Sierra Reverse Mortgage

From Allaire Elder Law

In the world of elder law and Medicaid planning, there is another reason to use a reverse mortgage. If there is no other way to protect the house, then a reverse mortgage is an option to allow the value of the property to do some good. The typical situation is a single homeowner who wants to remain in their property, but needs long term care they cannot afford. This person goes onto Medicaid, which will then pay for their home care. The reverse mortgage money is available to help pay for the expenses of the home, or additional caregivers. But that money

does not need to be spent down before qualifying for Medicaid! As long as money from the reverse mortgage is never mixed with money from anywhere else, such as income, then it does not count towards the asset limit, which is typically $1,600. If the person on Medicaid cannot pay all their living costs on just their income, this is a way to have some savings as well. That way the home owner does not have to go live in a nursing home for purely financial reasons.

The benefit to the reverse mortgage is therefore that there are no monthly payments, ever. It is a great way to be able to use the value of the home in order to afford to stay there, if there is no other way to afford it. Of course, if you outlive the money the bank lends then there is

no way to afford to live there, and the house really must be sold. For this reason it does not make sense for younger people to take these out. At least not if the point is to be able to pay for the bills of the home. If you can’t afford the place, downsize. But if you are older, and having just a little extra cash will allow you to live the rest of your days in your own home, then it makes sense.

As inflation and rates are going up, retirement or rather how to afford retirement is becoming a popular topic.
This article gives a very brief overview of some options. A Reverse Mortgage is becoming more mainstream. It touches some pros and cons. Keep in mind that the responsibility of the homeowner would be
1) Live in the property as their primary residence
2) Pay the property taxes
3) Pay your homeowners insurance
4) Send back your occupancy letter once a year.

If you do those things, you will never be asked to leave your home for as long as you live

To find out your options, please call 530-677-5484.

Retirement Income Planning Ideas for 2022 | ThinkAdvisor From emergency savings to annuities to tontines, there are plenty of tools for creating an income stream that lasts.

Forbes’s just came out with an article on options for retirees who are cash strapped as inflation is skyrocketing.

A reverse mortgage is the top option for people who do not want to move.

Call to see what a reverse mortgage can do for you.

530-677-5484

Inflation, Stock Market May Cause Retirees To Reconsider Using Their Home Equity Cash-squeezed seniors and retirees may need to explore creative ways to make ends meet.

This is a good article addressing some of the changes that have happened to reverse mortgages over the past decade. The article also goes over some of the pros and cons of reverse mortgages.
As the economy is eating away retirement portfolios, it might be time to give Reverse Mortgages a second look.
For questions, please call Bryan Wild at 530-677-5484.

The New Math of Reverse Mortgages for Retirees Many of the negatives have been addressed with federal insurance and oversight. At the least, they’re worth considering for people who are cash poor and house rich.