Reverse Mortgages
Loneliness is an essential feature of the American experience and has been such at least since the days of the Beat Generation. One of the most obvious signs of this loneliness is that the only correspondence you get, whether in the form of email or postal mail, is from people who want to make money off of you. You have no friends from whom to receive birthday greetings, and your family cannot be bothered to wish you a happy birthday, but your hairstylist and dentist would never forget to acknowledge your special day. These days, now that no one has money to spend, friendly communications from parties in pursuit of financial gain often come from prospective lenders. No one cares about you, but everyone is willing to give you an unsecured loan; sometimes the amount for which the lender expects you to qualify is even printed on the envelope. If you are getting offers for reverse mortgages, you are in a better financial situation than most. If you are considering taking out a reverse mortgage, or if you have run into unexpected financial trouble after borrowing one, contact a Plantation debt lawyer.
How Much Debt Relief Can You Get From a Reverse Mortgage?
A reverse mortgage is a loan secured by the equity in your house; most people who qualify them own houses unencumbered by mortgages, and of those who have not paid off their original mortgages in full only have a small balance left. You receive the loan money as a lump sum, and it is easy to feel like you never have to pay it back; it is not due until the borrower sells the house or dies. Therefore, most people who qualify for reverse mortgages are above the age of 60.
By taking out a reverse mortgage, and using it to pay off other debts that are outstanding when you retire, you can have an almost debt-free retirement. By paying off your other debts, you can be sure that your estate will be able to repay the reverse mortgage without selling your house. Another reason that seniors borrow reverse mortgages is to help their children who are struggling with debt and for whom a personal loan of equal value would be much more expensive.
How Risky Are Reverse Mortgages Compared to Other Options?
If you are trying to choose between a reverse mortgage and a home equity line of credit (HELOC), consider that with a HELOC, you can borrow little by little and repay little by little; there is no big moment of reckoning during probate. If you are using the money to help your children repay debts, a reverse mortgage is less risky than withdrawing money early from your retirement account, because you are not taking away money that you have set aside for your own daily needs.
Work With a Debt Lawyer About Reverse Mortgages
A South Florida debt lawyer can help you decide whether a reverse mortgage is a good choice for you. Contact Nowack & Olson, PLLC in Plantation, Florida to discuss your case.
Source:
marketwatch.com/guides/home-equity/heloc-vs-reverse-mortgage/#:~:text=HELOCs%20are%20like%20a%20credit,the%20equity%20in%20your%20home.
