Why are you so afraid of reverse mortgages?

Posted on March 28, 2010 by Beth Paterson, CRMP

I had a call the other day from a daughter who was inquiring about helping her mom who owns her home but is currently in a nursing home. When I mentioned “reverse mortgage” she stated, “I don’t want her to get a reverse mortgage.” Before I could even get a better understanding of the circumstances to see if a reverse mortgage was even an option the conversation ended. With her mind already made up that reverse mortgages “are bad” she obviously didn’t even want the facts.

When a home health care aid, financial advisor, attorney or other professional suggest a reverse mortgage they often can see the “wall” go up and the resistance along with the response, “Oh no, I wouldn’t do that.”

Comments on articles and Blogs or in discussions show lack of information and belief of the misinformation about reverse mortgages. As I have often stated and posted in my Blog, there are many misconceptions about reverse mortgages. So why are you judging them and afraid to get the facts from an expert?

I’ve had seniors tell me that their friends have said they shouldn’t do a reverse mortgage. When I’ve asked them “Why?” the response I receive is “We’ve heard bad things about them.” “They are a scam.” But when I ask what those were or why they think this, they have no response – no real documentation or knowledge of what is bad about reverse mortgages or why they think they are a scam. It is all based on fear and misinformation.

Are you afraid to go to the doctor when treatment can make a difference for a health condition? Are you afraid to go to an accountant or attorney when they can help your circumstances? Why are you afraid of a reverse mortgage when it could make a difference in your life?

Edna explains her experience with the reverse mortgage with this statement: “After retiring I found that my income was too little for the active life I was used to, with trips to family, and a modest vacation each year. But bills were piling up and I needed a real solution if I was to stay in my home! I turned to Beth Paterson for information and was very pleased to learn there were still good choices for my situation and I could stay in my pleasant home avoiding a move! Beth your help was great! My children thank you for the time you took to explain things for them as well. I have my dignity and security back again. What a relief!”

Maybe your fear is based on the unknown. Maybe it’s based on misstatements you’ve heard. You don’t have to be afraid of reverse mortgages! Let’s look at the facts to ease your fears:

A reverse mortgage is a mortgage just like any loan against the home but it has special terms for seniors 62 and older.
The lender or bank does NOT own the home – YOU OWN THE HOME, you keep the title!
There are no income or credit score requirements to qualify.
No monthly payments required.
There is no limitation on how the funds can be used.
More options – Funds can be received in monthly payments structured as needed, line of credit (with a growth rate), lump sum, or a combination of these.
Social Security and Medicare are not affected because it is a loan, not considered income.
Medicaid (Medical in Minnesota) can still be received with the reverse mortgage.
Borrowers can stay in the home as long as it is their primary residence or in the case of a couple as long as one borrower is still in the home as their primary residence. The due date on the mortgage is the youngest borrower’s 150^th birthday.
At the time of sale if the home is sold for more than the loan balance, the borrower(s) or their heirs receive the difference. The bank does NOT keep the difference!
The loan is non-recourse which means there is no personal liability to the borrower or their heirs if they are not retaining ownership. So borrowers or their heirs don’t have to come up with the difference if the loan balance is higher than what the home is be sold for as long as they are not retaining ownership. Borrowers are not leaving a debt to their children.
Just like any mortgage, borrowers still have the title and are responsible for property taxes and insurance, association dues (if applicable), maintaining the property and abiding by the terms of the loan.
A reverse mortgage is a mortgage just like any other mortgage where the borrower is using the equity of their home to meet their needs and desires now.
As borrowers use the funds/equity and are not making monthly payments the loan balance increases meaning because they used the money now, there will be less available when the loan is being repaid. (With a conventional mortgage one is using the equity but making monthly payments which repays the interest and a portion of the principal each month.)
Fees are regulated and only HUD allowed fees are permitted with no mark-ups or junk fees. Even though many times they are considered expensive or high they compare to conventional loans, in fact the difference comes down to the FHA Mortgage Insurance Premium. You can see a comparison of the costs in my article, “Reverse Mortgage Costs – High or Mythical?”
FHA offers and insures through HUD the majority of reverse mortgages known as the Home Equity Conversion Mortgage or HECM, making it the most highly regulated mortgage available.
HUD insuring the reverse mortgage provides advantages including:
- Guaranteeing the funds are available for you.
- Guaranteeing the lender against default or shortfalls which means the interest rates are lower (currently under 4% on the adjustable rate; 5.56% on the fixed) compared to other mortgages.
- Providing a line of credit growth rate (available only with reverse mortgages).
- Insuring as a reverse mortgage it is a non-recourse (no personal liability) loan.
The HECMs are highly protected. See my Blog article “You Need To know Reverse Mortgage Borrowers Are Highly Protected.”

