Even today with all the commercials on television about reverse mortgages featuring famous actors, politicians and entertainers, I am amazed that there are older Americans here in Southern California who do not know about reverse mortgages!
I received a client referral Friday from a notary who met with a couple to notarize loan modification documents with a large bank. (Note- my opinion - the bank modification department should be required to tell homeowners over 62 about the possibility of obtaining a reverse mortgage) The elder homeowners were going to get monthly payments reduced by less than $200, and confided to the notary that they were extremely stressed about even being able to make the new lower mortgage payment. The notary recognized that they were both quite elderly and likely to qualify for a reverse mortgage as they only owed $150,000 on a home in Los Angeles. The notary explained a little bit about Reverse Mortgages to them and asked them if he could have me give them a call to see if I could help. They agreed and I contacted them.
In their late eighties (extremely active, alert & healthy) they qualify for a reverse mortgage that will enable them to eliminate their monthly payment, remain in their home and have sufficient funds for taxes, maintenance, insurance, and a decent sized line of credit for emergencies.
When I contacted the couple’s daughter to review the loan program with her, she began to cry with relief, seeing that her parents would no longer have to worry about making a house payment. She had been feeling so helpless as she was unable to assist them financially herself due to her own economic worries caused by this recession.
The homeowners and their children had no idea that there was such a program as reverse mortgages. Finding out that it was an FHA Insured loan program helped them to feel even more secure about it.
It is my mission to inform every American over the age of 62 about the facts of reverse mortgages. Though you may never need to use one, like CPR, life vests & spare tires ....everyone should know about them and how the work.
Spread the word.