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Last Updated: Jul 16th, 2008 - 15:09:44 |
(NAPSI)-Lucy Hull, a 68-year-old, wheelchair-bound widow living with her cat Freckles and her dog Bonnie in Overland Park, Kan., had to turn her porch lights off last Halloween because she couldn’t afford to buy candy for the neighborhood children.
Even though she had carefully planned for her retirement, mounting economic pressure was forcing her further and further behind in her bills and she had just received a foreclosure notice. “I was crying and trying to ignore the trick-or-treaters at the door,” Hull recalled. “I honestly didn’t know what to do next.”
Hull’s story is not uncommon.
According to the National Council on Aging, by the year 2030, retirees will be $45 billion short of the income needed to meet basic food, shelter and medical needs. New research shows that both foreclosures and bankruptcies are on the rise among senior citizens, making this an even more pressing concern for seniors and their families.
Unfortunately, many seniors in situations similar to Hull’s are simply unaware that there are compelling financing options available to them.
One alternative for seniors facing foreclosure is a reverse mortgage. A reverse mortgage is a federally insured mortgage product created in 1961 by the Federal Housing Administration that is designed to protect seniors by helping them to recapture the equity they have built up in their homes.
A reverse mortgage allows individuals 62 years old or older who own their homes and who have built up equity in it to secure up-front cash, ongoing monthly payouts or a combination of the two from a lender.
The only stipulation is that the owners remain in their home and that they maintain the property (including insurance, property taxes and critical repairs). No credit evaluation is required. A monthly payout from a reverse mortgage can substantially augment Social Security payments, and because a borrower will never owe more than the current market value of the home, it protects heirs from debt.
Fortunately, Hull’s story has a happy ending. She responded to a reverse mortgage advertisement from Golden Gateway Financial, a reputable resource for seniors. As part of the reverse mortgage package it found for Hull, the company first helped her negotiate a lower payoff amount for the impending foreclosure on her existing mortgage.
With the help of the loan advisers at Golden Gateway Financial, Hull now owns her home and is secure with a guaranteed monthly income as long as she lives in her house. “It gave me peace of mind,” she said. “I plan on staying here until I die.”
Seniors in need of cash or those simply looking to augment their current income should carefully research reverse mortgages before deciding on a lender. Sites like www.goldengateway.com are useful resources because tools such as their award-winning online calculator can help seniors assess their financial health and then privately compare, choose and get the right reverse mortgage for their unique situation.
For Hull, and for millions of other senior Americans with financial burdens, a reverse mortgage can provide financial security and peace of mind long into what should be the best years of their lives.
With a reverse mortgage, homeowners can turn the value of their homes into cash to help fund their retirement.
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