No other loan has as many advantages, protections or benefits to seniors like the reverse mortgage! So are why are you so afraid of reverse mortgages?

About her reverse mortgage, Corine says, “Having a reverse mortgage has taken some of the fear away that I had for the future. I have more means to meet future needs. My experience with the reverse mortgage was most positive. Beth was wonderful and most informative. Very patient and steadfast. I felt I could really trust her to safe guard my interests.”

Kay has this to say about her reverse mortgage, “Steve was extremely knowledgeable and helpful throughout the whole process. I never felt pressured to make the decision by I am very glad I did it, particularly since the volatility of the stock market pretty much wiped out my IRAs! Thank you so very much.”

If you still have your fears of reverse mortgages after seeing the facts and testimonies of those who have benefited from them, contact us so we can address your concerns and provide you with the facts. You shouldn’t have a fear about reverse mortgages.

Everyone’s situation is different and as you do with an accountant or attorney you discuss your situation and get the facts and potential solutions. As a type of home equity mortgage with special terms for seniors, the facts of reverse mortgages should be received from a reverse mortgage expert to determine if it is right for your situation. At least accept the fact that it could be an option and don’t be afraid of them. A reverse mortgage may just improve your life during your retirement as they have done for hundreds of thousands of seniors.

To help overcome your fears, read more stories on how reverse mortgages made a difference for those who did one:

© 2010 Beth Paterson, Beth’s Reverse Mortgage Blog, 651-762-9648

This material may be re-posted provided it is re-posted in its entirety without modifications and includes the contact information, copyright information and the following link: http://wp.me/p4EUZQ-hT

Blog posts’ information is current as of date post published, program is subject to change in in the future. Contact us for current information, 651-762-9648.

This site or the information provided is not from, or approved by, HUD, FHA, or any US Government or Agency.

Food For Thought To Fulfill Key Messages of Social Work Month 2010

Posted on March 19, 2010 by Beth Paterson, CRMP

During March we recognize and honor Social Workers for the value they bring to our seniors. In a variety of roles, with their knowledge and experience in providing resources social workers assist our seniors. The National Association of Social Workers provides a list of Key Messages for Social Work Month 2010. These include inspiring to improve lives and assisting with problem solving as well as resolving issues that may negatively impact the community. I’d like to offer some food for thought tying into these messages.

Ninety-three percent of seniors want to remain in their home. They are comfortable living in the home and community with their memories where they raised their children, know the neighbors, are familiar with the grocery store and the pharmacy. They feel safe and warm in their familiar surroundings. With the home as their identity it gives them comfort being in their long time home. So let’s talk about a couple ways to help fulfill the desires of seniors, improve their lives and help them stay in their home and their community.

Read rest of article at Home Instead Senior Care Burnsville or Home Instead Senior Care Hastings

Blog posts’ information is current as of date post published, program is subject to change in in the future. Contact us for current information, 651-762-9648.

This site or the information provided is not from, or approved by, HUD, FHA, or any US Government or Agency.

