"Bad Promises"
A CPA referral partner of mine from NY sent me a desperate woman that needed immediate help.
Martha is a widow, lost her husband 8 years ago, on social security and has a small balance of $5,000 remaining on her 1st mortgage. So you ask, "WHAT'S THE PROBLEM?" The problem is she has $129,500 in credit card debt. This debt is totally out of hand and she has difficulty making her payments and the credit scores were dropping. She told me she went to a couple of local banks, but they said they couldn't help her.
I immediately suggested a reverse mortgage. We have done many of them over the years. In certain situations it's a great option, but her immediate response was, "NO WAY!!" She told me that a number of friends has done this loan and were very unhappy. No Matter what I said, she was not going to change her mind. After many conversations, she finally shared with me, that on her husband's death bed, she promised him never to put another mortgage on their home. During the same discussion with her husband, they discussed a reverse mortgage.
Since I couldn't convince her to do a reverse mortgage, I got her an FHA mortgage. Paid off all her debt, got her some dollars to do some much needed repairs. The net result, she is saving $2,200 a month and has money left over each month and will be able to remain in her home for as long as she can physically maintain it.
I did get a call from her daughter, thanking me over and over. I am fortunate to be doing something I truly love to do.
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