Elder Care Expert Advice

I spoke to a lovely lady last week about her financial situation. Let’s call her Mrs. Mason. She thought she was all prepared for retirement and in fact has been retired for over 13 years. She worked for 42 years at a company and had a nice pension and her social security. Her car was paid for and she only owed a small equity loan on her house. Recently, however, she has had trouble making ends meet. She noticed it last winter when fuel bills went up. She noticed it again this summer with gas prices being so high and also her grocery bills increasing more than ever. It’s just her and her two little dogs, but still the money is tight. When she got her new gas budget bill, it was a shock. She called the gas company and told them that she simply could not pay that much. They told her to “turn your thermostat down to 60 degrees”. She said that her sister and brother-in-law did that and her poor sister died of pneumonia last winter. Mrs. Mason, said to me, “Brenda, I am not going to do that, but I don’t know what else to do”.
I suggested she we looked at her situation to see if a Reverse Mortgage is a good solutions for her. Based on the estimate of her home value and her age, she would be eligible to receive $500 per month on a Reverse Mortgage. In addition, it could pay off the equity loan and save her $122 per month. The new total income of $622 would make a huge difference for her. Mrs. Mason’s situation is more common than people think. Many of them are living only on social security. Reverse Mortgages can definitely help them. The senior never makes a payment and the income they receive is tax free. One of Mrs. Mason’s concerns is that she would have to give up her title, but that is NOT required on a Reverse Mortgage. She will retain her title to the property until she no longer lives in the home.