Reverse Mortgage Example
Here is a recent Reverse Mortgage Example Case:
Bill and Mary
Age: 74
Home Value: $165,000
Mortgage balance: 0
Back property taxes due: $8,475
Monthly Property Tax Payment: $315
This couple whose only real income is their Social Security benefit, is at risk of losing their home due to unpaid property taxes. An interested party has indicated their intention of buying up the tax lien, taking ownership, an either putting the house up for sale, or allowing the couple to stay there in exchange for a monthly rent payment of $750/ month.
Solution
Using an HECM (Reverse Mortgage) this couple was able to:
Pay off the tax lien: $8,475
Get a monthly cash flow of: $627.67
Pay the monthly tax payment: $315.00
Giving them a monthly net extra cash flow of: $312.67
Bill and Mary will never have to leave their home. They still own their own home. The loan will only come due when Bill and Mary BOTH die or BOTH leave their home permanently. Their heirs are not responsible for repaying the loan. When Bill and Mary BOTH die and the house is sold, their heirs will receive the proceeds from the sale of the home less the loan amount. The additional cash flow will ensure that Bill and Mary can afford their monthly tax payments, plus a little extra for other expenses.
To find out how a Reverse Mortgage can benefit you, Find a Reverse Mortgage Loan Officer in your area.