Reverse Mortgages Come To The Rescue for Senior Homeowners

Posted on February 28, 2010 by Beth Paterson, CRMP

Are you looking for some funds to supplement your retirement? Do you need to modify your home to meet your needs? Are you looking for a way to pay for the home health care you need? Do you have a mortgage and find making the payments is a struggle? Or maybe you want to continue making your trip south during the winter but funds are short to do so.

A reverse mortgage may be your answer. A reverse mortgage is a home equity loan with special terms for senior homeowners 62 and older. Similar to a conventional loan, you own the home and are responsible for taxes, insurance, and the maintenance. The difference, and the benefit to seniors, is there is no income or credit score qualifications and no monthly payments required. It also offers more flexibility on how you can receive the funds including monthly payments, line of credit, lump sum or a combination of these versus a lump sum with a conventional mortgage.

An additional benefit is funds left in the line of credit grow so more funds become available over time. The loan becomes due and payable when the home is no longer the primary residence of the borrowers or on their 150^thbirthday. Another difference and benefit of the reverse mortgage is that the reverse mortgages are non-recourse loans. This means there is no personal liability if the loan balance is higher than what the home can be sold for and the borrower or their estate are not maintaining ownership.

There are no limitations on how you spend the funds. Look at how the reverse mortgage benefited some seniors:

Eliminate Mortgage Payments, Home Upgrades and Line of Credit: Dee and Peter did a reverse mortgage to eliminate their current mortgage payment, take a lump sum for some home upgrades, receive an extra $300 a month in monthly payments to supplement their Social Security, and still have funds in a line of credit for future use.
Maintain Lifestyle: Helen and Harold did a Reverse Mortgage to afford to take their annual trip to Florida during the winter months. They are thankful they are able to maintain their lifestyle.
Not Rely on Children: Nancy had accrued some debt including some credit cards and borrowing from her children. She did a Reverse Mortgage to pay off those debts and to have a line of credit available for future needs. She also enjoyed having some extra cash to purchase some things to fix up her home and to go to lunch with friends on occasion. Because her children had their own expenses and needs, they were relieved that their mother had done the Reverse Mortgage and could live more comfortably without relying on them.
Protect Other Investments: To have extra spending money without having to cash out their CDs or other investments, Jerry and Carol decided to do a Reverse Mortgage. Providing them more freedom and control of their life during retirement.
Purchase a New Home: Marilyn wanted to purchase a new home so she used the Reverse Mortgage rather than a conventional mortgage to finance her new home. This meant she didn’t have mortgage payments to make and provides her a better cash flow during her retirement years.
For more ideas on how seniors used their reverse mortgage funds visit “Meet Our Borrowers” and “Uses of Proceeds” on our Reverse Mortgages SIDAC website.

As with any mortgage loan there are closing costs. The costs of the reverse mortgage are comparable to a conventional mortgage. They include the origination fee, appraisal, title settlement and recording fees. With the FHA HECM (Home Equity Conversion Mortgage) reverse mortgage HUD regulates the fees and requires that only the actual cost may be charged to the borrower, they do not allow mark ups such as processing fees. As a FHA loan the fees include the FHA Mortgage Insurance Premium – this would be the same if they are doing a conventional FHA loan. When comparing costs side by side to a conventional loan the difference is the up-front FHA Mortgage Insurance Premium. The benefits of FHA insuring the loan include guaranteed funds, a lower interest and the loan being non-recourse as well as regulating the fees. “Reverse Mortgage Closing Costs – High or Mythical” provides a side-by-side comparison.

When considering whether to do a conventional mortgage or a reverse mortgage you must consider if you can even qualify for a conventional mortgage; then if you can make the payments over time. For example, what happens if “life happens,” could you continue making those payments? Would you be stressed trying to pay living expenses, medical bills, or would you be facing foreclosure? These articles can assist you in reviewing what to do: “A Reverse Mortgage Or A Conventional Mortgage? That Is The Question.“or “Is Waiting To Do A Reverse Mortgage The Best Decision?”

