How the Reverse Mortgage Benefits Your Children: Sandwich Jan

The Sandwich Generation

Sandwich Jan

Children of the sandwich generation are seeing the reverse mortgage as their solution to their parent’s debt woes.

Jan is a 45-year-old office manager of a law firm downtown.   She’s married with three teenage daughters, a nice home with a good size mortgage.   Like many families, her’s has its share of financial obligations every month, not to mention saving money for their family’s future.  But recently, Jan’s family had an additional financial concern.  Her mother.

Pat, is Jan’s 75-year-old mother who lives on the other side of town, in her home of the last 35 years.  Pat still works to pay for her mortgage payment, but recently, her work hours as substitute teacher had been fewer and fewer, which meant that Pat was having trouble every month to pay her mortgage.

Now, Jan had been giving her Pat $750 every month, to help pay her mortgage.  This was not sitting well with Jan’s husband, Eddie.  Even though he cares greatly for his mother-in-law; Eddie sees this was money that should be saved for their own family.  As you can guess, the stress had been building worse as the months went by.

Another concern was Jan’s employer.  You see, Pat could not afford the $800 of brake repair and tire replacement her car needs to run errands, let alone get to the school where she teaches.  So, Jan was taking long lunches at least once a week to drive Pat to the grocery store and other errands.  Recently, her boss had warned her that he will no longer tolerate these long lunches that take her away from her needed duties to the firm.

That was when Jan’s CPA, Adam, recommended a reverse mortgage for Pat.  The following day, Adam arranged a meeting at his office with Jan, Eddie, Pat and Pete Tentler – a reverse mortgage advisor – to understand all their available options.

Pete showed how they could replace Pat’s current mortgage with a reverse mortgage, thus eliminating her monthly mortgage payments, forever.  And with the remaining equity in her home created an additional $80,000 credit line available to Pat to use as she wishes, like buying a newer car.

In the end, Pat chose to get a reverse mortgage with Liberty and now:

• Pat is happy with no mortgage payment and she lives with dignity in her home for as long as desired. 
• Jan and Eddie are happy because they don’t need to worry about financially supporting Pat, every month.
• Jan’s employer is happy because Jan won’t need to take long breaks away from the firm to run her errands for her mother.

Now you can see how a reverse mortgage will benefit the children of the sandwich generation.

 If you are seeking to understand the truths of a reverse mortgage for you and your family, call Pete Tentler at 858.999.1776 for a no obligation, face to face meeting at your home or advisors office.

Right-Size Without Compromise®: How Realtors are Selling More Homes with a Reverse Mortgage for Purchase:

Did you know how you can purchase more home with a reverse mortgage from Liberty? No? Don’t feel embarrassed, your Realtor probably doesn’t know either.

Many homeowners that have been dreaming of moving to a new home that is more suitable for them, since they have become empty nesters. They wish to have a home that is easier to manage so they can enjoy their retirement years without the burden of maintaining extra bedrooms and large yards.

Downsizing Dilemma:
However, they don’t want to start over with a new mortgage payment and plan to find a home they can afford to pay all cash. This usually means they need to tap into their retirement savings or compromising on either the size or location of the new home (far away from friends and grandchildren). Unfortunately, compromising is not an option they are ready to accept and, therefore, they usually stay put in their big home.

Recently, a couple was selling their home in a prestigious zip code in San Diego. They planned on netting $300,000 from their sale and were planning on buying a home for cash. Unfortunately, their Realtor had told that $300,000 meant a small condominium in San Diego, or an acceptable size home located over 65 miles away from all their friends and their grandchildren, something they didn’t plan.

Advisor’s Solutions:
Fortunately, their financial planner heard me speak about the reverse mortgage for purchase plan and made the introduction. When I met this couple, they told me they were ready to give up and take their home off the market and just stay put in Encinitas. Mark told me, “We thought that by selling our home we would be right-sizing.” Then Monica added “But when we saw the homes in our price range, we quickly realized we were not only downsizing, we were compromising. Something we never had to do before.”

I showed them how they could qualify for a home of $535,000 with a down payment of about $265,000 with our reverse mortgage loan. This meant that they would still have no mortgage payment and, more importantly, they could stay in San Diego among their friends and grandchildren.

Right-Size Without Compromise:
“The reverse mortgage for purchase plan was perfect and came just as we were about to give up,” Monica said with great relief. When I met their daughter, Jen “I’m glad my parents had the option of not moving so far away from everyone. Our kids love to visit Gamma and Poppy on the weekends, and our folks make the perfect babysitters so we can have a night for ourselves.”

