The New Reverse Mortgage helping seniors get through divorce
Senior citizens divorce (also called “silver” or “gray” divorce) is becoming more common, and more acceptable. In 2014, people age 50 and above were twice as likely to go through a divorce than in 1990, according to the National Center for Family and Marriage Research at Bowling Green State University in Ohio. For those over 65, the increase was even higher. At the same time, divorce rates have plateaued or dropped among other age groups.
What is Gray Divorce?
Gray divorce is a term referring to the demographic trend of senior citizens divorce
Divorce, no matter the age can be a traumatic experience. But when the long time family home becomes part of the property settlement, emotions definitely run higher. For most seniors the equity in the family home is their most valuable asset and can cause some contentious discussions on how to best divide it.
The New Reverse Mortgage is there to help when senior citizens divorce
Jack and Diane have decided to part company
After a full life together Jack and Diane had agreed upon an amicable parting. However, when it came to the family home they soon realized they would be forced to sell to meet the terms of their property settlement. Each investigated refinancing but neither met today’s more stringent qualifying guidelines.
How did they handle the family home?
Even though each would net about $250,000 from the sale of the family home, which they soon discovered that in a hot real estate market and those pesky loan requirements would prevent either of them from owning a home comparable to the one they loved and for Diane retaining the family home was priority one.
The New Reverse Mortgage to the rescue
Both Jack and Diane had heard about Reverse Mortgages but thought it was for people who hadn’t adequately planned for retirement. Each had a 401(k) and small IRAs, which along with their SSI would provide them with secure retirement income. But they found that neither could qualify for a new traditional “cash out” refinance to unlock the other’s share of the equity.
When homeownership is the most important thing
We first met with Diane after she had attended one of our free webinars. She was very clear that keeping the family home was most important to her so she could stay close to her grandkids. She was deflated after the trip to her bank and had just about given up hope when we offered a solution that would give Jack his share of the equity and Diane would be able to remain in her home without having to make a mortgage payment.
From thereon the divorce proceedings went smoothly and Jack and Diane are still friends.
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.
Some of this information first appeared on nytimes.com