Recently I visited with a lady in Laguna Woods, California who called to ask me to help her sell her condo. She has a large, well-furnished and upgraded unit. She is no longer able to manage taking care of herself on a full time basis. She needs some assistance with bathing and dressing and meal preparation. She thought it might be time to consider moving into a place that could care for her needs. She is currently being assisted by a wonderful caregiver who will be returning to her native country at the end of the year,
So, just as I would with anyone who is thinking about selling their home, I prepared a complete package with plenty of information about the housing market and information about her home in particular. As we visited, she told me she had a reverse mortgage. She was concerned it might be a problem. As I reviewed the paperwork, it became apparent that this sweet lady had gotten a reverse mortgage a few years ago when her condo was appraised at over $400,000. Today, we'd be lucky to find a buyer who'd be willing to pay $250,000. Now, here's the interesting part. She's only used about $225,000 of her reverse mortgage and still has over $50,000 left to draw against her line of credit.
We chatted for a bit and I shared with her that I really think she needs to continue to use her Long Term Care insurance policy for assistance in her home until it runs out in about 3 years. Then, she can begin using her equity line on her Reverse Mortgage to pay for in-home care. Then, if the market has bounced back by then, we might consider selling her condo. She is so fortunate that she took advantage of the opportunity to get a reverse mortgage when her property value was at it's peak. She now has money that she'll be able to draw out even though her property value has declined in our current market.
It sure felt good to be able to let this lovely lady know that she would be able to live comfortably in her own condo for the next 5-6 years. It would have been perfect if I could have assured her that our market will come back up again in those 5-6 years, but alas this is not a fairy tale. This is real life.
As we parted, we hugged and she told me how grateful she was that we had met and that I didn't tell her what she wanted to hear, but confirmed what she suspected to be true. I didn't list a condo today, but I sure made a new friend.
If you are a senior or know a senior who is considering buying or selling a home or condo, I'd be pleased to provide you with information to assist you in making informed decisions. It's my pleasure to provide my clients with information to assist them in making informed decisions when contemplating buying and selling homes in Orange County, California. If you have questions and would like some honest answers or need more resources, please give me a call, text me or email me.
Marlene Bridges, REALTOR®
800 777-1775 - Toll Free ~ or ~ Text Me 714 745-2592
SRES - Seniors Real Estate Specialist®
CRS-Certified Residential Specialist®
President - Laguna Hills/Laguna Woods Chamber of Commerce 2007-2009
President Elect - Southern California Chapter Certified Residential Specialists® 2008 - 2009
Marlene is a highly experienced and respected South Orange County CA REALTOR® specializing in residential Real Estate and the sale of Homes and Condos in South Orange County, California and Saddleback Valley cities of: Laguna Woods, Laguna Hills, Laguna Niguel, Laguna Beach, Rancho Santa Margarita, Lake Forest, Dana Point, San Juan Capistrano, San Clemente, Aliso Viejo, Mission Viejo.