3 Things you may not have known about a Reverse Mortgage
For instance…
1. A Reverse Mortgage can prevent foreclosure. In today’s economical environment it truly breaks my heart to see homes being foreclosed upon that could have easily been prevented. Even if there are a few late payments on the recent mortgage history, a Reverse will often times come to the rescue. Just recently we learned of a couple who lived in their home for more than 15 years and were on a fixed income – not providing enough money each month to stay current on the mortgage payment and energy costs. There home was foreclosed and they are now 70+ years old renting an apartment. Their home, where their family memories occurred for so many years, where they felt secure, where the family gather for holidays…now gone. If they would have know prior, a Reverse Mortgage would have saved them & actually provided for additional “income” every month.
2. Your money is provided tax free. Just like a traditional refinance, any sum of money that is distributed to you from the equity already in the home is non-taxable. Many Seniors these days are withdrawing the equity in their current homes & gifting large sums to living relatives. You will surely want to consult with an reputable Tax Planner, but ofter times this is a much smarter approach to providing for loved ones when the Senior has passed on. If we were to all wait until we passed away in order for our children & grand children to benefit from our estates, often times our descendants would receive only a portion of what was intended…simply because estate tax would consume much of the proceeds. So the morale – give now.
3. Did you know that you will be allowed to keep your home? It’s true. Think of a regular (forward) mortgage. When you refinance with a regular mortgage, the home is still titled in your name as is also the case with a Reverse Mortgage. A very common misconception is that the home will now be owned by the government and they will have all rights to sell, etc… Completely false. Reverse Mortgages have come a long way. When they were first introduced, they had many restrictions that are not present today.
Our Seniors are suffering and many times do not know where to look for local help. The nationalized Television Ads are always on, but seem to never offer a personal representative. Make it a point this holiday season to truly take an interest in the financial health of the Senior in your life.
As always, we’re here to be a resource for you.
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[...] Reverse Mortgage is absolutely one of the best retirement tools available. Why? Let’s put it this way… [...]