This morning, I was watching C-Span as I drank my morning coffee. A gentleman from the Association of Realtors was on discussing the housing market. A woman called in and asked about reverse mortgages. She said many seniors are loosing their homes and asked if reverse mortgages can help. The C-Span guest went on to say that when the senior’s home is paid for, they can draw money monthly and ease their financial burden and that it was a good thing. What he failed to mention was, your home doesn't need to be paid off.
The example of a fully paid off home is just one way people take advantage of reverse mortgages. But the people with no mortgages and paid off homes are not the people who are loosing their homes!
Reverse mortgages truly ride to the rescue when seniors are in trouble with their mortgage. Because they don’t have to make mortgage payments with a reverse mortgage, the lender doesn’t worry so much about credit and even if they haven’t been making mortgage payments for months and on the verge of foreclosure, they still may qualify for the reverse mortgage and pay off the defaulted loan and safely remain in their home for the rest of their lives.
What a lifesaver! If you know a senior having trouble making mortgage payments or at risk of loosing their home, tell them to look into a reverse mortgage.