Did you know that divorce rates in the United States are actually on the decline? There is an exception to this and that is divorce rates among seniors. From 1990 to 2013 divorce rates among those 50 and older has doubled, according to research from Bowling Green State University.
Besides deciding on how to split assets, senior divorce can bring other issues such as strained finances and health problems. But it can also place larger burdens on adult children and government resources.
The most common result I see is one spouse keeps the house and the other keeps the liquid assets. In every one of these situations I am working with the spouse that kept the house. More often than not they either need access to equity to maintain the home, they need additional monthly income or they just need to get rid of the mortgage payment.
This month’s scenario is no different. The spouse keeping the home needed to get rid of the mortgage payment.
Donna gave me a call to see if a reverse mortgage was even possible. She and Frank were getting a divorce and she wanted to make sure Frank would be able to stay in the home. A few days later I met with Donna and Frank to run numbers and make sure it would work.
Because they had not filed divorce yet, they had two options. Start the process with Donna as a non-borrowing spouse or file for divorce and proceed with just Frank. They opted to file for divorce. Amazingly the divorce was finalized just 2 weeks later and I began the process with Frank.
Frank’s income between Social Security and his pension was only $2468 a month. His mortgage payment including taxes and insurance was $1366. Over 55% of his gross income was going out towards the mortgage payment.
By doing the reverse mortgage we were able to get his mortgage paid off and also get him a line of credit of $14,219. Taxes and insurance are only $278.87 a month. In other words we were able to free up $1088 of monthly income for Frank, plus give him access to a reserve fund.
Give me a call at 541-773-3131 and let’s discuss your situation. There is no cost or obligation to speak with me.
Who Do You Know? Who do you know that is 62 or older and thinking about getting a divorce, is currently going through a divorce or has recently been divorced? Send them my way to discuss how a reverse mortgage could have a massive impact on their lives for the better.
Did You Know? Did you know that I can do reverse mortgages on manufactured homes on land? The home has to have been built on or after July of 1976.