As of October 1st, 2009, FHA will begin limiting the benefit amounts for Seniors obtaining reverse mortgages. Overall, the benefit amount will be 10% less after October 1st vs. prior to October 1st.
In a world where home values have dropped, assets have diminished, the COLA for SS is 0% and healthcare is continually becoming more expensive...this is not good news.
Some recent good news though - the loan limit for Reverse Mortgages might stick at $625,500 for the time being...so while it won't change the principal limits available to homeowners, it will at least let them base their benefit off of a higher amount.
9/30/2009
Senior Education Events in October and November
The Senior Education Network is holding a series of events in October and November at the Southampton Free Library in Southampton, PA. Additionally, events are forming at the
Visit www.SeniorEdNet.com and click on “Upcoming Events” for full details including upcoming events calendar.
Topics for the
· Social Security / Medicare
· Senior Housing Options
· Staying Fit and Healthy over 65
· Long Term Care Insurance Basics
· Reverse Mortgages
· Practical Estate Planning / Medicate Laws
· Home Health and Medicare Eligibility
· Understanding Hospice Care
· An Overview of Long Term Care
The Senior Education network is a volunteer organization – these are not sales presentations.
9/18/2009
Seniors Saved from Foreclosure - Reverse Mortgages Save the Day
Many of the foreclosures we are seeing are falling into two categories:
1) Seniors
2) Single Female Parents
Reverse Mortgages CAN BE USED to save seniors from foreclosure.
Saving a homeowner from foreclosure with a reverse mortgage is a success story we should all look to create. Who do you know that needs help today? Introduce them to this web log - or please feel free to contact me with questions.
Thank you - and have a great weekend!
1) Seniors
2) Single Female Parents
Reverse Mortgages CAN BE USED to save seniors from foreclosure.
- Criteria for reverse mortgages include age and property value.
- Criteria not factored is credit rating, employment, assets or ability to repay the loan.
Saving a homeowner from foreclosure with a reverse mortgage is a success story we should all look to create. Who do you know that needs help today? Introduce them to this web log - or please feel free to contact me with questions.
Thank you - and have a great weekend!
Retirement Benefits - Free Information from Social Security
THURSDAY SEPTEMPER 24th, 2009 from 6pm to 7pm
At the Friends Home and Village, 331 Lower Dolington Road, Newtown, PA
Please R.S.V.P. to: Friends Home and Village (215) 968-9222
Social Security Benefits in 2010
Presented by Karen Risch, Field Representative - SS Office
Reverse Mortgages: A Key to Retirement Planning
Presented by Ben D. Stucker, CSA
At the Friends Home and Village, 331 Lower Dolington Road, Newtown, PA
Please R.S.V.P. to: Friends Home and Village (215) 968-9222
Social Security Benefits in 2010
Presented by Karen Risch, Field Representative - SS Office
Reverse Mortgages: A Key to Retirement Planning
Presented by Ben D. Stucker, CSA
8/19/2009
Educational Event - Social Security Benefits / Reverse Mortgages in Bucks County, PA
Join us for the first of a series of free information sessions FOR THE PUBLIC.
Social Security Benefits for 2009
Presented by Karen Risch, Field Representative
Reverse Mortgages in 2009
Presented by Ben D. Stucker, Director, Village Capital and Investment LLC
THURSDAY SEPTEMPER 24th, 2009 from 6pm to 7pm
At the Friends Home and Village, 331 Lower Dolington Road, Newtown, PA
Please R.S.V.P. to: Friends Home and Village (215) 968-9222
DOOR PRIZES too!
8/12/2009
AARP Bulletin - Making Your House Work For You
AARP wrote about Reverse Mortgages in early 2008. Although AARP states that they do not support any specific lender or bank when it comes to reverse mortgages, it certainly seems as though AARP recognizes the positive side of this mortgage product.
http://bulletin.aarp.org/yourmoney/personalfinance/articles/making_your_house.html
One of the quotes from the article: "My father had had a stroke and did not want to go to a nursing home," explains an Asbury Park, N.J., resident who acted on behalf of his parents, both of whom are in their 70s. "We looked at every other option to allow them to stay in their house. The reverse mortgage was a lifesaver."
