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What most recipients of a Reverse Mortgage receive.

July 10, 2009

In a 2006 National Survey of Reverse Mortgage Shoppers, borrowers provided the following information:
Reverse mortgage recipients were asked, “Overall, would you say that the reverse mortgage has had mostly a positive impact on your life or mostly a negative impact?”

  • 94% stated the reverse mortgage had given them peace of mind
  • 89% said it helped them have a more comfortable lifestyle
  • 87% responded it improved their quality of life
  • 79% gave it credit for helping them remain at home

The respondents to the national survey are similar to the clients I meet daily. My clients share their stories so I can realize the positive impact it makes in their life.

One of the couples I met were Alice and Jim who had been living in a house in Pinellas Park, their home had no mortgage and they had no debt. In January of 2006, they decided to sell their home and move into a senior condominium community. They purchased the condo with cash and immediately moved in, anticipating a quick sale of their house. In February they had a contract on their house, three days before the closing, the buyer died. They had no other offers. They found themselves strapped with property taxes on the house and the condo, maintenance fees on both and rising insurance costs.

Alice and Jim used their credit cards to pay their mounting bills, anticipating that the house would sell and they could pay off the cards. The value of the home fell, they still owned both properties. They continuously lowered the price of the house but finally accepted an offer to rent.

Alice and Jim had no means of paying off the credit card debt. Each month they had a cash shortage. The Realtor who listed their house recommended refinancing the house and/or condo, she referred them me. After a full analysis of their situation, it was obvious that a Reverse Mortgage was their best option. The reverse mortgage gave them all the money they needed to pay off their debts and an equity account for ongoing expenses. The real estate market is no  longer getting them down. Alice and Jim both told me they now have peace of mind. Even though they did not officially participate in the national survey, they validate what the results of that survey showed. I don’t know of any other financial product that has as many satisfied participants. That’s what I like most about my job.

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