As a professional and perhaps a friend interested in the well-being of those you care about, you may not be quite sure when to recommend a reverse mortgage. You may not clearly see when the reverse mortgage would be the perfect solution.
Here is a list of common challenges many have used a reverse mortgage to help solve.
- Back Taxes, Foreclosure, and bankruptcy –Losing the home that so many wonderful memories are attached or drowning in debt are things that no retiree should have to deal with. Reverse mortgages have saved thousands of homes from foreclosure and the money received can pay off the suffocating debt or taxes and return retirees to a positive financial situation.
- Recent passing of a spouse – The loss of someone one has built a life with is devastating and requires many changes. If the spouse was the one that managed the finances and paid the bills, the surviving spouse may quickly get into financial trouble. Even though the living expenses largely stay the same, the surviving spouse may lose significant income from social security, a pension, or other sources of income.
- Unnecessarily suffering with poor quality of life – Many of the older generation of seniors would rather live on peanut butter and jelly and suffer unnecessarily so that they can pass on ALL of their equity to their children once they pass away. Often times, they have also paid for their educations and their children have a quality of life they have never known. Why not convince mom and dad to take a tropical vacation or a sightseeing trip they have always dreamed of? Perhaps, convince mom she can retire too, and go out to eat more often.
- Health Improvement– Physical well-being can suffer greatly when dealing with financial difficulty. Prescription medicines, and medical care costs continue to skyrocket and many retirees delay or go without life-improving procedures solely because of the cost. Why live in pain daily when a reverse mortgage could easily cover the cost and provide for future care?
- Home improvement – When the family gets together at grandma’s house, everyone tends to gather around the food in the kitchen. Why not expand the kitchen or make changes to the home that make it easier for Grandma to get around? There are incredible technological advances that will prolong one’s ability to care for oneself; machines that can keep track of and dispense needed medications daily, motion sensor monitoring systems to ensure mom doesn’t fall and not receive help, and other items that can help mom live happy and safe.
Not all situations are as dire as those explained here, retirement is meant to be a wonderful time when a person can enjoy visiting family, seeing the wonders the world has to offer, or just not having to worry about money. A reverse mortgage turns a home into an easy way to finance retirement without having a mortgage payment or worry of losing that home. If one had invested in Microsoft stock in the 1980’s they would not think twice of using that investment to finance their retirement, think of your home investment the same way. Why not suggest to someone you know to at least look into how a reverse mortgage would benefit them? Click on this link to see what a reverse mortgage would do for you.