Many seniors are finding themselves in a position where their mortgage is a great burden due to the dramatic loss of value on their properties. Some are having difficulty making their monthly payments or are not making payments at all because of a reduction of income. Some seniors have found themselves with reduced monthly income from investments due to poor financial market activity or the cost of living has dramatically increased and they live on a fixed income.
In many cases, a reverse mortgage can help:
In the case of Joe H. of Lakeland FL, he found himself unemployed and six months behind in payments on his $148,000 mortgage, as well as owing nearly $4000.00 in back property taxes. His unemployment check was not enough to cover all his expenses. He applied for a reverse mortgage and found that his age (65) and the value of his property (which had taken a massive fall), would only qualify him for about $126,000.
Legacy Home Financing was not only able to negotiate a lower mortgage pay off amount (“short pay”), but they were able to do so and still have enough money available to pay his delinquent property taxes.
Joe, who is now working again, knows he no longer has to worry about making monthly mortgage payments for as long as he lives in his home. He now needs only to continue paying his property taxes and home owners insurance, and with his new job he can not only afford to easily make those payments, but he now has money left over to meet other expenses and simply live a more comfortable life.
Joe’s case is not uncommon; many seniors find themselves in a situation where they, too, have experienced a reduction in their property value. They are behind on their mortgage payment due to economic situations. Some have even been forced to rely on their credit cards, adding to their monthly financial burden. For folks like Joe, a reverse mortgage is the perfect solution!
-Gus Corona
