Michael Friedman/Reverse Mortgages

How can a reverse mortgage help older adults meet their retirement goals?

1. Avoid selling assets to maintain cash needs during a bear market.

2. Use funds to purchase a vacation property.

3. Receive tax-free proceeds to assist with daily living expenses.

4. Use the proceeds as an emergency line of credit.

5. Use the proceeds to fund long-term care services.

A reverse mortgage is a versatile financial planning tool/safety net that can help many older adults live more comfortably, provide flexibility, and better prepare them for the future.

What happens when we both die or go to a nursing home?
1. The house will be left to the estate and will be settled the same way as any other estate with a house.
2. It would be decided whether the house would be sold or purchased by a family member.
3. An appraised value will be determined, and the house will be sold for market value. At the time of the sale, if the sale price exceeds the mortgage balance, the difference will go into the estate.
4. The estate will NOT be responsible for any deficit. FHA will pay the lender the difference.
** The homeowner always retains title to the property. The property passes onto the heirs, estate, named person, etc. Not the Bank!!!