When Not to Sell Your Home If You Are a Senior With A Reverse Mortgage On Your Home Or Condo

By
Real Estate Agent with Village Real Estate Services, Inc.

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

Orange County Real Estate Website

Orange County Seniors Lifestyles Blog

 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.

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Topic:
Home Selling
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California Orange County Laguna Woods
Groups:
Giving Back
Seniors Real Estate Specialists
Southern California Real Estate Forum
Tags:
senior real estate
senior living in orange county calfiornia
senior moves
senior finances

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Ambassador
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Jeff Dowler, CRS
eXp Realty of California - Carlsbad, CA
The Southern California Relocation Dude

Marlene - you are a true professional, with integrity and ethics. Some might have tried to convince her to list and sell. Somehow this will come back to you, perhaps in a way you don't expect!

Jeff

Apr 09, 2009 03:30 PM #1
Rainmaker
238,029
Marlene Bridges
Village Real Estate Services, Inc. - Laguna Hills, CA
Laguna Homes|Laguna Condos|Laguna Real Estate

Hi Jeff - Thanks for your kind words.  I know you would have done the same thing.  My Dad always taught me that if you do what's best for your client, everything else will just fall into place.  My Dad was one of the smartest men I ever knew.

 

Apr 09, 2009 03:36 PM #2
Rainmaker
510,059
Ann Heitland
Retired from RE/MAX Peak Properties - Flagstaff, AZ
Retired from Flagstaff Real Estate Sales

Reverse mortgage or not, if someone does not need to sell in this market, now is not the time! Congratulations on giving the right advice to your clients.

Apr 09, 2009 04:00 PM #3
Rainmaker
525,252
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Marlene, you have a lot of integrity, to do the right thing for your client, even though you won't make any money based on the advise you gave her!

Apr 09, 2009 04:17 PM #4
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William Johnson
Retired - La Jolla, CA
Retired Real Estate Professional

Hi Marlene, Good Job and doing the right things is always the right thing and never changes. And an interesting aspect of the Reverse Mortgage.

Apr 09, 2009 04:32 PM #5
Rainmaker
552,167
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker-Owner,CRS,CDPE,GRI,SRES, Brea,CA, Orange Co

Hi Marlene,

Good thing she had you.

Apr 09, 2009 04:57 PM #6
Rainer
93,096
Zane Coffin
Century-21 Homestar - Geneva, OH
(Geneva Ohio Real Estate Agent)

Marlene...very nice, if I ever have someone looking to buy or sell in your area I know who to send them to....peace zane

Apr 10, 2009 12:19 AM #7
Rainmaker
238,029
Marlene Bridges
Village Real Estate Services, Inc. - Laguna Hills, CA
Laguna Homes|Laguna Condos|Laguna Real Estate

Hi Ann- You are absolutely right.  When in a down market it's not the right time to sell unless you have to .  In this case, the woman believed she needed to sell.  After a more careful look at the whole picture, it was clear that selling could actually be detrimental.

Hi Regina - The big hug and making a new friend will last longer than any money I would have made.

Hi William - Thanks for your comment.  I know you are a man of integrity and I appreciate the wisdom you always share.  Yes, I thought this story had an interesting twist on the reverse mortgage.

Hi Lynda - I know you would have done exactly the same thing.

Hi Zane - That is one of the greatest compliments you could give in entrusting your friends, family members or clients to me if they are considering moving to Southern California.  Thank you.

Apr 10, 2009 02:35 AM #8
Rainmaker
1,247,582
Steven L. Smith
King of the House Home Inspection, Inc. - Bellingham, WA
Bellingham WA Home Inspector

Marlene,

Congratulations on doing a nice, ethical job of consulting with the lady.

Apr 10, 2009 09:33 AM #9
Rainmaker
238,029
Marlene Bridges
Village Real Estate Services, Inc. - Laguna Hills, CA
Laguna Homes|Laguna Condos|Laguna Real Estate

Hi Steve - Thanks for the nice compliment.  I know you are a man of integrity so given the same circumstances, I know you'd do the same.

Apr 10, 2009 02:20 PM #10
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Christine Donovan
Donovan Blatt Realty - Costa Mesa, CA
Broker/Attorney 714-319-9751 DRE01267479 - Costa M

It sounds like you were a true consultant to this woman, listening to her needs and then explaining to her how best to meet them.

Apr 10, 2009 03:48 PM #11
Rainmaker
238,029
Marlene Bridges
Village Real Estate Services, Inc. - Laguna Hills, CA
Laguna Homes|Laguna Condos|Laguna Real Estate

Hi Christine -  Thank you so much for your kind words.  I'm a little embarassed by all the lovely compliments.  The main reason I wrote the post was to point out how beneficial a reverse mortgage can be when the market makes a downturn.

Apr 11, 2009 03:38 PM #12
Ambassador
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Mike Jones
SUNSTREET MORTGAGE, LLC (BK-0907366, NMLS 145171) - Tucson, AZ
Mike Jones NMLS 223495

Marlene,

Keep right on being embarrassed!  What a wonderful thing you did in that consultation.  God bless, and have a Happy Easter. 

Mike in Tucson

Apr 11, 2009 07:10 PM #13
Rainmaker
238,029
Marlene Bridges
Village Real Estate Services, Inc. - Laguna Hills, CA
Laguna Homes|Laguna Condos|Laguna Real Estate

Hi Mike - Thanks and Happy Easter to you, friend.

Marlene

Apr 12, 2009 02:21 AM #14
Rainer
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Ginger Sala
Wilkinson & Associates, Wilmington NC - Wilmington, NC
Wilmington NC Real Estate & Relocation~

Marlene, this lovely lady was twice blessed: First to have apllied for the RM when prices had peaked, and then to have found you to give her good consel in her time of need. I will add her to my prayer list! Ginger

Apr 12, 2009 07:41 AM #15
Rainmaker
238,029
Marlene Bridges
Village Real Estate Services, Inc. - Laguna Hills, CA
Laguna Homes|Laguna Condos|Laguna Real Estate

Hi Ginger - Thanks so much for your lovely comment and for your prayers for her.

Apr 12, 2009 07:44 AM #16
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Marlene Bridges

Laguna Homes|Laguna Condos|Laguna Real Estate
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