We have detailed a couple stories about how reverse mortgages can be utilized to help home owners over the age of 62. Here’s another:
Scenario: Couple are approaching retirement years, their home loan is paid down, but one has a health condition. Their employer goes bankrupt and they borrow from their home to pay medical bills.
Their home enters foreclosure with a balance of $130,000 (principal + interest + fees) owed to the mortgage lenders. The home only appraises for $137,000 in this market. A train wreck of circumstances. The home is sold at Sheriff’s sale for just $90,000.
Both home owners are over 62 years old. They obtain a reverse mortgage approval for $92,000, which will have ZERO monthly payments for the rest of their lives in the home!
The mortgage lenders agreed to accept $95,000 as payment in full for the $130,000 in debt.
Do you know anyone over the age of 62 years who is struggling to keep their home? That might want to afford a snow-bird residence?
Do you know anyone who would like to not have a monthly mortgage payment? Reverse mortgages are real solutions…
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