Funding Retirement…With a Little Help From My Friends

By
Mortgage and Lending with PS Mortgage Lending 305-791-4874 or 888-845-6630 365768

Funding Retirement…With a Little Help From My Friends

While the reverse mortgage changes have already been implemented, there were many seniors who tried to beat the rush beforehand by applying for a reverse mortgage before September 30. 

The reverse mortgage has become a secondary source of income for many seniors, who suffered irreparable losses during the Recession, and wanted to live a comfortable retirement without having to completely deplete their savings.

While various news outlets have found it completely acceptable to report on the unethical practices of some companies, or, better yet, the unscrupulous practices of some individuals, it’s nice to see that, for a change, one news source is also sharing success stories as well.

In an article published by Reuters, author Margaret Chadbourn shares various stories from seniors who would have otherwise been between a rock and a hard place if not for the reverse mortgage.

One of these seniors, Cheryl Honeyman, a 63-year -old who had inherited her home from her parents four years ago, after their passing, is thankful she applied for the reverse mortgage when she did:

"I had limited options and was up against a wall. It was grim. I was lucky to get this loan when I did.”

For Honeyman, obtaining a reverse mortgage means that she can live on the money she gets from Social Security without having to worry about unexpected expenses in the future.

In truth, Honeyman’s story is a great example because it demonstrates that not all seniors who apply for a reverse mortgage are financially desperate or “on their last legs.” Honeyman is simply taking measures to prevent any future, unexpected expenses from drying up her savings.

In a sense, this is one of the main reasons the changes to the program are being implemented. By controlling the amount of funds that can be disbursed at any given time, HUD prevents borrowers from overdrawing their equity, initially, and not having enough in the future to pay their financial obligations.

The sudden surge in home values as of late have made conditions ideal for seniors who want to obtain a reverse mortgage or are hoping to refinance a previously existing reverse mortgage.

Alba Moesser, an 84-year-old Hispanic literature professor, who has yet to retire, was able to use a reverse mortgage to supplement her son’s budding business proposal. Moesser, who had taken out a reverse mortgage in 2011, refinanced her reverse mortgage this summer.

With the money she was able to help her son rebuild an apartment complex that is rented out now.

Stephanie Moulton, an assistant professor at Ohio State University stated:

"It was originally intended for those borrowers considered house-rich and cash-poor but now it is increasingly used as a tool for seniors tapping equity lines for broader retirement packages.”

In truth, just because the way we think about reverse mortgages is going to change, doesn’t mean the peace of mind it offers for seniors during retirement will disappear. In fact, it will make the program safer for borrowers who qualify.

If you think the reverse mortgage is right for you or you simply want more information, let PS Financial Services know if at (888) 845-6630 or via email at info@PSReverseMortgage.com.

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Information and content in this blog is original to Phil Stevenson

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Phil Stevenson

PS Financial Services

Owner and Principal Mortgage Originator

Certified Reverse Mortgage Professional (CRMP)

LO #365768

NMLS #968090

Cell: 888.845.6630

Miami Mortgages & Florida Mortgages

Copyright © 2013 by Phil Stevenson & PS Financial Services, LLC

Comments (4)

Wanda Kubat-Nerdin - Wanda Can!
Red Rock Real Estate - St. George, UT
So Utah Residential, Referral & Relocation REALTOR

I do love success stories regarding reverse mortgages! My husband and I were talking to his mom and dad about getting one and their other children, who know nothing about the RM, talked them out of it. Sigh* Thanks Phil!

Nov 19, 2013 04:23 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Wanda, I do as well but that's obvious! Personally, I think it was great that your husband and hissiblings were involved and helped them make their decision. Hopefully it was the right one for them.

Nov 19, 2013 04:29 AM
Rebecca Foresee
Alain Pinel Realtors - Morgan Hill, CA
Let's foresee the possibilities . and get results!

Phil, Thank you for sharing the good news stories!  Planning ahead is something more of us need to do.

Nov 19, 2013 01:51 PM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Rebecca, that is very true. Whatever method you chose, it always pays off to plan ahead, or at least have a general idea of where your retirement income will come from. Getting caught off guard spells disaster in most cases.

Nov 19, 2013 11:08 PM