When you decide to do a reverse mortgage make sure you work with an originator or loan officer who is FHA licensed, specializes in Reverse Mortgages, has years of experience and knowledge in reverse mortgages in your state, meets the state licensing requirements (for example in MN mortgage brokers need to be individually licensed – even if they are calling you from another state), and are willing to meet with you to review the details, before the application, during the application and at closing. I would caution about working with a lender from another state who is mailing all the documentation, including the application and not “meeting” with you to explain and review what you are signing. Ask for references and find out if they will be there for you even after the loan has closed. If you feel pressured, call another lender. You can find a list of questions to ask an originator at our webite: www.RMSIDAC.com, “Why Choose SIDAC,” “What To Consider When Talking To Lenders.” Or my blog article, “Don’t Let Fear Keep You From a Reverse Mortgage But Know What To Look For In A Lender.”

To ensure that borrowers understand reverse mortgages HUD requires anyone doing a reverse mortgage to complete counseling through a third-party. They will review the program and discuss other options that may be available.

Will the reverse mortgage be the answer to your financial retirement needs? Explore the option, get the facts, know what to look for in a lender, you might find it will benefit you as it has benefited hundreds of thousands of other seniors.

Additional related articles:

Blog posts’ information is current as of date post published, program is subject to change in in the future. Contact us for current information, 651-762-9648.

This site or the information provided is not from, or approved by, HUD, FHA, or any US Government or Agency.

The Impact Of A Reverse Mortgage On A Community Spouse

Posted on February 20, 2010 by Beth Paterson, CRMP

I want to provide the facts on a comment I received regarding a reverse mortgage for a couple where one is considered a community spouse, i.e. one living in the community and the other is not and receiving Medicaid assistance. This person stated that if a reverse mortgage was put in place for a couple to provide the money for the expenses where one needs more in home care than the spouse can give, then after the ill person passes away, the remaining “community spouse” would have no or little money AND no place to live.

In reality, the reverse mortgage is a great tool for keeping seniors in their homes and paying for home care whether a single person or as a couple. An additional benefit for them is the reverse mortgage is not considered income so the borrowers may still receive public benefits such as Medicaid or other county benefits in addition to the reverse mortgage. They can also receive VA benefits if they qualify. Depending on the circumstances, Medicaid could cover the home care costs, the reverse mortgage could be used for things not covered by Medicaid and for the needs of the community spouse, i.e. maintaining the home, paying taxes, insurance, auto expenses, groceries, etc.

With both names on title, when the ill person passes away the community spouse would still have a place to live as they can stay in the home because the loan is not due and payable until the home is no longer their primary residence or on the 150th birthday of the youngest borrower. This means they can still have a roof over their head without having to make monthly mortgage or rent payments.

In fact the reverse mortgage can provide funds for more care than selling and moving into senior housing. When one sells, the net proceeds would be used to pay rent in senior housing as well as for home care whereas when staying in ones’ home the expense is lower, there is no rent payment and they would have a roof over their head. One of my Blog articles, “Be Educated About Your Options of Care And Financing The Care,” compares the differences of costs of selling and moving to staying in the home with a reverse mortgage and receiving home care.

Let me share the story of my clients, Bob and Jean. Jean had some memory loss issues so she was in a memory care Assisted Living facility. At the recommendation of their Elder Law Attorney Bob decided to do the reverse mortgage to pay for Jean’s rent and care. Jean was living in a private pay facility so the reverse mortgage allowed her to remain in the same place and not have her rely on government funding. The reverse mortgage provided them the control and choice of where Jean would live. The reverse mortgage also freed up some cash flow for Bob as the community spouse since Jean’s care was no longer coming from his Social Security or pension.

Reverse Mortgage Benefits MN Community Spouse

When Jean passed away the reverse mortgage funds were no longer needed for her care so there was more funds were available for Bob’s use. When Bob needed some additional care assistance of his own the reverse mortgage funds were used for his home care needs. Bob was able to have funds and live in his home until his death several years after the reverse mortgage was originated. This couple received what everyone of us desires: their desired security (having a place to live), independence (not relying on others), dignity (they could make their own decisions), and control (deciding where they were to live).

