A Reverse Mortgage could have made a difference…
Getting a Reverse Mortgage can be a life changing decision. Not getting a Reverse Mortgage can too.
John and Linda were like most pre-retirement couples, they wanted to see if a Reverse Mortgage fit into their retirement plans. John was 64 and Linda had just turned 62.
John had worked for the same company for almost 30 years and they had managed to save about $100,000 in his 401(k). Aside from the occasional part time work, Linda had been a stay at home mom raising their three children. They’d lived in the same home for more than 20 years and wanted to remain there.
When we met I asked about their retirement concerns and they were worried they would outlive their savings. Because they had a great deal of equity built up in their home we found a reverse mortgage program that would not only pay off their existing mortgage which would save them $1300 a month but also give them a line of credit for those unexpected “life events” that could derail their retirement.
Before they decided, they wanted their kids to be part of the decision making process, so at our next meeting I explained to the two kids present how the program would work and the “safety net” it would provide their parents in the event something unforeseen occurred. The kids saw the value and agreed it was the right thing to do. However the youngest son was 100% against the program and refused to participate in any of the consultations. The term he used was “scam”.
Not wanting to upset the family dynamic, John and Linda decided to pass on the Reverse Mortgage for the time being in the hope they could get their son “on board”
A few months later I reached out to them to see if things had changed. I found out John had passed away. He’d had a massive heart attack and the medical expenses not covered by his health insurance had drained most of their savings.
Linda now had a home she couldn’t afford along with unpaid medical bills. To further complicate matters Linda was now only entitled to fifty percent of John’s SSI, which created a severe monthly cash flow problem. She also has some tough decisions to make about where she will spend her remaining years.
It would be great if every story had a happy ending but while a Reverse Mortgage couldn’t have prevented John’s passing, it would have given Linda the peace of mind knowing she could remain in the family home.
The New Reverse Mortgage isn’t for everyone…but it could be!
If you’re still wondering if a Reverse Mortgage is the right solution for you but you’re not ready to sit down with one of our Reverse Mortgage Experts, then we’ll be happy to mail (or email) you Use Your Home to Stay at Home which is the official federally approved consumer booklet for those considering a reverse mortgage.