Joan’s Real Estate Corner…

Seniors Only: Surviving the Economic Crisis with a Reverse Mortgage

In the midst of the current credit crunch, we tend to overlook the financial needs of senior homeowners, especially those who own their homes free and clear or are pretty close to being debt free. However, these homeowners often experience their own credit crisis – having loads of equity locked up in their homes and not being able to get at it. President Obama’s plan is not designed to bail them out, and many don’t qualify for refinancing to cash out some or all of their equity.

Fortunately, homeowners 62 years and older can often bail themselves out of financial trouble with a reverse mortgage. With a reverse mortgage, the homeowners have no monthly mortgage payment. Instead, the “lender” makes payments to the homeowner out of the equity in the home. The payment plan can be in any of the following forms: Read more