Reverse Mortgages and Older Homeowners

For many of us, the older we get, the fewer options we have, especially when it comes to finances. That’s just reality. However, you may have more options than you’re aware of. Many older people justifiably feel that their financial options are limited. You may not be able to borrow, for example. But you shouldn’t go digging into your retirement funds without considering some other options first. If you’re retired in the Chicago area, get the sound legal and financial advice you need by speaking with an experienced Chicago bankruptcy lawyer.

For many older and retired people, a home is their largest asset, and a home equity loan is typically the way to take advantage of that asset. But a home equity loan has to be repaid with interest that can quickly grow into a burden. Tapping your IRA or 401(a) can cover debts for the moment, but that hurts you in the long run. There are other options you should consider. For many, a reverse mortgage is a genuinely good idea.

A reverse mortgage lets you tap into the equity of your home without having to make monthly payments. In fact, the payments come to you. There is no credit or income requirement, and while it’s not right for everyone, a reverse mortgage might be right for you. A good bankruptcy lawyer can assess your financial situation and help you make the right decision.

To obtain a reverse mortgage, homeowners have to meet age requirements and reside in a primary residence. Retirees use reverse mortgages for a variety of purposes including current mortgages, other debts, and down payments on smaller homes. If you’re in or near Chicago, face mounting debts, and need sound financial and legal counsel regarding your options, speak to an experienced Chicago bankruptcy lawyer as quickly as possible.