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Archive for the ‘Reverse Mortgages’ Category

When you are planning your estate it is important to know all of the tools that are available to you. This does not mean that they will all be appropriate or necessary, but you want to know your options because you may be overlooking a viable solution.

With life spans steadily growing longer it can be difficult for some people to generate the cash flow that they need to meet all of their obligations as they are getting older. It is a matter that is spoken of delicately, but if you live longer than you thought you would when you were making plans this fate may befall you. One way to meet the challenge is to take out a reverse mortgage.

With the reverse mortgage the lender pays you and in return it acquires equity in your home. Since you are not expected to make payments you don’t have to meet any credit or income requirements, and you can’t be foreclosed upon. The only qualifications are that you must live in the home as your primary place of residence, you have to be at least 62 years of age, and of course you must either own the house outright or have significant equity to sell back to the bank or mortgage lender.

Home Equity Conversion Mortgages are backed by the federal government so you can rest assured that these reverse mortgages are legitimate. In fact, you have to go through a HUD approved counseling session before you can close on an HECM so that you are certain that you know exactly what you rare getting into.

The loan becomes due and payable when you move from the house voluntarily or pass away. Most borrowers sell the house to pay off the reverse mortgage and keep the remainder, but you are free to pay the debt using some other source of funding and keep the house if that is what you would prefer to do.

One of my jobs for a very long time included working very closely with a financial advisor and an elder law attorney. I learned a lot from both of them. The most important thing I learned is that long-term care isn’t just about picking a nursing home or a home care agency. Long-term care is also about the legal and financial matters that almost always come up when families are trying to help an aging loved one make choices.

Most families cannot afford to privately pay for nursing home care or in-home care for very long. This wasn’t planned for or budgeted for prior to retirement. Planning ahead is getting more popular, but for our older generations, it wasn’t an option for various reasons.

Because of this I try to make sure I know what all of the financial options are for seniors and their family members. One of them is something that not many of us understand very well- a reverse mortgage.

Reverse mortgages have received a lot of press lately. NBC Nightly news, ABC, CBS….they have all run stories. Of course there are pros and cons to reverse mortgages, but interestingly enough, two large organizations support and advocate them, especially for seniors who need long-term care. The National Council on Aging and AARP both support the use of reverse mortgages in certain circumstances.

A study released by The National Council on the Aging (NCOA) shows that reverse mortgages can be used by over 13 million Americans to pay for long-term care expenses at home, allowing many to remain independent and in their homes longer.
The “Use Your Home to Stay at Home: Expanding the Use of Reverse Mortgages to Pay for Long Term Care” report, funded by the Centers for Medicare and Medicaid Services and the Robert Wood Johnson Foundation, also shows how reverse mortgages can alleviate financial pressure not only for individuals and families, but also for state Medicaid programs and the federal government. Increasing the market for reverse mortgages could save Medicaid $3.3 billion (with a four percent take up rate) annually by 2010.

A reverse mortgage is also called a home equity conversion mortgage. These loans are backed by the federal government (HUD and FHA). Seniors 62 and older are eligible to use this federal program. This is a “non-recourse loan”, which means that the heirs of the seniors are not responsible for repaying the loan. In fact, a reverse mortgage is a loan that does not have to be repaid unless both homeowners (assuming a couple) leave the home permanently, or pass away. No monthly payments are required. The senior is the one who gets paid.

Finally, the money seniors receive from a reverse mortgage is tax free, and does not interfere with SSI or Medicare benefits.
As with any financial transaction, there are other things to consider, and reverse mortgages aren’t for everyone.

However, for the senior or couple who are having trouble making ends meet, this can be a life saver. Some seniors are using the extra cash flow to pay for in-home care, adult day care, pay for prescription drugs, pay off credit card debt, and make much needed home repairs so that they can live safely and more comfortably.

Find a reverse mortgage specialist in your area, and network with them. They might be able to help a senior you know pay privately for care much longer than expected.
For more information visit http://www.aarp.com , http://www.ncoa.org , or http://www.reversemortgagenation.com .

If you would like a FREE REPORT on reverse mortgages, I would be happy to send you one. Just email me at valerie@nextgenfinser.com and I will email or snail mail your report.

Reverse mortgages are a booming industry in which people are buying and selling property at lightning speed every day on the market. It is a great way to make money. Reverse mortgage leads are details about prospective customers made available to reverse mortgage agencies. The most convenient way for a reverse mortgage firm to secure reverse mortgage leads is by getting information from any of the various mortgage lead-generation services available. The information obtained often directs the agencies to the most worthwhile customers.

Commendable and efficient services add value and credibility to the firms providing leads. Reverse mortgage leads can be obtained from the Internet and other mediums, such as telemarketing and call centers.

Reverse mortgage leads are also provided by individuals who work in the field as freelancers. The leads are sold to various companies at very competitive and affordable prices. The right reverse mortgage leads can facilitate business for a reverse mortgage firm.

While looking for reverse mortgage leads, it will be worthwhile to check at least three different lead-generating firms or sites. As the amount and charges may vary with different companies, it is better to rely on one of the firms after gaining thorough knowledge.

Reverse mortgage lead providers work untiringly to formulate a database of prospective reverse mortgage customers. Readymade reverse mortgage leads help minimize the time and effort actually needed to be put in by reverse mortgage companies. These leads also help the companies spend more time in actual business dealings than in qualifying and finding prospective borrowers or customers.