- Andrew's Story
- Reverse Mortgage Pre-Foreclosure
- Reverse For Purchase
- Reverse to Stop Monthly Payments
- Retired Nurse in Payson
ANDREW DOES NOT REGRET TAKING OUT THE REVERSE MORTGAGE LINE OF CREDIT. “IT’S MY ACE IN THE HOLE,” HE SAYS, “IF SOMETHING HAPPENS TO ME.”
Andrew, an 84-year old World War II naval veteran and retired shipping bag salesman, makes his home in the valley of the sun, Phoenix, Arizona.
The sports fan goes to watch the Diamondbacks play a few times each summer and to Cardinals games during the fall and winter, and often makes it to downtown Phoenix to catch the Suns. He enjoys area museums, the desert, and going on excursions.
He has a wonderful time, except for one thing. Sadly, he must enjoy Phoenix area and all its nearby attractions without his wife.
Barbara had suffered bouts of multiple sclerosis several times during her life, and often had to take prednisone and other steroids from which she suffered ill effects. The MS and the medications combined to cause urinary and heart problems. She was in a fragile state; such that it was decided that it was in her best interests to place her in a nursing home. Andrew was at a loss, however, as to how to do so. They lived comfortably on their monthly income, but as Andrew says, “a good nursing home could cost six or seven thousand dollars a month.” He wanted his wife to be in the best nursing home available. They didn’t have six or seven thousand dollars a month, however.
The plan for a solution came from couple hundred miles away in southern Arizona, where Andrew’s cousin had just taken out a reverse mortgage on his home. “So, I figured if it was good enough for him, it was good enough for us.
Andrew wasn’t as excited about the counseling part of the process. Engagingly outspoken, he said, “It’s a good idea, but a waste of money. I don’t need some [counselor] asking me if I knew what I was doing….” He does agree that it is necessary for many borrowers, and that it is important that people know what they’re getting into. The couples’ home was appraised for $225,000 and they were eligible for $167,000, all of which is accessed in a line of credit.
Although the reverse mortgage was the answer to Andrew's dilemma, Barbara sadly passed away from urinary complications and congestive heart failure before they found a suitable nursing care facility. Andrew does not regret taking out the reverse mortgage line of credit, however. “It’s my ace in the hole,” he says, “if something happens to me.” He said he also may take more trips, possibly even a train trip around the whole United States. “You have a bedroom on the train, and you can travel around the country. You can’t beat that.”
Despite the sadness of Barbara's passing, her widower now has a source of security and possible enjoyment as he continues to live in their beautiful Phoenix home.
One of the First Reverse mortgages that I processed and funded was in 1999 – I had received a phone call from a friend that needed me to call his minister and his wife. My friend told me that the minister had been with a small church in the Phoenix area and that the church had closed down and left the aging minister without a pastoral job.
I called pastor Ed and made an appointment to visit with him and his wife - Pastor Ed and his wife Judy had a beautiful home and I was told that they had been unable to continue to make the monthly payments and were in danger of having the home which they had lived in for over 17 years be foreclosed on. The only income was Social Security for both and a small pension for Judy. Both Pastor Ed and Judy had difficulty with expenses as the house payment was taking almost 65% of their income.
We are able to process and fund the Reverse Mortgage Loan within the next 45 days, Now Pastor Ed and Judy were able to keep their home they lived in for many years, and only had to pay their home owners Insurance and Property taxes to keep the home which they felt safe and secure.
This loan for them was truly a blessing that they had not expected.
A retired couple in Sun City Arizona had a large 2 story home but developed health problems after several years- The stairs had become very difficult to climb to use their upstairs bedroom - they were forced to sleep in a small guest bedroom downstairs – they decided to sell their home and purchase another home in Sun City – they sold their home and rented the home back for 60 days during that time, and they used the proceeds to purchase a smaller home with a guest casita using the Reverse HECM Mortgage. The new home was within 1 mile of their prior home and made them happy to be living in the same community.
The Real Estate agent that sold their home was surprised with the ease which the transaction took place - The title company even opened the their office on a Friday during a long Thanksgiving weekend to make sure all parties were able to sign the Reverse Mortgage Loan documents. The couple were able to maintain their community friendships and even shop at the same stores.
A retired gentleman living in East Mesa, Arizona had been recently divorced and was now faced with having a mortgage and not having his wife’s social security income and her pension to support the household expenses. He was living on his Soc security, small pension, and income from a small shoe repair business in Mesa. We were able to provide the Reverse Mortgage for Charles.
At the closing I had arranged for the mobile signer to meet at Charles shoe repair shop for signing of loan doc’s. I walked in and we waited for the mobile signer to show up – while sitting there Charles looks down at my shoes and said it looks like I could use some new heals, Charles askes for my shoes and his son who helps in the shop took my shoes and starts putting new heals on the shoes.
The mobile signer now shows up and we start the signing process when the mobile signed sees me with no shoes on – we explain that Charles is fixing my shoes, and then Charles notices the Mobile signer’s shoes that are scuffed up and said that they could buff the marks out. Now the mobile signer turns his shoes over to Charles and we both are sitting at the table in the lobby of his shoe repair store shoeless – while signing loan doc’s - That was over ten years ago and when I now speak with Charles we laugh about the our shoeless mortgage signing - At Least I had no holes in my socks ! – Now Charles only had Taxes and Home Owners Ins to pay.