Experienced reverse mortgage originators along with a team of an Elder Law Attorney, care manager, and home care agency who is familiar with reverse mortgages can to help determine what is right for a senior’s situation especially when they may need home care or the decision of when one may need a care center.

The reverse mortgage can be a lifesaver for seniors even as a community spouse. Through the years I’ve been fortunate to help many seniors in these circumstances providing them with security, independence, dignity, and control.

Review these additional articles for facts and how reverse mortgages have benefited seniors:

Blog posts’ information is current as of date post published, program is subject to change in in the future. Contact us for current information, 651-762-9648.

This site or the information provided is not from, or approved by, HUD, FHA, or any US Government or Agency.

They’ll Say Anything To Get A Reverse Mortgage Application

Posted on February 6, 2010 by Beth Paterson, CRMP

Marie lives in a manufactured home (sometimes called a mobile home). It’s a beautiful home built around the original form so you can’t even tell it’s a manufactured home. Two years ago I worked with Marie but unfortunately we were not able to do a reverse mortgage because her manufactured home did not meet HUD’s requirements. While we can do a reverse mortgage on manufactured homes they have to meet the long list of HUD’s requirements.

Two weeks ago Marie called and said she had talked with an originator of a large bank who told her that the reverse mortgage can be done on her home. Marie said she had called me because she trusted me. As I discussed the situation with her she said the other originator had told her that they found on the internet that her property had been reclassified. Additionally Marie said at the suggestion of the other originator she had scheduled her required counseling.

Not believing that a manufactured home could be reclassified, I told Marie to cancel the counseling (potential cost of $125 which she didn’t need to spend if her property wouldn’t qualify) and that I would check to see what I could find out for her regarding a reclassification.

After doing some checking on the internet, reviewing HUD’s requirements and checking with an underwriter, I called Marie back to confirm what I initially thought, her property was not reclassified from HUD’s standpoint and HUD would not insure her property. A manufactured home is a manufactured home no matter how much you have done to change the look.

Fortunately Marie had called me – if she had proceeded with the other lender she would have spent $125 for counseling, $450 to $500 for an appraisal and then found out that she still couldn’t do the reverse mortgage. She took it in good humor, stating, “They’ll do anything to get an application.” While I would have loved to do the reverse mortgage for her, I believe in servicing the client even if it means I won’t earn a commission.

Another call I received was from someone who was shopping for lenders. They lived on a rural property and after talking with them about their property I determined that it would not meet HUD’s requirements because of commercial use. This person said they were told by a large bank originator that they could do the reverse mortgage. If they proceed in with the counseling, application and the process with the other lender when the file gets to underwriting (hopefully) or to HUD they will be very disappointed when they learn the reverse mortgage can’t be done, especially when they have paid for the counseling and appraisal, credit and flood certificate fees.

Reverse Mortgages can be lifesavers for seniors but the property has to qualify. Keep in mind that some lenders require originators submit a number of applications as part of their employment, even if they don’t close. These are just a couple of examples, we receive other calls on unusual properties where other originators have led the borrower to believe a reverse mortgage can be done where in fact HUD will not insure the property. While this is not reverse mortgage fraud, I consider it to be unethical.

Seniors should contact and work with originators who have years of reverse mortgage experience not only in originating but also with HUD’s as well as the investor’s requirements, processing, underwriting. Ask for references. Additionally the originator should look out for the seniors, i.e. be a senior advocate – we don’t want to get senior’s hopes up and have them pay out hard earned money if they aren’t going to qualify for a reverse mortgage.

Don’t be afraid to ask the originator questions about their knowledge and experience with the various aspects of reverse mortgages, from origination, processing, underwriting, closing, servicing, etc. Utilize the questions in my Blog article “Don’t Let Fear Keep You From A Reverse Mortgages But Know What To Look For In a Lender.” Additional information can be found on our website: “What To Consider When Talking With Reveres Mortgage Lenders” and “Why Choose Prestige Mortgage, LLC/Reverse Mortgage SIDAC.”

