Reverse Mortgages Offer Seniors a Way to Turn Home Equity into Tax Free Cash!

In most circumstances, this is absolutely true!  However, having the right guidance will help you get the most cash out of the equity of your home.  But please, don't rely on mortgage brokers, or AARP, or even the bank itself, to help you get the most cash out of the equity of your home.  These companies, or the companies they refer you to, only serve the banks.  Banks, obviously, want to limit the amount of cash you get while still charging you their highest rate of interest.

With an attorney on your side, who represents you and only you, you will know that you are protected and will be able to get the most cash out of your home with a Reverse Mortgage. And, we, as your attorneys, may be able to help you keep that cash away from hospitals, nursing homes, estate taxes, or any other creditor you may have.

A Reverse Mortgage, when combined with your estate plan, will keep your cash away from the clutches of the government.  A Reverse Mortgage, when combined with your Medicaid plan, will keep your cash away from the clutches of hospitals, doctor bills, and nursing home costs.  And, it may even qualify you for Medicaid.

The first step is to call us.  As attorneys, we will work with you and a reputable Reverse Mortgage broker to get you qualified for a Reverse Mortgage.  We will ensure that, if qualified, you will get the most cash out of the equity of your home, and be able to protect that cash.

The second step is to learn what a Reverse Mortgage is.  You can read below to get more information on Reverse Mortgages, or simply call us or email us and we will work directly with you.  Call us at 212-594-5500, or Email us at lawyers@asherlawfirm.com.

Generally, there are only two ways to get cash from your home:

• you could sell your home, but then you would have to move; or

• you could borrow against your home, but then you would have to make monthly loan payments at sometimes a high rate of interest.

However, we may be able to help you get qualified for a Reverse Mortgage.  A Reverse Mortgage gives you a third (and much better) way of getting cash from your home. And you won't have to move, and you won't have to make monthly payments.  In fact, a Reverse Mortgage doesn't require you to make any repayments whatsoever.

A Reverse Mortgage is a loan against your home that you do not have to pay back for as long as you live there.  You can get the cash in a lump sum.  Or, the cash can be invested for you and given to you in regular monthly advances at times and in amounts that you decide.

Are You Eligible?

A Reverse Mortgage is not right for everyone.  However, if its right for you, why not take advantage of it?  You can qualify for a Reverse Mortgage based simply on the value of your home and your age.  The amount of cash you can get also depends on the specific Reverse Mortgage plan or program you select and qualify for.  The differences in available loan amounts can vary greatly from one plan to another.

All borrowers must be at least 62 years of age for most Reverse Mortgages. Owners generally must occupy the home as a principal residence (where they live the majority of the year).

How Do They Work?

With a Reverse Mortgage you typically do not have to make any payments for as long as you live in your home.  A Reverse Mortgage must be repaid in full when the last living borrower dies, sells the home, or permanently moves away.

Since you make no monthly payments while you are living in your home, the amount you owe increases over time.  But you will never owe more than your home's value at the time the loan is repaid.

Typically, a Reverse Mortgage borrower keeps the loan until he or she passes away.  This means that your children will have to repay the loan.  This will qualify as a debt against your estate for estate tax purposes.  This will also qualify as a debt against your estate for Medicaid purposes.  And, since you receive the cash now, you will be able to properly invest it now for the benefit of your children.  Don't leave your home to your children at your death with the hope that they will sell it for profit.  Set up their benefit now and protect that benefit with the cash you get from your Reverse Mortgage.

What Do You Get?

The cash from the Reverse Mortgage can be paid to you in a single lump sum.  Or, if properly invested, can be paid to you in regular monthly payments.  Or, deposit the cash as a credit line that lets you decide how much cash to use and when to use it.  Or, with the proper guidance, you may choose any combination of these payment plans.

Be careful though....Some Reverse Mortgages are offered by state and local governments and may only be used for specific purposes, such as paying for home repairs or property taxes.  Many times your mortgage broker or bank will not tell you this. 
 

What Do You Pay?

Each Reverse Mortgage plan comes with certain costs and expenses.  Again, mortgage brokers and banks don't always tell you these costs up front.  With an attorney on your side, you will know each of these costs in advance and will be able to make the best decision for you. 

Many times these costs and expenses can be paid from the loan proceeds.  So, if right for you, you may not be out-of-pocket for any of these costs. 

Taxes, Estates, and Public Benefits

Reverse Mortgages may have tax consequences, affect eligibility for assistance under Federal and State programs, and may have an impact on the estate and heirs of the borrower.  However, with our guidance, we should be able to reduce, if not eliminate, these consequences.

There are certain IRS rules that govern Reverse Mortgage loan advances.  There are also certain Medicaid rules that include Reverse Mortgage loan advances as "available resources". Don't pay outrageous estate taxes or become disqualified for Medicaid simply because you did not get the benefit of proper legal advice. 

CALL US at 212-594-5500 or EMAIL US at lawyers@asherlawfirm.com to learn more about Reverse Mortgages.

Call us for more information about the above, or other services which we may help you with.