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Losing a Spouse That Controls the Checkbook Along With Half the Household Income

Ann (not her real name) is 81 years old. She lost her husband late last year. Throughout their entire marriage Ann never paid bills, never made any of the financial decisions and for the most part was unaware of what was happening financially in the household.

Luckily, her daughter and son in law lived nearby and were able to help her put the financial puzzle left by her late husband back together. However, what they found was disheartening.

Ann’s husband had multiple credit cards that were close to being maxed out, a couple of personal loans and he had not paid property taxes for the last year. This was especially troublesome as Ann could not cover the payments or her other living expenses because the household income had dropped significantly with her husband’s passing.

Ann’s daughter and son-in-law were able to help Ann get a debt consolidation loan through Ann’s credit union. This made the payment more manageable but things were still very tight.

It was at this point that Ann’s son-in-law reached out to me to see if a reverse mortgage might be the right solution for Ann. Based on their estimated value, there would be enough to get the debt consolidation loan paid off as well as set up a reserve in the form of a line of credit.

By getting the debt consolidation loan paid off, we were able to free up almost half of her monthly cash flow. This gave her much more disposable income and helped her remove much of the anxiety that tight budgets can produce.

With her family’s help, Ann now has a budget, she balances the check book each month, she is setting money aside to pay her taxes and insurance and she is now able to save some of her income towards a rainy day fund. On top of that, she has a nice five figure line of credit available to her as a backup.

Have questions about reverse mortgages? Need help? Give me a call and let’s talk about your situation and see if a reverse mortgage is the right choice for you.

I work with clients all over the state of Oregon. I have worked with clients in Klamath Falls, Grants Pass, Medford, Brookings, Coos Bay, Bend, Eugene and more.

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