One note to add to this: People love to say that "Reverse Mortgages are expensive". I typically respond with "Compared to what?". Let's think about this....if you compare a reverse mortgage to a forward mortgage, you have to understand that they are not the same. One loan you make payments, the other you don't. One you must qualify for based on credit, income and employment while the other is just age! After these facts are presented suddenly a reverse is much more of a benefit than a cost!
http://bulletin.aarp.org/yourmoney/personalfinance/articles/making_your_house.html
One of the quotes from the article: "My father had had a stroke and did not want to go to a nursing home," explains an Asbury Park, N.J., resident who acted on behalf of his parents, both of whom are in their 70s. "We looked at every other option to allow them to stay in their house. The reverse mortgage was a lifesaver."
One note to add to this: People love to say that "Reverse Mortgages are expensive". I typically respond with "Compared to what?". Let's think about this....if you compare a reverse mortgage to a forward mortgage, you have to understand that they are not the same. One loan you make payments, the other you don't. One you must qualify for based on credit, income and employment while the other is just age! After these facts are presented suddenly a reverse is much more of a benefit than a cost!
Myths: Reverse Mortgages in Bucks County, PA
Misconceptions abound when it comes to Reverse Mortgages. Although understanding is increasing quickly amongst eligible seniors, there are over 10,000 people turning 62 each day that will need to get "caught up" on knowledge.
Myths:
1) The bank will take my house. With a reverse mortgage the borrower(s) retain title to the home similar to a forward mortgage. The borrower(s) can never be force out of their home as long as the property taxes, insurance are paid and the home is maintained to basic health and safety guidelines as defined by HUD.
2) The home must be owned free and clear. As long as the proceeds from a reverse mortgage cover any existing liens on the home (including 1st and 2nd mortgages, tax liens, and judgements), the candidate will qualify. According to a recent AARP and HUD co-sponsored study in 2008, approximately 50% of reverse mortgage borrowers used a reverse mortgage to pay off their existing mortgages and free up monthly cash flow.
3) The bank will sell my home when the loan becomes due. The borrower is always in control of the home and retains title (not the bank or the lender). It is most common for a family to sell the home because the adult children and families tend to be settled elsewhere - however, this is in no way a requirement. Many seniors plan for their estates to satisfy the reverse mortgage balance in the event that the children will be retaining the home while others PLAN for the home to cover the proceeds from the start.
4) It is cheaper to move to a smaller house. This strategy might be right for some, however, when factoring in real estate commissions, new closing costs and the cost of moving etc, it might not make as much sense as it initially appears. Individuals interested in downsizing, should speak with a realtor AND a mortgage professional about the options available to them and what the total costs would be prior to making a decision.
5) Children want the home and are not comfortable with a reverse mortgage. I encourage every senior to seek the advice of a PROPERLY EDUCATED or LICENSED individual. Due to the common misconceptions on the product, the "knee-jerk" reaction can be misplaced and misunderstood. I can speak for myself and many other adult children when I say "My mother and father DESERVE to live in their home and DESERVE to use it for all it is worth".
6) The borrower will owe more than the home is worth. Two of the great safeguards for reverse mortgage are that they are structured so that the borrower or his estate can never owe more than the value of the home upon repayment. In addition, HECM products are insured bu the FHA, an arm of the US Department of Housing and Urban Development.
7) Reverse Mortgage proceeds will impact Social Security and Medicare benefits. A reverse mortgage will not impact Social Security Retirement benefits or Medicare. They can impact some Federal Supplemental Security Income (SSI) or state-administered programs like Medicaid. I recommend that anyone looking in to a reverse with further questions on this contact the appropriate governmental agencies.
8) These are restrictions on how the money is used. Actually, there are no restrictions. The cash proceeds from the reverse mortgage can be used for any purpose. Paying off debts, paying medical expenses, helping their children and traveling are just some of the way proceeds can be spent.
9) Once the proceeds are received, taxes will need to be paid. Proceeds from a reverse mortgage are already your money...they are just in the form of equity. Since they are not income, you do not need to pay taxes on them. I suggest you contact a financial planner just to be certain.
10) Reverse Mortgages are only for seniors in need, or for the 'house rich & cash poor'. The reverse mortgage is an excellent financial planning tool when understood. I personally have closed reverse mortgages on homes as small as $90,000 to estates as large as $4,000,000. Using a reverse mortgage for estate planning and legacy planning in conjunction with advice from a financial planner can be a great strategy to increase overall estate value.
Myths:
1) The bank will take my house. With a reverse mortgage the borrower(s) retain title to the home similar to a forward mortgage. The borrower(s) can never be force out of their home as long as the property taxes, insurance are paid and the home is maintained to basic health and safety guidelines as defined by HUD.
