HOUSING OPTIONS – ELLEE CELLER, REALTOR – Informing and hopefully protecting “mature” adults from real estate risks that can overturn ones’ retirement is the goal of my posts.
Most of us hope, I think, to live and die in our home. This has become less predictable in the last few years. Recently the Oregon Legislature heard of an elderly brother and sister who lost their home because a local municipality made a utility improvement and placed a lien on the home of $7000, which they could not afford. The present law states that the State of Oregon cannot accept a bid of more than is owed ($7000 in this case), in spite of higher bids being made. There is now legislation changing this so that the couple would have sufficient funds to hopefully find other accommodations.
Recently the bank with which I have my mortgage announced that it would no longer refinance mortgages. It will only do Reverse Mortgages. This bank is part of a major insurance company. The bank, it seems, sees its profit model in Reverse Mortgages. These are not for everyone who is over 55 and owns a home, but i am afraid that those who do not have good advice will now become at risk of losing their homes through this tactic. Or the heirs will lose their inheritance to the banks/insurance companies. My advice is to study and/or consult reliable sources on the subject of Reverse Mortgages. Here’s a great link to a government website that will provide some basic information on reverse mortgages. Thinking positively, and cautiously, Ellee