Financial Challenges Support Group
This community is for people who are struggling to meet financial obligations of any kind. Financial challenges include everything from the day-to-day challenges of making ends meet to managing credit card debt to bankruptcy. Get support from others who are going through similar obstacles on the road back to financial stability.
Hi everyone-it's been quite a while since I posted here, but I have a question. Has anyone used a Reverse Mortgage. Right now, I don't seem to have any options except this to save my house. My mortgage was payed off many years ago. The only thing I owe is the money from a home equity line of credit. I was late with a payment last summer, so they closed the account and told me that if I missed any more payments, they will foreclose on the house. For a couple months (Jan. and Feb.) they let me pay partial payments, and I thought they were really being nice, until they told me the rest of the payment had to be made up in the next 2 months or-foreclosure. So I put all my money-I don't have a job-I got a TBI in 2009, and have a hearing on the 20th of this month-that I get for social services toward the line of credit to keep them from foreclosing rather than to my regular expenses, so now my phone and tv are disconnected, the electric company has given a disconnect notice, and social services says they can't give me any more help.
So I contacted a reverse mortgage company that I saw online, not really thinking I would do it. But right now, it is the only way to keep my house. It would allow me to pay off the line of credit, as well as 3 years taxes that I am behind on, as well as other things I have defaulted on. I considered selling my house, but I would end up losing it before I had time to sell it. Any money that would be left over after I pay my major liens will allow me to survive until I get (hopefully) my disability. Social services is also dropping me because today I turn 62, so they are making me claim Social Security at 62 years old instead of 66. So I will lose 25% of what I would normally get, which might end up less than social services is giving me now.
With the reverse mortgage, nothing has to be paid back until I sell the house, or pass away. Only the money I use out of the reverse mortgage amount has to be paid back. The rest can go to my kids. So I'll try to use as little as I can.
But today, like I said, I turned 62. I have had no oil in my tank since June. I have a TBI, lupus, fibromyalgia, DDD, lymphedema, LCH and a couple of other problems. Taking cold showers only makes me feel worse, so I heat some water on the stove and take it upstairs to wash with. I wash my hair in cold water-not great for the TBI and migraines. In order to stretch out the oil use, I kept my house between 50-55 degrees in the winter. I do all dishes and laundry in cold water. I don't feel that at my age I should be having to live like this. I cannot get any more oil until the HEAP season starts, which is Nov. 15. I have gotten all the help I was allowed this year (Nov. 2010-Oct 2011).
So I decided I'll get the reverse mortgage and stop living like this. Hopefully, I will be approved for disability (the TBI, although a pretty mild one, still keeps me from doing most everything), and together with the reverse mortgage I will be able to survive. What do you guys think? This is the biggest decision I have had to make, as well as the most important. I usually had my older sister, who knew a lot about these things, to bounce ideas off, but she passed away the same week I injured my head, and no one else has any knowledge about them. I have to have a counseling session, on the phone, before I can be approved-that is on the 23rd. If that goes ok, then the house gets appraised, and we go from there. The guy said that if there are no problems it can be all done in about 5-6 weeks. I am so scared that I'm going to be making the wrong move, but I know it's the only thing I can do to keep my house.
Sorry this got so long-I didn't intend to write a book. I guess I need some reassurance that I am doing the right thing. Thanks for reading this! God Bless. Kathy
So I contacted a reverse mortgage company that I saw online, not really thinking I would do it. But right now, it is the only way to keep my house. It would allow me to pay off the line of credit, as well as 3 years taxes that I am behind on, as well as other things I have defaulted on. I considered selling my house, but I would end up losing it before I had time to sell it. Any money that would be left over after I pay my major liens will allow me to survive until I get (hopefully) my disability. Social services is also dropping me because today I turn 62, so they are making me claim Social Security at 62 years old instead of 66. So I will lose 25% of what I would normally get, which might end up less than social services is giving me now.
With the reverse mortgage, nothing has to be paid back until I sell the house, or pass away. Only the money I use out of the reverse mortgage amount has to be paid back. The rest can go to my kids. So I'll try to use as little as I can.
But today, like I said, I turned 62. I have had no oil in my tank since June. I have a TBI, lupus, fibromyalgia, DDD, lymphedema, LCH and a couple of other problems. Taking cold showers only makes me feel worse, so I heat some water on the stove and take it upstairs to wash with. I wash my hair in cold water-not great for the TBI and migraines. In order to stretch out the oil use, I kept my house between 50-55 degrees in the winter. I do all dishes and laundry in cold water. I don't feel that at my age I should be having to live like this. I cannot get any more oil until the HEAP season starts, which is Nov. 15. I have gotten all the help I was allowed this year (Nov. 2010-Oct 2011).
So I decided I'll get the reverse mortgage and stop living like this. Hopefully, I will be approved for disability (the TBI, although a pretty mild one, still keeps me from doing most everything), and together with the reverse mortgage I will be able to survive. What do you guys think? This is the biggest decision I have had to make, as well as the most important. I usually had my older sister, who knew a lot about these things, to bounce ideas off, but she passed away the same week I injured my head, and no one else has any knowledge about them. I have to have a counseling session, on the phone, before I can be approved-that is on the 23rd. If that goes ok, then the house gets appraised, and we go from there. The guy said that if there are no problems it can be all done in about 5-6 weeks. I am so scared that I'm going to be making the wrong move, but I know it's the only thing I can do to keep my house.
Sorry this got so long-I didn't intend to write a book. I guess I need some reassurance that I am doing the right thing. Thanks for reading this! God Bless. Kathy
Instead of doing a reverse mortgage have you checked into a reamoratization loan? Since you don't owe anything on the house except for the second lein you could do the such.
I am not one to ever recommend bankruptcy but in cases like this that is a thought because they can not take a home away from you for only a second lien on it..If you were to do a bankruptcy you could include the lines of credit and the defaults as well..But depending on the age of the defaults they may be close to coming off your credit anyways 7 years..4 if it was a contractual agreement such as phone bills, medical bills...
Try and apply for disability asap..Try a church that may help you for a month til you get a reply from disability..First though try the reamoratization.
Talk to the kids and see if they will be willing to help you for a month maybe 2 and let them know you don't want them to loose a potential money inheiratance if you do a reverse mortgage, because once you do the reverse they I believe make up fees and this or that and litterally everyone walks away with nothing but the people that did the reverse mortgage.
I am sorry for your predicament, I truelly hope things get better for you in a timely manner. I just don't think reverse mortgage is the wisest decision to make..