More Benefits to Reverse Mortgage for Purchase:

• Eliminate mortgage payment
• Remain in area with family and friends
• Right-size to lower maintenance cost home

Close More in Reverse:
At the close of escrow, their Realtor was ecstatic, realizing there was the untapped market of listings and buyers for her firm. “I’ve heard of reverse mortgages before but I never knew you could finance the purchase of a home with one. I know so many people that have been wishing to sell their home, but they were hesitant because that also meant having to compromise. Now I’m able to show them how to right-size, with dignity”

Now you know how everyone wins with a reverse mortgage for purchase plan.

Empty Nesters are Learning How to Right-Size Without Compromise®, with a Reverse Mortgage for Purchase

Right-Size Without Compromise: Reverse Mortgage for Purchase Plan

by
Pete Tentler
The Financial Locksmith®

Many empty nesters are discovering how to right size without compromise when they apply a reverse mortgage to finance their new home.

So, you’ve been thinking about downsizing but to a more manageable home for your retirement years, but you’re concerned that you might have to compromise the size or location of your new home during retirement?   Did you know how you can purchase more home with a reverse mortgage from Liberty?  You should not feel embarrassed, your Realtor probably doesn’t know either and she is in the business

Downsizing Dilemma
Many homeowners that have been dreaming of moving to a new home that is more suitable for them, since they have become empty nesters.  They wish to have a home that is easier to manage so they can enjoy their retirement years without the burden of maintaining extra bedrooms and large yards.

These homeowners typically don’t want to start over with a new mortgage payment and plan to find a home they can afford to pay all cash.  This usually means they need to tap into their retirement savings, or compromising on either the size or location of the new home.   Unfortunately, compromising is not an option they are ready to accept and therefore they usually stay put in their big home.

Recently, Monica and Mark were selling their home in a prestigious zip code in San Diego.  They planned on netting $300,000 from their sale and were planning on buying a home for cash.  Unfortunately their Realtor had told them that $300,000 meant a small condominium in San Diego, or a home located over 65 miles away from all their friends and their grandchildren, something they didn’t plan.

Financial Advisors Solution
Fortunately, their financial planner had heard my discussion of Liberty’s reverse mortgage for purchase plan and made the introduction.  When I met this couple, they told me they were ready to give up and take their home off the market and just stay put in Encinitas.  Mark told me, “We thought that by selling our home we would be right-sizing.”  Then Monica added “But when we saw the homes in our price range, we quickly realized we were not only downsizing, we were compromising.  Something we never had to do before.”

Right-Size Without Compromise®
I showed them how they could qualify for a home of $535,000 with a down payment of about $265,000 with our reverse mortgage loan.   This meant that they would still have no mortgage payment and, more importantly, they could stay in San Diego among their friends and grandchildren.

• They qualified to purchase a new home of $535,000
• Their down payment of 45%* from the sale of old home
• They would still have no mortgage payment
• They Right-Size and stay in their area among friends and family

“The Liberty home purchase plan was perfect and came just as we were about to give up,” Monica said with great relief.  When I met their daughter, Jen “I’m glad my parents had the option of not moving so far away from everyone.  Our kids love to visit their Gamma and Poppy on the weekends, and our folks make the perfect babysitters so we can have a night for ourselves.”  

Reverse Mortgage for Purchase
At the close of escrow, their Realtor was ecstatic, realizing there was an untapped market of listings and buyers for her firm.  “I’ve heard of reverse mortgages before but I never knew you could finance the purchase of a home with one.  I know so many people that have been wishing to sell their home, but they were hesitant because that also meant having to compromise.   Now I’m able to show them how to right-size, with dignity“

Now you know how you can Right-size without Compromise®, with a reverse mortgage home purchase plan 

*Down payment based on borrower age of 70 years-old

How a Reverse Mortgage Helps Enhance Your Golden Years: Dr. Bernie Goes 1st Class

Dr. Bernie Goes 1^st Class

by

Pete Tentler

The Financial Locksmith

Seniors are enjoying their retirement years, worry-free, by unlocking their equity with a reverse mortgage credit line

Dr. Bernie is a retired physician, 88 years old and recently widowed.  He owns his home free and clear and has plenty of money in retirement savings and is living comfortably.   Bernie was just looking into a reverse mortgage as a means to enhance his lifestyle.

