Reverse Mortgage is answer to a prayer

I have recently been involved in a transaction that has made me feel better about doing a single piece of business than any loan I have made in a long time.

My borrowers were a couple in their mid 70's. They had already entered into Chapter 13 Bankruptcy 3 years ago. They had been making payments of almost $300 per month for those three years, and were not happy with the thought of another 2 years making those payments. They found themselves with only their social security incomes after a recent tragic even in their life had cost them their life savings.

They had even needed to borrow $24,000 from their next door neighbor, as they had no family. They simply did not have enough income to survive, even though they owned their home of many years free and clear. Their options left them little to do but to sell their home in a depressed market and rent a small apartment. Their spirits were quite low when they entered my office.

I explained to them that by using the equity in their home I could arrange financing for them that they would never need to repay. The financing that I explained to them would pay off the remaining $10,000 on their Chapter 13, relieving them of those dreaded $300 monthly payments. Their neighbor would be paid back the money he borrowed from them, It would also put $6,000 money in their pocket. There was availability to a $20,000 line of credit. They would also receive additional $600 a month income for the rest of their lives!

Any heirs would still inherit their home with a mortgage outstanding for the funds that they had received.

When in the midst of the credit "crunch" we have so many worries and stress, it is so encouraging to be able to help someone.

I mentioned this loan in an earlier post, but now that I have closed the loan I just wanted to share this story of the completed transaction, knowing how well things turned out.