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How to spot a Reverse Mortgage Candidate

We are all aware that the low interest rate environment has had devastating effects on seniors and retirees in general for many years. This is not something new but the recent trends, in conjunction with the devastation many retirees experienced with their investments, have compounded the problem. Seniors and retirees have not only been at a disadvantage supplementing income, they have also experienced loss of principle with no economical means of recovery.

The story link below is an example of a typical senior that always put his family first only to find himself in an end of life financial struggle. He helped his children through college as every parent would want to do and he made sure his elderly parents were taken care of.  Although our society is grounded by the strength of the family structure and the responsibility it entails, it takes a plan to avoid such a predicament.

I would like to point out a few positives related to the article link and propose a solution.

Flipping burgers for a living, at age 77
I admire the fact that his man, in spite of his financial predicament at 77, does not see flipping burgers as a hardship. Rather, he sees this as a job and an opportunity. Many of our seniors have this ethic and they are not scared of work or sacrifice. I think that we would all agree that flipping burgers and enjoying the social aspects of a job in retirement is one thing, but having to flip burgers to survive is another. Alternatives to this situation would be ideal.

The article noted that he owns a small home in Florida free and clear. He probably does not know that he is eligible for a government insured HECM Reverse Mortgage. The $1800 per month from Social Security could be supplemented with an annuity like payment of $1178 per month from a Reverse with an estimated house value of $300,000. He could continue to work voluntarily, but he could also enjoy life and not have to struggle financially. If he is aware of a Reverse Mortgage he probably has no understanding of how it can be applied to his situation. It has probably been ruled out for fear that he will lose his home to the Reverse Mortgage. 

Low interest rates on savings have been adversely affecting seniors since the mid nineties. As you travel through life, whether in your car at a stop light, or in the grocery store you will see retired people. Many of them are in the same situation financially as the gentleman in this article. They are reliant on their families and social security for the most part. They don’t want you to know because they are proud, but rest assured, many of them have hit rock bottom. The mortgage crisis and the stock market plunge devastated them.  

I wish I could say everyone outsmarted the markets and had a plan to step out of the way of the freight train but that would be misleading. Everybody got run over by the train. Those that were still working and had the fortitude to stay the course survived but those that were retired may not have done so well. A Reverse Mortgage may be a lifeline for some or a terrific addition to a diversified retirement plan for others. Regardless, many retirees are searching for some form of stability. Inquiring about a Reverse Mortgage often is enlightening.  

Spotting someone that may benefit from a Reverse Mortgage just got a lot easier. My job is to take away the fear and replace it with understanding. If you know someone, a family member, friend, client, or associate, that you think could benefit from learning about a Reverse Mortgage, I would like to hear from you.

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