Reverse Mortgage
I feel that I have no choice but to get a reverse mortgage on my house. I am on the verge of filing for bankruptcy. (I unfortunately trusted the wrong people and lost a great deal of my retirement funds.) I have one mortgage broker who says that she can get me the reverse mortgage after I get a bankruptcy discharge. I am conviced that I want to stay in my home foreverse and do have some equity. I am only 65 years young but figure I could gain $500/month if I do this. I realize that I will have to pay the taxes and homeowners and flood insurances myself. (My house has flooded once already in the last 3 years...the property backs up to a river). I am kind of worried about paying the taxes and insurances, but the $500/month would really help me. I only get about $1600 in as and $9.00 in a part time job where I usually work 27 hours a week. What do you advise? Where should I save the money that I need to pay taxes and insurance? Thanks much.
Terry Says
OK, I think you need to take a step back. The fees and costs of setting up a Reverse Mortgage would be money down the drain if you find you cannot keep up with taxes and insurance. Would you take the time to contact the National Foundation for Credit Counseling at 800-388-2227. That will connect you to the nearest local member office. You can trust them. And the first meeting should be free. Let them go over your entire situation. I suspect you may be better off selling your house, and renting a small apartment in a senior complex. There may even be low income assistance programs for seniors in your state. The credit counselors will know about those alternatives. Please do that, and then write back and tell me what they say.
