A Reverse Mortgage Can be Helpful when Seniors Seek a Divorce
Many couples who separate later(seniors 62 years of age or older) find themselves unable to support the costs of a home once supported by two partners now that they are independently responsible.
Here’s where a reverse mortgage can come into play…
The loan allows for the homeowner(s) to choose how to withdraw the equity in the home, whether as a lump sum, a series of ongoing payments or a combination.
If one spouse prefers to remain in the home but cannot meet the monthly mortgage payments, a reverse mortgage can be used to pay off the mortgage, with any remaining proceeds going to the moving spouse. If neither spouse wishes to remain in the home, a Reverse Mortgage Purchase loan allows a homeowner to purchase a new home while taking out a reverse mortgage in a single transaction.
In the same way a standard reverse mortgage can allow one spouse to move to a new home through the reverse mortgage while the other can assume some of the remaining cash proceeds. This might work particularly well in the case where the borrower is downsizing.
July 25th, 2017 by ATI Graphics, Inc.