A common misconception I get is that reverse mortgages are only for people that are struggling, and that it is a last resort option for them. I love to see the light bulb moment they have as their confusion turns to understanding when I am able to educate them on how a reverse mortgage actually works and who they are designed for.
If you are among those that believe that only someone desperate would get a reverse mortgage may I just share a quick example with you. This example is actually the first reverse mortgage I worked on approximately eight years ago, and for purposes of this example we will call the borrower I worked with by the name of “Edward”. When I first started working with Edward my thinking was like what some still think today, which was that reverse mortgages were used by those that were desperate. You can imagine my confusion as I got to know Edward and I learned about the successful career that he had, of the money he was receiving monthly, and the savings he had accumulated. Edward was a multi-millionare! I asked Edward why he needed a reverse mortgage, and then he laid out the strategy for his reverse mortgage. The community I live in is composed of a high percentage of retirees and Edward had just moved to my beautiful hometown to retire. The only issue with the move was that it put some distance between he and his two boys and their families. Edward had plenty of money in the bank, and he had a great retirement, but he still wanted to get a reverse mortgage. Why, I wondered? He told me that his plan was to take the equity from his home and use half of it to finish the basement in one of his son’s homes and to use the other half of his money to build a casita behind his other son’s home. This way he would be able to visit them both more often and have a place to stay. Edward told me that he would rather spend his money while he was alive rather than leaving the money that was tied up in his home to his boys to use without him after he was gone. What a great idea! By setting up a reverse mortgage Edward was not touching the retirement income or the savings that he had worked so hard for to build the casita or to finish the basement. Edward helped me to see a different approach to using a reverse mortgage, a strategic approach that allowed him to live better using a reverse mortgage.
This example is not unique, in fact over the years I have found that by far, most homeowners that are using a reverse mortgage are not desperate, and they love their reverse mortgage because it helps them to live better. I would love to help you understand how a reverse mortgage could help you to live better too. Please call or email me to schedule a free consultation at 435-580-2300 or email@example.com.
FORBEARANCE, REVERSE MORTGAGES, AND
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