Local Mortgage Expert Shares a Heartwarming Personal Story Concerning Reverse Mortgage for Purchase
This past week I met with Linda Rousseau, a Reverse Mortgage Expert from Merrimack Mortgage Company, Inc., in order to learn more about the HECM for Purchase program to assist my clients.
HECM (Home Equity Conversion Mortgage) for Purchase allows seniors, age 62 or older, to purchase a new principal residence and obtain a reverse mortgage within a single transaction. The program was also designed to enable senior homeowners to relocate to other geographical areas to be closer to family members or downsize to homes that meet their physical needs, i.e., handrails, single level properties, ramps, wider doorways, etc.
During our meeting Linda related a great story to me that I have to share with you. This was her story.
“I received a call from a gentleman inquiring about a Reverse Mortgage for additional income. During the conversation, I started to ask him questions about the subject property, to be sure it would meet FHA guidelines before I drove out to meet with the customer face-to-face. I asked, “What type of home is it?” He responded, “It’s a coop!” I asked, “Did you say cape?” “No, I said coop. Like a chicken coop. It’s a real dump,” he replied. As I continued to ask more questions, it was clear that this property was not going to pass the scrutiny of an FHA appraisal. The man sounded pretty desperate and his home was on my way to the office so I agreed to stop by……Goodwill for a neighbor I had never met.
As I was pulling into his driveway, it was clear that this house should have been torn down! He was waiting at the door dressed in shorts on a very cold winter day. He was a robust, elderly man, with sores all over his legs and a big cheerful smile. I later found out he was diabetic. He led me into the house, where there were piles of debris and barely a path to walk through. After clearing several piles, we found two chairs and sat down to a two and a half hour visit. It was quickly apparent that this man needed help. I feared his health and safety were in jeopardy in this environment. I had been there at least an hour before I realized that there was a dog lying among the rubble that looked as sickly as his owner.
With some patience and perseverance, I was able to find out that he had 50 acres with road frontage on two roads. The house had no value, but maybe the land could get him to a favorable end goal. I asked him if he would like to buy a new home, and maybe have some extra cash set aside to help pay his taxes and insurance, but still be in the same town. He looked at me with a puzzled expression and asked, “How the heck can you do that?” I started to give him a basic understanding of how he could buy a new home with the proceeds from the sale of the land and still have money left over. He liked the idea. I asked his permission to have a few Realtors do a market analysis to see what he might be able to net if he sold the land.
The following week, I had all the data from the Realtor he chose. The following month, he had an offer on the land that would net him $150,000. The Realtor found him a home for $200,000. I would be able to provide him $135,000 from the Reverse Mortgage on the new home. Together that allowed him access to $285,000. He paid the $200,000 to purchase the home, and had $85,000 left in a line of credit. The Realtor had two sales. The customer had a new, clean, safe home with money left to cover his expenses for a very long time.
End goal met! You just need to care enough to think outside the box”.
This is for educational purposes only.
Linda Rousseau, NMLS # 408771
I really enjoyed this story as for me it summed up what working in Senior Real Estate Services is all about. I am pleased to have made a connection with Linda and look forward to working with her.
Linda Rousseau has been a Reverse Mortgage Originator since 2004 and is a continuing education instructor on Reverse Mortgages for NH and Maine real estate licensees. You can reach Linda firstname.lastname@example.org
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Dick blogs about NH Seacoast & Lakes Region real estate and can also be found online at SeniorLivingNH.com, offering a wealth of information and resources on downsizing, rightsizing and relocating for the NH Senior Community.