Reverse mortgage is an underused tool for elders

[ruready]

When we were shopping for an assisted living facility for my mother this year we kept hearing from the facility marketing people who explained they weren't at full occupancy because the new customers couldn't sell their homes. The same issue was raised in the http://www.nytimes.com/2008/11/22/us/22home.htmlNY Times. A lot of people can't sell their homes, so they don't have enough money to pay entrance fees or monthly carrying charges. A real problem for many, but we are always surprised at how no one ever mentions a reverse mortgage as a tool to get around that. Although your financial adviser or banker could explain in more detail, the idea is that the bank will give you monthly installments on the value of your house, plus interest. At least you would have enough for monthly carrying charges. In the end, unless you pay it back, the bank will own your house. What i wonder about is if the bank will give you payments in larger increments than monthly. Anybody know?

[myturnnow]

There's an interesting Wall Street Journal article about funding a move to a retirement community in these tough times. It also has some basic background about using the option of a reverse mortgage.
http://online.wsj.com/article/SB123117048595753979.html

[JudithScott]

This is a great and helpful post link for seniors people.

[kgbkind]

Do you know a senior who’s been stranded at home by the housing crisis? Thousands of seniors are now unable to sell their homes and move into assisted living facilities to get the care they need. According to The New York Times, some seniors who have put their homes on the market as long as a year ago have received no offers. The recession has made it impossible for such seniors to move out or afford the payment of $100,000 to $500,000 deposit required by many retirement communities.

In-home senior care ensures seniors can live safely at home as long as they need to—or want to. Struggling home sales are no reason to endanger seniors who are struggling to perform daily activities alone at home. An in-home caregiver is the perfect solution—whether seniors are waiting (but unable) to move into an assisted living setting, or they would prefer to stay at home. (89 percent of seniors say they would rather stay at home than move into a facility.)

An ultimate and irreversible decision, selling one’s home is a tough sacrifice for seniors to make just to pay for their care. Many seniors fear the “one-way ticket” nature of moving into assisted living—with no “home” to go back to. A reverse mortgage is an option that can enable a senior to stay in his or her own home while the home’s equity covers the cost of a personal caregiver. US Veterans or their surviving spouses may also be eligible for the VA home care benefit from the Veteran’s Administration of up to $1,949 per month. (For more information about reverse mortgages or the VA home care benefit, contact your local Home Care Assistance and they can direct you to organizations who can help.)

Home care actually makes a more conservative option. There’s no long-term commitment. It’s flexible, too, with live-in and hourly service adjustable as needs change. An in-home caregiver is the perfect solution—whether seniors are waiting (but unable) to move into an assisted living setting, or they would prefer to live at home. (89 percent of seniors say they would rather stay at home than move into a facility.) An ultimate and irreversible decision, selling their home is a tough sacrifice for seniors to make just to pay for their care. Many seniors fear the “one-way ticket” nature of moving into assisted living—with no “home” to go back to.

A reverse mortgage is an option that can enable a senior to stay in his or her own home while the home’s equity covers the cost of a personal caregiver. US Veterans or their surviving spouses may also be eligible for the VA home care benefit from the Veteran’s Administration of up to $1,949 per month. (For more information about reverse mortgages or the VA home care benefit, contact your local Home Care Assistance and they can direct you to organizations who can help.)

Author: Larry Levine
Home Care Assistance
http://www.homecareassistance.com