Although he is still mobile, he knows that the time will come soon when he will have trouble getting around, so he would like to seize the opportunity to travel the world, something he always dreamed of doing in retirement years.  Since the loss of his wife of 50 years, however, he says he’s having trouble getting motivated.

When I met Bernie, I explained how the reverse mortgage works and that there would be no monthly payments for as long as he lives in his home.  He was delighted to learn that he could borrow money without the worry of monthly payments.

Bernie asked if he could use the stand by line of credit to pay for in-home care, if and when he needed it.  I explained that the money was his, he earned it and, yes, he can do use the money however he pleases.   He was relieved at this answer.

Then, I showed him that we could provide a no closing costs line of credit for $435,000.  He laughed and said, “What on earth would I do with all that money?” He paused for a moment and then said,   “But I guess I could see treating myself to a trip throughout Europe, one last time!”

I could see Bernie suddenly regaining in lost motivation to live.

“The trip I mapped out would cost between $21,500 and $32,750.”  I did not understand the vast price difference and I was worried that he might have fallen victim to an internet scam, so I asked, “Bernie, what’s the difference between a trip costing $21,500 and a trip costing $32,750?”  Then Bernie replied with a new found gleam in his smile, “Well if I spend $32,750, I’ll be going first class, but I’m not sure I deserve it.”  Now that brought a gleam in my smile and then I retorted; “Bernie, for heaven’s sake, you’ve earned it.  Go first class!”

I was thrilled to see that the reverse mortgage helped Bernie find his motivation for life again.

If you or your advisors want to understand the truths of a reverse mortgage, call Pete Tentler at 858.999.1776, a trusted advisor serving the reverse mortgage community since 1994.

 

Seniors are Sharing Their Legacy Today with a Reverse Mortgage: No Cost – No Brainer

Kevin & Sharon were visiting with their in-laws over the holidays when Kevin’s sister Susan, brought up their financial crisis.  Susan and her husband, Bill, had accumulated a hefty credit card indebtedness from the medical setback he encountered last summer.  They had asked if Kevin & Sharon would attend a meeting they had scheduled at their home, the following day with Pete Tentler, a reverse mortgage advisor.

It was then that Kevin and Sharon realized how fortunate they were.  They paid off their mortgage over 10 years ago and maintained a debt-free lifestyle ever since.  They never considered a reverse mortgage because they believed it was an option only for people in a financial crisis like Susan and Bill.

However, their beliefs changed quickly after the meeting when Pete explained several key features of the reverse mortgage including:

• Federal Housing Administration (FHA) insured HECM loan
• Flexible options on how they can receive disbursements
• Loan proceeds are tax-free

The next morning, Kevin and Sharon contacted Pete who agreed to meet with them at their financial planner’s office later that week.

Kevin’s financial planner, Aaron, was very skeptical about the meeting thought it was a waste of time.  “What do you need a reverse mortgage for?  They charge high closing costs and you will lose your home in the end so your children get nothing, and therefore should only be considered as last resort.”  Even though Aaron expressed his cynicism, he agreed to meet with them and the reverse mortgage advisor.

During the meeting, Pete addressed Aaron’s pessimism and explained the realities to the myths believed by many professional advisors, including:

• Borrower retains title and heirs inherit remaining equity after the loan is paid off
• Most closing costs are financed into the loan resulting in little to no up front
• Credit line growth rate regardless of the value of their home

Toward the end of the meeting, Aaron’s skepticism changed to optimism.  “I regret my skepticism and I wish I met Pete years ago.  I could have helped many of my clients enjoy their retirement years better by utilizing a reverse mortgage as a tool to secure their financial future.  I will be recommending Pete to all of my clients.”

Aaron, Kevin, and Sharon decided to choose the credit line with zero closing costs option.  “It really was a no-brainer,” Sharon said assertively.  “The reverse mortgage credit line unlocked the equity in our home, with no closing costs.  You don’t need to be in a financial crisis to enjoy the benefits of a reverse mortgage.  Why wouldn’t you get this?”

Several months later, Kevin and Sharon decided to borrow some of their money on the credit line.  “We gave our daughter, Diane,  $50,000 for a down payment on a home nearby.  The reverse mortgage allowed us to share and enjoy some of her inheritance today while we are still alive.  Our only stipulation was that would be invited for Sunday dinner every week to see the grandkids.”  With that, Diane replied, “Well, that’s a no-brainer!”

