Many Seniors are being whipsawed by rising inflation and a brutal decrease in retirement assets. The major problem with this drop in asset value is that they have to reduce withdrawals or risk running out of assets to meet their retirement needs. This is a major problem for them. What are they to do? Well a HUD HECM Reverse Mortgage is one possible answer. Remember these are Federally guaranteed loans and they are not dependent on good credit or income. The proposal stage does not even require a social Security Number. Qualification is dependent on Age of the homes owners (all must be age 62 or over), the present market value of the house, and the equity in the house (present value minus first mortgage, any second mortgage and any liens.) Then you also need the residential zip code. All properties must be zoned residential.
What is the benefit for the seniors. They get to live in the house as long as either of them is alive and able to live in the home or until they choose to sell. Their expenses drop immediately by the amount of the mortgage payment less taxes if withheld. their income increases immediately by the same amount they are now saving on taxes. their income may also increase further if they have sufficient equity to secure an equity line of credit or a monthly fixed income stream. Of course a Reverse Mortgage is not right for every potential client! The only way to find out if it works in your particular situation or if it is right for you at all is to contact a Reverse Mortgage qualified lender. You can evaluate this option and some other options that can ease the cash flow burden on on you or the seniors in your life.
Tags: Money, Finance, Hud HECM Reverse Mortgage, Retirement
