California Senior trying to decide to pay insurance or get groceries?
Senior trying to decide to pay insurance or get groceries?
Over a 3 day period, I had two seniors call to say they could no longer afford their home loan. Both parties were cash poor, both were living on Social Security and both took out horrible “pick-a-pay” loans by then World Savings, now Wells Fargo.
The good news is both had equity in their homes. One has lived in her home 40 years! The other about the same time.
In my opinion, one party could really be helped by getting a reverse mortgage. She commented to me that she lived last month on $24 for her groceries. Her finances are so tight she has to decide to pay for groceries or her homeowners insurance. When I mentioned that she look into a new reverse mortgage she said she did not want to as she had heard too many horror stories.
Go to this site for information on the new reverse mortgages – http://www.hud.gov/offices/hsg/sfh/hecm/hecmabou.cfm
Is the new reverse mortgage right for you?
It is sad that some of the old reverse mortgages did have some awful consequences for the senior. It makes sense to find out about the new ones and decide if that scenario is right for you or a family member.
Let me know what you think or if there is any topic you would like to hear more about.
Pat Chadwell, Broker
Realty World – Residential Specialists