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aarp reverse mortgages

AARP sues HUD over Reverse Mortgages: What is a reverse mortgage

netitle.net ttp hughfitzpatrick.com In this video, real estate attorney hugh Fitzpatrick from Tewksbury Massachusetts discusses the lawsuit ...

Tom Kelly: Let's keep seniors from falling through the cracks

Sometimes, the best-laid plans …

A reverse mortgage historically has enabled senior homeowners to convert part of the equity in their homes into tax-free income without having to sell the home, give up title, or take on a new monthly mortgage payment. Reverse mortgages are available to individuals 62 or older who own their home.

Funds obtained from the reverse mortgage are tax-free. The proceeds can be received in a lump sum, regular monthly payments, a line of credit or in a combination of those options. Interest is charged on the amount drawn, adding to the original amount. When the house is sold, or the last remaining borrower dies or moves out of the home, the loan amount plus the accrued interest is repaid. The borrower makes no monthly payments and cannot owe more than the value of the home.

We have a friend – let’s call her Sally – who gathered all the reverse mortgage information she could find for her mother, now age 97. Sally even attended the mandatory reverse mortgage counseling session in her mom’s behalf.

Retirement planning should include long-term care costs

“This is not like being struck by lightning. It is something we will all face in our lives,” said Bruce Chernof, president and CEO of the SCAN Foundation, which researches care for older adults. “If we don’t need it ourselves, it is likely that our spouses, our significant other or our parents will. One way or another, it will touch the lives of every single American.”

The U.S. government estimates that 70 percent of people aged 65 today will require some form of long-term care during their lives. Most of the time, that type of assistance is non-medical, including help with daily tasks such as bathing. The need can arise unexpectedly after a major illness or even suffering an injury from a fall.

The costs of such care can easily outstrip retirement savings: A 65-year-old today can expect to incur $138,000 in long-term care costs over their lifetime, according to a 2017 Bipartisan Policy Center report. Two-thirds of Americans age 40 and up say they’ve done little or no planning for their long-term care needs, according to a poll conducted this year by the Associated Press-NORC Center for Public Affairs Research, with funding from the SCAN Foundation.

Is Filing For Bankruptcy In Retirement A Good Thing?

The number of people filing for bankruptcy protection in retirement has soared in recent years — even before the recession.


Filing for bankruptcy would not include long term care since you have to pay monthly for assisted living or nursing care. You are correct that those are out of pocket costs unless you are on Medicaid.