A real life reverse mortgage

Brenda, age 65, was absolutely sick of working. She had toyed with the idea of quitting for years, but decided she simply could not afford to live off social security and her small retirement account. The IRA and savings would be drained in less than a year without income. She was a secretary for an oil drilling company executive. Her boss was not a terrible boss, as bosses go. But he was certainly a boss, and Brenda wanted to be free of someone to answer to in her golden years.While preparing her 2005 tax returns, Brenda’s C.P.A. told her about reverse mortgages – what they can do and what they cannot do. He told her it was a loan against her house. She could get a sum of money - $77,000 it later turned out – and not have to pay it back until she died or permanently moved out of the house. She questioned this, thinking that she couldn’t possibly pay off a loan after she was dead. Then she thought her daughter would need to pay back the loan. She immediately decided no, until her CPA further told her that the bank would sell her house at her death, and that would satisfy the loan. Brenda sat down and had a frank discussion with her daughter. Her daughter said that she did not want her house. The house would be sold anyway. Her daughter did say that she would be more than happy to have any cash that was left in the estate. Brenda felt encouraged by her daughter’s reassurance that a reverse mortgage, if it would improve Brenda’s life from here on out, was the right thing to do. Brenda went to the Internet for more information. She came across the reverse mortgage page. She liked the information contained, as well as the no obligation ability to speak with a reverse mortgage lender. She filled out her name, address, and house values. She spoke with two lenders, each of whom answered her questions about reverse mortgages. She got the reverse mortgage counseling she needed, and decided a reverse mortgage was certainly for her.She did all the necessary paperwork, her house was appraised (for about 10 more than she thought it would be), and she was funded by a top reverse mortgage lender. She decided on a HECM reverse mortgage. Brenda got slightly more than $77,000 tax free. It turned out that Brenda did not quit her job. When she announced to her boss she was going to quit, he asked her to stay on three days a week and raised her hourly wage. She was ecstatic.Brenda is a big believer in reverse mortgages. She told a number of her friends about the reverse mortgage page and, for that, we are grateful.

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