Also read how reverse mortgages have made a difference in the lives of those who do qualify:

Blog posts’ information is current as of date post published, program is subject to change in in the future. Contact us for current information, 651-762-9648.

This site or the information provided is not from, or approved by, HUD, FHA, or any US Government or Agency.

Respect for Oneself Increases With A Reverse Mortgage

Posted on January 29, 2010 by Beth Paterson, CRMP

“A reverse mortgage has brought me bountiful solutions to resolving financial issues. Its benefits enabled me to achieve the means to better enjoy living in my own home. The equity available was spent in several areas for home improvement. Included were remodeling of my bathroom, new carpeting throughout my home, and installment of a sump pump to prevent basement floodings. Herewith also personal challenges, as a pledge to my church fulfilled and travel to family weddings and reunion assured.

“With a reverse mortgage you begin to have independence anew and you begin to feel more secure. Being free from monetary anxiety, you have better control over spending your equity. Thus a respect for yourself increases.”

This is a letter I received from a borrower who had taken out her reverse mortgage over 5 years ago. Through the years I have heard from other borrowers on how the reverse mortgage has made a difference in their lives.

Another borrower called a couple weeks ago to tell me that they are moving into a care center because of with his Alzheimer’s she can’t care for him and it’s not safe for him at home any longer. As we talked she told me how thankful she was for the reverse mortgage and what a difference it and I have made in their life. They did their initial reverse mortgage over 8 years ago and we refinanced it for them about 3 years ago. For years the funds from the reverse mortgage allowed them to maintain their lifestyle and go to Florida and escape the Minnesota winters. No longer able to make the trip to Florida they have used their funds for other needs including medical expenses and home care allowing them to stay at home as long as they could.

Reverse Mortgage Made Difference for MN Man

Dick really wanted to stay in his home of many years. The reverse mortgage funds were used for home improvements and allowed him to participate in a mission trip. Since his reverse mortgage was taken out in 2002 he has called and shared how the reverse mortgage has helped him live his life comfortably and to stay in his home as he desires.

The reverse mortgage has helped seniors retire and still have funds for their lifestyle. Using the funds for home repairs has helped seniors keep up their home so they could remain in the neighborhood where they are familiar. Other times the reverse has been considered a life saver to pay for home care and keep the senior at home where they are most comfortable.

I have specialized in reverse mortgages since 1999 and have helped hundreds of seniors stay in their home with security, independence, dignity, and control. I hope to continue to receive the letters and calls from my borrowers on how the reverse mortgage and I have made a difference in their life. It’s a good feeling knowing that seniors have a better life and more respect for themselves.

For more articles on how reverse mortgages have helped seniors, read:

Blog posts’ information is current as of date post published, program is subject to change in in the future. Contact us for current information, 651-762-9648.

This site or the information provided is not from, or approved by, HUD, FHA, or any US Government or Agency.

Irrational Statements Show Ignorance of Reverse Mortgages

Posted on January 25, 2010 by Beth Paterson, CRMP

Have you made or heard these statements? “Stay away from reverse mortgages!” “I wouldn’t recommend a reverse mortgage.” “It’s the worst thing you could do.” “Reverse mortgages are a scam.” “Don’t do it! Too many things can go wrong.” “Reverse mortgages only benefit the banks.” “The bank owns the home.” “You can outlive the mortgage.” These statements get my ire up because it shows people making these statements don’t know what they are talking about when it comes to reverse mortgages.

Let me give you the facts: A reverse mortgage is a mortgage just like any loan against the home but it has special terms for seniors 62 and older.