Reverse Mortgage Myth#2: “The Bank Owns My Home”

 

Myths & Misconceptions:

Explaining the truths of reverse mortgages

What the heck is a HECM?

Myth #2  “So, I sign my home over to the bank now, right?”

Reality:  “Wrong.”  Your home stays in your family estate until the day you move out.

“Wait, I thought that the bank now owns the home and when my client dies, the reverse mortgage company gets the home and all the equity, right?”   

Alan R.  Certified Financial Planner

Wrong, Alan, but many professional advisors believe the same thing, thereby misunderstanding the main benefit of the reverse mortgage (HECM) options which keeps their clients safe at home while enhancing their financial future.

Your client keeps the home in their family estate for as long as they maintain the property and claim it as their primary residence.

“What do you mean, maintain?  And what if they like to travel, visit their grandchildren, or if they want to fly south for the winter months?  Then, does my client lose their home?”  

These are great questions, Alan.  You are asking important questions and it obvious you are looking out for your client’s best interest.

Your client must maintain proper upkeep of their home.  Make sure that home is habitable and not a hazard to their well-being or the collateral of the home.  We rarely have an issue with our clients taking pride in their home ownership.

Although our clients will never need to make another mortgage payment under our HECM program, they will be responsible for keeping their homeowners’ insurance and property taxes current, just like every homeowner would.

We have many of our HECM clients that love to travel, love the idea that our HECM program has given them the financial liberty to exercise this freedom of travel.  Whether they are visiting family and grandchildren for weeks at a time or if they vacation in the warmer climates for months at a time, they must maintain their primary residence for 6 months plus 1 day, out of the year to keep the HECM program in place.

“That’s it?  Really?”

Really, that’s it.  All you have to do is continue to pay your property taxes, insurance and keep up with proper maintenance and your home is forever yours!

If you or your advisor needs to know the realities of a reverse mortgage, call Pete Tentler at 858.999.1776, a trusted advisor serving the reverse mortgage community for over 20 years. 

Reverse Mortgage Ignorance Could Cost Your Client’s Trust

How Ignorance Could Cost Your Client’s Home

by

Pete Tentler

The Financial Locksmith

Arrogant Advisor

A few years ago I was competing in a friendly golf tournament when my opponent, Larry – an estate planning attorney for the past 40 years – asked me what I did for a living.  When I told him that I was a reverse mortgage advisor his demeanor diminished and replied, “I would never, ever recommend a reverse mortgage for any of my clients.  Even if they were out of money, I would recommend anything but a reverse mortgage!”

After our match, we headed to the 19^th hole and the tournament reception with other members and their spouses.  It was there when Larry’s wife Carol arrived.  Larry introduced me, “Honey, this is Pete.  Watch out, he preys on old people and cheats their children out of their inheritance.”  Carol looked perplexed and asked me what I did for a living, but Larry interrupted and responded, “He sells reverse mortgages.  That’s when you get a sign your home over to the bank and get a monthly check.  But when you die, the bank gets your home and your kids get nothing.”

Carol looked at me and said, “Well that doesn’t sound like a good deal at all.  Why would anyone do a reverse mortgage on those terms?”

I replied, quickly so that Larry wouldn’t interrupt me again, “Well Carol, that’s because that’s not how reverse mortgage works at all.”  Several people began to gather around us to listen as I explained some of the features and benefits of the FHA-insured reverse mortgage including:

• Keep your home and maintain title as long as you live in the home
• Heirs will inherit home and any remaining equity after paying off loan
• Funds can be disbursed in a lump sum, monthly payments, credit line or a combination of all three

Carol replied, “Well based on those terms, who wouldn’t want a reverse mortgage?”  The other members that have gathered had agreed, except for Larry.

I noticed Larry was looking rather nauseous by my explanation that debunked his misconceived perception of the reverse mortgages.  Later, he confessed to me in private, “In the last two years, I had three clients lose their home to foreclosure and now I realize that I could have saved their home with a reverse mortgage.  My ignorance cost my clients their home.  I regret everything I said about you and reverse mortgages.”

The following week I received a phone call from Larry’s office inviting me to make a presentation to the other law partners of the firm so they will understand the truth and benefits of a reverse mortgage for their clients.

###

Learn the Realities

There are many professional advisors that are unfamiliar with the realities and benefits of an FHA-insured reverse mortgage.  If you or your advisor needs to know the realities of a reverse mortgage, call Pete Tentler at 858.999.1776, a trusted advisor serving the reverse mortgage community for over 20 years.

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