Reverse mortgages designed to help "house rich, cash poor" seniors meet their day-to-day expenses have gained popularity. Equity is taken out of the home, so debt increases and equity diminishes over time, (unless the property value increases and offsets this use of equity).

Many lenders offer reverse mortgages, and most are set up so that there is no monthly payment as long as the owner or co-owner(s) reside in the home. There are no minimum income requirements, and most plans allow the owner to retain title to the property until they have lived in a different permanent residence for at least 12 full months, sell the property, die, or the end of the loan term is reached.

The Home Equity Conversion Mortgage (HECM) is the only type of reverse mortgage insured by the Federal Housing Administration (FHA). Even if the original loan on the home was not an FHA loan, the reverse mortgage can be.

Seniors should first consider all their options and take a realistic look at monthly expenses. The AARP warns not to take too big of a chunk out of home equity, as this may affect the ability to collect Social Security Income (SSI). As an alternative, the retired home owner can consider downsizing to a smaller dwelling, or relocating to a less expensive neighborhood. Visit http://www.aarp.org/ for more information.

Seniors, when making these important decisions be sure to look for a Realtor® that has the SRES (Seniors Real Estate Specialist) Designation after their name. I AM ONE OF THEM. We have been specially trained to deal with matters that affect you and your decisions that you make. Visit my website to learn more about me at:

http://www.karensvillas.com  And look for this logo in your agent's portfolio.

Karen Villa Schweinfurth, ABR, CRS, SRES, e-PRO, ACRE™

Accredited Buyer Representative

Certified Residential Specialist

Seniors Real Estate Specialist

e-PRO Internet Certified

Accredited Consultant in Real Estate

Now you've gotten a lesson in the "alphabet soup" that we have after our names.