QUESTIONS?

CALL US: 703-319-2198


Creating Constructive Options for the Division of Property for Retirees

Creating Constructive Options for the Division of Property for Retirees

The words retired, fixed income, and divorce don’t always go that well together. Many retirees live primarily on Social Security and a small amount of investment income.  A divorce, no matter how amicable, will often require the division of property.  It is not uncommon for people to feel pressured to sell the home, due to current mortgage balances that are unaffordable, with a separation of income during a divorce.  In other instances, couples will attempt to leverage up with inexpensive home equity lines of credit as a means of dividing the property.  Both of these options create potentially unsuitable risk for the individuals, especially if they are retirees and on fixed income. 

The sale of the property is expensive and it leaves both individuals with the requirement of seeking a residence on their individual fixed income.  Secondly, the buyout option will leave the individual that resides in the home with variable debt that requires a monthly payment.  The residual fixed income that remains after separation may not be enough to handle this strategy intermediate to longer term and this creates risk.  Retirement is often not the phase in life were we are generously rewarded for taking such risk.

A more constructive option would be to use a Reverse Mortgage as the mechanism to create the liquidity needed to divide the property home equity.   The Reverse Mortgage does not require a monthly mortgage payment so there is not additional pressure on either individuals fixed income.  A couple seeking a constructive means of division of property can divide the property with relative ease and minimal risk.  A Reverse will also eliminate any existing mortgages requiring payments on a property thereby making any negotiations related to property division that much more palatable. A Reverse Mortgage can be used for eligible homeowners to create a low risk pool of liquidity so they can better and more safely meet their objectives when faced with division of property options.

 

George H. Omilan
President-CEO - NMLS# 873983
Jefferson Mortgage Group LLC
Located in Fairfax County - Your Reverse Mortgage Specialist in Virginia, Maryland, DC and Pennsylvania.  

Questions/Comments encouraged. 

Comments

Error:
Please enter this text

Comment Submitted!

Recent Posts

Blog Tags

Reverse Mortgage Retirement Planning Annuity Traditional Mortgage Fiscal Cliff Medicare Short Sales Debt Mitigation supplemental retirement income Reverse to Purchase Mortgage Retirement income insecurity forgiven mortgage debt mortgage debt forgiveness act solutions for underwater properties home equity access HECM Reverse Mortgage Government insured mortgage lifetime income with a Reverse Loan modification modify your loan with your lender Home Care foreclosure Mortgage Loan Process FHA HUD Construction Loan Hard Money Loan mortgage debt relief act FINRA HECM to Purchase HECM for Purchase Long Term Care Rentership Real Estate Economy Financial Assessments Mortgage Deliquency Seniors Social Security Sandwich Generation Financial Planning private label reverse mortgage growth factor reverse credit line LESA Retirement security assisted living Eligibility for Reverse Mortgage Estate Plan Age in Place downsizing Trump Treasury occupancy requirements Senior Advocate mortgage debt Senior Care Gray Divorce Jumbo Reverse Mortgage Principal Limit Factor Non-recourse loan investor financing No Doc Investor Loans Specialized Forward Mortgages Jefferson Mortgage Group Non QM bankruptcy QM Commercial Real Estate Investor Loans Real Estate Investment Loans self-employed borrower bank statement loan Jumbo Mortgage Loan MIP HECM Changes mortgage Asset Qualifer Asset Based Mortgage VA Low Score VA LOAN manual underwrite Unrestricted Approval success story 2021 Changes Inflation cashflow Blanket Loan Reverse Mortgage Eligibility 55+ Fed Interest Rates Housing Market Housing Prices Mortgage Rates Real Estate Market Diversification Prequalification 2023 changes Lending Limit increase High-Value Homes Business Cash-flow ATR Rule Seller Contribution Low Credit Score Credit Score down to 500 Non-Qualifying Loan DSCR Debt Property-based loan LLC Jumbo Reverse Second Trust Second Trust Second Trust