Now What: Beg, Borrow Or Sell? A Reverse Mortgage Story

• When there is too much month left at the end of the money.
• When something you need breaks and your repair plan is broken.
• When an emergency arrives after you emergency funds have departed.
• When you simply want to live a simple life and need a simple solution.
• When the one you love is gone.

None of us have control over the cost of things or the timing of the unexpected things that cost us the most. So the better question is; what do we control?

Ultimately we control only two things, what we think about and what we believe. When you combine a peaceful mind with strong faith, you are far better prepared to make those all important everyday decisions.

I believe we control our side of the most important things in life: Our relationships, our positive habits and we control our decisions. 

In retirement our financial decisions are far more crucial than during our working and earning years. We can’t earn it again and we certainly don’t want to lose it this time through.  

This is a story about a lady who was facing all of the five “When-Bullet points” at the beginning of this piece. I call this:

Now What: Beg, Borrow Or Sell?

I got a call from a lady who lives fairly close to me. She found our Remarkable Reverse Mortgage profile on Google. 

After chatting a bit, I asked her, “What do you know about a Reverse Mortgage?” 

She said, “I’ve read a lot about a Reverse Mortgage but I don’t think it’s right for me.”

“Please, tell me what you’ve read.” 

“I know it’s a loan on my home, and my home is off by the way. I’ve heard the cost is pretty high and the interest builds up on any money I owe. Other than that, I don’t know a whole lot.”

“Sounds like you know quite a bit. It’s true, the cost is a big part of the deal, and the interest will build-up, or ‘accrue’ on your loan balance. Could I ask you a more personal question?”

“Sure.”

“Why are you interested in a Reverse Mortgage?” 

She told me her story. Her husband had died a few months earlier with Covid 19. His Social Security had now stopped. Her stove had stopped working and one of her children was having difficult times and was moving back in. She was able to get by on her own income, but didn’t have any extra money for emergencies.

We set a time for me to come by with a Reverse Mortgage proposal. She met me at the door and invited me in. Her home was full of family photos and keepsakes. We discussed the details of her proposal, the specifics of her loan and the next steps. 

Then she said this, “I’m afraid to put a loan on my home. My husband and I fought to pay this house off. We had a huge disagreement with our HOA, we ended up in court. The whole affair did not go well and it cost us a big part of our savings. Then he died, suddenly.”

My heart was broken for her. She made coffee, we made small talk and I prepared to leave. 

On my way out she said, “I don’t owe anyone anything to anyone. I don’t want to borrow money. I won’t beg and I certainly don’t want to sell my home.”

I understood exactly what she was saying. 

She continued, “Mark, thank you for coming by. I will look over these papers and let you know what I decide.”

She called me a few days later. “Hi Mark, I made an appointment for counseling.”

“So, you want to go forward with a Reverse Mortgage.” I asked. “Last time we talked you mentioned not borrowing any money.”

“That’s true, I don’t want that. After reading those papers and thinking about my options I realized that I’m not ‘borrowing’ money, like using a credit card or taking out a personal loan. This money is my money, our money, my husband and I earned this. And I need to have money available, and this is the best choice for me.”

We closed her Reverse Mortgage at her table 6 weeks later. And yes, she bought a new stove out of her Line of Credit.

A Real Reverse Mortgage Story.

Thanks for stopping, looking & listening