3 Reverse Mortgage Success Stories

A Reverse Mortgage Can Make Things Easier if You Get Sick

Rory was 64 years old when he was diagnosed with skin cancer. The doctors caught it in time and believed with treatment he would make a full recovery. Unfortunately, the treatment made Rory sick and he wasn't able to work full time. It also wasn't completely covered by his health insurance plan and very quickly he went through his savings and found he owed a lot to medical bills. At a time when Rory needed to rest and fight his disease, he was burdened with worries.

Rory took out a reverse mortgage on his home. He took a lump sum equity distribution, enough to pay in full the small mortgage balance he had remaining, which ended his monthly mortgage payments. He was also able to get enough to pay off the medical bills. These two steps improved his cash flow so that he could manage his expenses working part time. The reverse mortgage lender also provided a line of credit that could be accessed as necessary.

Rory made a full recovery in two years and returned to full time work. He was able to refinance his home and repay the reverse mortgage. The two years of relief that the reverse mortgage provided was helpful in saving Rory's life.

A Reverse Mortgage Allowed an Elderly Widow to Stay in Her Home

Jane lived in a home built by her father. She grew up in the home and was even married in the back yard. When her parents were gone, she and her husband raised their three children there. By the time her husband of 56 years passed away, she was far too rooted to consider moving.

Jane's children helped her find an ethical reverse mortgage lender who set her up with a tenure equity distribution. Tenure equity distributions provide a monthly cash amount for life. Jane was able to take care of her expenses without being a burden to her children who, at that time, had children of their own in college.

Jane lived eight more years in the comfort of her own home. When she died, the reverse mortgage lender sold her house as she had wished. After repaying the reverse mortgage, her heirs received the balance of the sale proceeds.

Using a Reverse Mortgage to Buy a Home

Marcia owned her home free and clear. She was retired and lived right down the street from her daughter. Her daughter and son-in-law depended on her every workday for child care. The children had never known another babysitter other than their grandma Marcia.

Marcia's son-in law was offered an excellent job in another state. She decided to sell her home and move to again be near her daughter and grandchildren. The proceeds she received when she sold her home were not enough to buy a new home near her daughter. She used a reverse mortgage to buy a home, so that she would continue to live without a monthly mortgage payment.

Reverse mortgages aren't for all people in all circumstances, but many, they can be the best solution to retirees' challenges.