There are no income or credit score requirements to qualify.
No monthly payments required.
There is no limitation on how the funds can be used.
Funds can be received in monthly payments structured as needed, line of credit (with a growth rate), lump sum, or a combination of these.
Social Security and Medicare are not affected because it is a loan.
Medicaid can still be received with the reverse mortgage.
Borrowers can stay in the home as long as it is their primary residence or in the case of a couple as long as one borrower is still in the home as their primary residence.
The loan is non-recourse which means there is no personal liability to the borrower or their heirs if they are not retaining ownership. So they don’t have to come up with the difference if the loan balance is higher than what the home is be sold for as long as they are not retaining ownership.
At the time of sale if the home is sold for more than the loan balance, the borrower(s) or their heirs receive the difference.

Just like any mortgage, borrowers still have the title and are responsible for property taxes and insurance, association dues (if applicable), maintaining the property and abiding by the terms of the loan.

FHA offers and insures the majority of reverse mortgages known as the Home Equity Conversion Mortgage, or HECM, making it the most highly regulated mortgage available. Lenders are regulated by RESPA (Real Estate Settlement Procedures Act) and HUD (Housing and Urban Development). Funds are guaranteed by HUD. Application and Closing documents include many disclosures, in fact at the time of Application it is required that sample closing documents be provided to the borrowers. Additionally, all borrowers are required to go through third-party counseling by HUD approved counselors.

Fees are regulated and only HUD allowed fees are permitted with no mark-ups. Even though many times they are considered expensive or high the compare to conventional loans, in fact the difference comes down to FHA Mortgage Insurance Premium. You can see a comparison of the costs in my article, “Reverse Mortgage Costs – High or Mythical?”

In the last few years HUD and RESPA have implemented more regulations and protections. And recently HUD has been charging those who have not followed these regulations and even pulled their licensing.

Happy MN Reverse Mortgage Borrower

The reverse mortgage has been a life saver for many. According to an AARP report 93% of the borrowers are satisfied. Based on a survey of our borrowers our company has 100% satisfaction. I just talked with one borrower last week who told me the reverse mortgage has made a huge positive difference in her and the one her sister had made a big difference in her life also. (Her sister has now passed away.) One day we received a call from a man who said, “I want a reverse mortgage because since Jim got his, he’s a new man.” Some of my other Blog posts share other stories on how the reverse mortgage has made a difference in the lives of seniors: “Finance Retirement With A Reverse Mortgage,” “Know A Senior Who Wants Security, Independence, Dignity, and Control? A Reverse Mortgage May Be The Answer!” “Reverse Mortgages Finance Home Care,” and “Reverse Mortgages Answers Prayers.”

I’ve posted some Blog articles addressing the media’s attacks on reverse mortgages, “The Media Needs The Reverse Mortgage Facts,” “But Wait, There’s More… Reverse Mortgage Facts The Media Needs To Know,” and “It Is NOT Reverse Mortgage Fraud When…” It’s obvious the public needs these facts too when they make the statements that are in the opening paragraph.

When people make such irrational statements they don’t know what they are talking about. The reverse mortgage is not right for everyone but everyone has the right to get the details and facts so their decision can be based on the truth, not on opinion. As asked in my Blog, “When You Don’t Know What You Don’t Know About Reverse Mortgages,” would you go to a plumber for health problems? And to expand on that, would you go to a general practitioner if you have heart problems? No, you would go to the specialist. So before making or believing such irrational statements, contact a specialist and get the facts. Our website, www.RMSIDAC.com is full of information and facts and if you are in Minnesota we’d love to provide the facts for you via phone or in person.

Blog posts’ information is current as of date post published, program is subject to change in in the future. Contact us for current information, 651-762-9648.

This site or the information provided is not from, or approved by, HUD, FHA, or any US Government or Agency.

Reverse Mortgage Stories To Warm The Heart

Posted on January 3, 2010 by Beth Paterson, CRMP

Enjoying retirement with a Reverse Mortgage

As we look to staying warm during the winter season, I thought I’d share with you a few of the many client stories that have warmed my heart through the years showing where the reverse mortgage made a difference in the life of seniors.

