I got a call yesterday from a senior, age 80, who has decided to sell his home in the desert and move back to the coast. Because I'm a Reverse Mortgage for Home Purchase Specialist, a local Prudential CA agent had referred him to me. I am going to be able to work with the agent and help this client.
Henry had paid $300,000 cash for his very nice manufactured home in a "senior park" where he owns the land; a fee simple property. Today, that home will only net him $140,000 when it sells and he has priced it in order to sell fast on the advice of his agent. While disappointed in the CMA, he took his agent's advice and priced it right.
Now, what he has found is a home in North County San Diego Coastal, CA for $309,000 that would be absolutely perfect for him. It is what I describe as being very "senior friendly". This same home sold for $459,000 around the same time in 2006 when he purchased his current home . He will only have $140,000 available from the home in Desert Hot Springs, CA but it still works for him with no monthly payments. I ran the "Down Payment Approximator" @ http://www.tinyurl.com/32rxg28 for him and it turns out that by using the FHA Reverse Mortgage for Home Purchase program through our bank that he only needs $105,500 down. The proceeds from the loan are an estimated $207,500. He will have no payments to make with the same result to him as having paid all cash.
The Prudential CA Realtor is thrilled at the possibility of helping this senior move to where he wants. He also has a chance of making multiple commissions; on the sale of the current home and the purchase of the new one on the coast. I really do like working with Realtors who understand the tremendous potential of this little understood product.
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