2) The home must be owned free and clear. As long as the proceeds from a reverse mortgage cover any existing liens on the home (including 1st and 2nd mortgages, tax liens, and judgements), the candidate will qualify. According to a recent AARP and HUD co-sponsored study in 2008, approximately 50% of reverse mortgage borrowers used a reverse mortgage to pay off their existing mortgages and free up monthly cash flow.
3) The bank will sell my home when the loan becomes due. The borrower is always in control of the home and retains title (not the bank or the lender). It is most common for a family to sell the home because the adult children and families tend to be settled elsewhere - however, this is in no way a requirement. Many seniors plan for their estates to satisfy the reverse mortgage balance in the event that the children will be retaining the home while others PLAN for the home to cover the proceeds from the start.
4) It is cheaper to move to a smaller house. This strategy might be right for some, however, when factoring in real estate commissions, new closing costs and the cost of moving etc, it might not make as much sense as it initially appears. Individuals interested in downsizing, should speak with a realtor AND a mortgage professional about the options available to them and what the total costs would be prior to making a decision.
5) Children want the home and are not comfortable with a reverse mortgage. I encourage every senior to seek the advice of a PROPERLY EDUCATED or LICENSED individual. Due to the common misconceptions on the product, the "knee-jerk" reaction can be misplaced and misunderstood. I can speak for myself and many other adult children when I say "My mother and father DESERVE to live in their home and DESERVE to use it for all it is worth".
6) The borrower will owe more than the home is worth. Two of the great safeguards for reverse mortgage are that they are structured so that the borrower or his estate can never owe more than the value of the home upon repayment. In addition, HECM products are insured bu the FHA, an arm of the US Department of Housing and Urban Development.
7) Reverse Mortgage proceeds will impact Social Security and Medicare benefits. A reverse mortgage will not impact Social Security Retirement benefits or Medicare. They can impact some Federal Supplemental Security Income (SSI) or state-administered programs like Medicaid. I recommend that anyone looking in to a reverse with further questions on this contact the appropriate governmental agencies.
8) These are restrictions on how the money is used. Actually, there are no restrictions. The cash proceeds from the reverse mortgage can be used for any purpose. Paying off debts, paying medical expenses, helping their children and traveling are just some of the way proceeds can be spent.
9) Once the proceeds are received, taxes will need to be paid. Proceeds from a reverse mortgage are already your money...they are just in the form of equity. Since they are not income, you do not need to pay taxes on them. I suggest you contact a financial planner just to be certain.
10) Reverse Mortgages are only for seniors in need, or for the 'house rich & cash poor'. The reverse mortgage is an excellent financial planning tool when understood. I personally have closed reverse mortgages on homes as small as $90,000 to estates as large as $4,000,000. Using a reverse mortgage for estate planning and legacy planning in conjunction with advice from a financial planner can be a great strategy to increase overall estate value.
8/10/2009
Reverse Mortgages to pay Medicare Hospital Deductibles
If you know of a Senior who cannot obtain a MediGap policy to cover some of the super high Medicare deductibles or other coverage to help with prescriptions - it might make sense for them to consider a reverse mortgage.
Reverse mortgages can come in a fixed rate format (currently 5.56%). They can be predictable and safe - but knowledge is the key.
Learn, then decide - you will be shocked by the amount of false information going around.
Reverse mortgages can come in a fixed rate format (currently 5.56%). They can be predictable and safe - but knowledge is the key.
Learn, then decide - you will be shocked by the amount of false information going around.
8/09/2009
Seniors Comfortable on the Web
http://www.healthcareitnews.com/news/survey-finds-seniors-satisfied-using-internet-manage-health
When speaking about those surveyed (all of which were over 65).....
"The biggest surprise from the survey was discovering that the typical Kaiser Permanente Medicare beneficiary who is registered to use My Health Manager is very comfortable with computers, using the Internet daily and reviewing their medical record online a few times each month,"
When speaking about those surveyed (all of which were over 65).....
"The biggest surprise from the survey was discovering that the typical Kaiser Permanente Medicare beneficiary who is registered to use My Health Manager is very comfortable with computers, using the Internet daily and reviewing their medical record online a few times each month,"
8/07/2009
Useful Eldercare Blog
Home Care, Elder Care and other related issues are covered in this Blog: http://jmoskovitz.wordpress.com/
Subscribe to:
Posts (Atom)
Posts