There have been numerous situations where I have done a reverse mortgage and saved a senior’s home from foreclosure. One in particular had already gone through the sheriff sale. Working with an attorney we were able to help her buy the home back on the last day. We had to jump through many hoops to make it happen but the client was able to stay in her home of many years. She was so appreciative! It always warms my heart when we can help a senior stay in their home as they desire especially saving the home from foreclosure.

Helen really wanted to stay in her home basically no matter what. Her husband was in a nursing home and she was having some health issues so initially her family wanted her to move to senior housing. After talking with them and her social workers I tried to convince Helen to move. Then I received the call from her family saying Helen really wanted to stay in her home and they wanted me to do the reverse mortgage for her.

It was challenging from the standpoint that Helen had some early dementia and couldn’t remember things unless I wrote the answers to her questions under her question – even though the answers were written in my handouts and in my book, the only way Helen could connect the answer to the question was to have them written together. I remember spending a day, yes over 8 hours, with Helen to explain the details then another day to do the application and there were numerous phone calls and mailings in between. She had an attorney involved and had set up a power of attorney but Helen was independent enough to want to be involved through the process. During followup conversations with Helen I found that she did understand the reverse mortgage as a result of my taking so much time with her.

After many conversations with and then with the blessings of her family, social workers, and attorney we did the reverse mortgage for Helen. She was able to stay in her home until her death about 5 years later. Through the years I heard from her caregivers on how the reverse mortgage had made a difference for Helen. When she passed away the family called and asked me to attend her funeral because I had made such a difference in her life. Helen was one of the most challenging clients for me but it was a good feeling that I was able to help her fulfill her dream of staying in her home and that I had also made a difference for the family.

Lucy needed some extra funds to be able to stay in her home. She was cutting back on expenses like getting her hair done, cut off her cable TV service, just the little things that can give a person their dignity. When we did the reverse mortgage for her she was able to receive the services that returned her dignity. Lucy was a sweet independent woman that I always enjoyed talking with even after the loan was closed.

Fulfillling dream with a Reverse Mortgage

Fulfilling dream with a Reverse Mortgage

Carol had wanted to see a play in England that was going to end shortly after she had contacted me about doing a reverse mortgage. We closed her reverse mortgage and it was funded on a Wednesday. Thursday she was on a plane to London to fulfill her dream and see the last viewing of the play that Saturday. It gave me great pleasure to be able to help her fulfill her dream.

The reverse mortgage allowed Len to retire so he and Mary could live in their retirement home closer to their children. At the age of 70 Len was still working many hours and it was difficult for him. He and Mary owned two homes (one close to work and the 2nd close to their children) and was continuing to work in order to make the mortgage payments. Doing the reverse mortgage allowed Len to retire because by paying off their current mortgages the mortgage payments were eliminated. Len and Mary are enjoying their retirement living in the home closest to their children as their primary resident, keeping the 2nd home as their vacation home. I talk with them several times each year and they are so relieved and thankful for the reverse mortgage. Their family has also told me the difference I have made in their parent’s life. This situation too warms my heart because of the difference the reverse mortgage has made in their life.

These are just a few of the stories that have warmed my heart – each and every one of my hundreds of clients have touched me in one way. I feel blessed to be able to make a difference in the lives of seniors and help them stay in their home with security, independence, dignity and control.

Read some other articles with additional stories at: “ Reverse Mortgages Help Celebrate Independence;” “Reverse Mortgages Finance Home Care;” “Finance Retirement With A Reverse Mortgage;” “Reverse Mortgages Answers Prayers;” and “Know A Senior Who Wants Security, Independence, Dignity And Control? A Reverse Mortgage May Be the Answer!”

Blog posts’ information is current as of date post published, program is subject to change in in the future. Contact us for current information, 651-762-9648.

This site or the information provided is not from, or approved by, HUD, FHA, or any US Government or Agency.

Minnesota Reverse Mortgages SIDAC

Minnesota Reverse Mortgage Information, Facts and News from the Experts Excelling in Service

Tag Archives: Senior Stories

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Reverse Mortgage Stories To Warm The Heart