Helping Seniors Make Informed Financial Choices

Despite the downturn in the overall economy, reverse mortgages remain a safe and valuable tool for seniors even as home prices decline and energy costs rise.

For many seniors, news of the economic downturn  is part of their day-to-day reality.  They are having a hard time making ends meet and are facing choices that they never thought they would have to make, such as whether or not to remain in their homes.  Such was the case for Ray Collick and his wife from Baltimore, Maryland.

“Our home means so much to us and we did’nt want to sell it during a time when prices were so low but we felt trapped since bills were piling up,” said Mrs. Collick.  “When we heard about the reverse mortgage program, we decided to look into it so we could stay in our home and have the cash we needed to live comfortably.  So far, it has exceeded our expectations.”

According to Department of Housing and Urban Development (HUD) data, there are approximately 27 million senior homeowners nationwide.  Further, an AARP report indicates that 89% of older Americans want to stay in their residences for as long as possible.

“For most people, their home is their best financial asset,” stated David Peskin, CEO of Senior Lending Network.  “*Under the pressure of the current economy, all homeowners have seen their properties appraise at lower values and no one wants to sell their home at this point in the cycle when, over time, home prices historically increase in value.  Reverse mortgages allow the homeowner the flexibility to wait out this storm.”

 

A reverse mortgage is a product generally geared to people 62 and older.  It allows seniors to obtain cash by tapping their home equity while remaining in the comfort of their own home.

Tom Kelly, a nationally syndicated newspaper columnist and author of books regarding reverse mortgages and financial services, also commented, “In the current economic climate, reverse mortgages, most of which are non-recourse loans that are backed by the government, offer a ray of hope for seniors.  Not only might they be the best financial solution for the senior but emotionally they offer the opportunity to stay in their home and live a comfortable life without adding the uncertainties of moving.  This is a rare opportunity these days.”