How Reverse Mortgage Made My Life Better
My dearest Ben has passed away 7 years ago; Lucy and Peter have their own families and live on the west coast. Things were pretty good and I would be happy if only my pension could be bigger. Then all of a sudden things went bad. Peter’s wife Mary had ulcer and needed a costly surgery shortly afterwards he had an accident and spent much money on car repairs, plus his business was almost bankrupt.
I was eager to help my son and decided to sell my big house I do not really need any more to get money. However the real estate agent told me it can take months and time was of essence, so I could not wait for so long. However, that agent gave me an advice that changed my whole life.
He suggested me to issue a reverse mortgage with our bank. As you all know, mortgage is a practice of buying a house to live in and paying for it over the years, so reverse mortgage is just reverse. It is a procedure of gradually selling the house to the bank while still living in it, in common words. Simple, isn’t it?
After some thinking I thought – why not? Maybe Peter and Lucy would like to leave the house or to sell it after inheriting from me, but the situation has changed drastically, I need money and I do not need that house. That is why I contacted the bank and asked if I could issue a reverse mortgage.
Luckily, the bank agreed to sign a treaty with me. My house was estimated at $450 000 (I told you it is big, as Ben earned good money back in the days and we had separate rooms for kids, home gym, several guest rooms, several bathrooms, etc.). In addition Ben has arranged a great renovation of the house not long before he passed away, so I lived in quite a big, good as new but empty house and had to pay for 2 cleaners to keep it clean at least.
The first payment of $1500 I got in 2 weeks was enough to pay for Mary’s surgery, the second and the third helped Peter to pay his urgent debts and stay in business, so everything seems to be OK for him now. Then all of a sudden I ended up with an ongoing additional income of $1500 monthly. The whole sum is to be paid by growing portions till I perish (which I hope not to happen soon).
There are some expenses however, like margin and insurance, that is why the whole sum I will receive is lesser than the original cost of the house, but I think it is OK, as the company should have their profit too and I have enough money right now, which is the only important thing.
My life has changed completely as I do not have to count every dollar any more, and I am now able to have what I have always dreamed for. I had a fantastic tour around the Caribbean last year, the next year I am going to visit Europe or maybe the Holy Land. And you will not ever guess where I am right now – in Thailand! The people here are friendly and kind, there is such a plenty of ancient temples and relics, but the thing I personally liked most of all it the elephant painting. Yes, their elephants actually draw paintings and I bought a wonderful drawing of flying bird, which was created by the funniest big-eared grey artist by his trunk right in front of me. It was awesome!
All these possibilities I have thanks to the reverse mortgage program. It really is a solution for elder people who have no one to make a will for, or in case your inheritors do not really need the house you own. In this case you can freely issue that program to have quite a sum of additional income for your retirement. Give it a try!
