Ways to use a Reverse Mortgage
#4. Did You Know that we can pay people out of foreclosure, pay off CRA arrears, property tax arrears, and other bad debts? – While these things could restrict the total credit limit we give the clients, we are often times able to make these files work assuming they are old enough and have enough equity to pay off all the bad debts.
Imagine your own parents or grandparents have a family emergency, a major health problem, or get in trouble with a business or investment that goes sideways, and they are crumbling under the financial stress of making a mortgage payment, 2nd mortgage payment, and multiple other bill payments that keep piling up.
They have a home worth $1,000,000, but are going to lose it or be forced to sell if something doesn’t change. Adding a private mortgage for some additional cash flow is just a short term band aid as it pays off the immediate needs, but still leaves them making ongoing mortgage payments that are more than they can handle.
Selling is not something they want to do at this point as the home is a rancher, perfect for aging, plus it would cost them a lot of money in total fees/expenses to sell and downsize, likely putting them into a condo.
A reverse mortgage doesn’t just provide temporary relief. We can clean up all those bad debts, lump them into 1 mortgage and leave them with absolutely zero monthly payments to make. If they want to pay the interest, or even pay it down a bit, they are welcome to do so, but can sleep well at night knowing they never have to. Our product let’s Mom and Dad’s home actually pay for Mom and Dad’s retirement; after all, it’s their biggest investment and source of savings, so why shouldn’t they be able to use some of it to live?