Retirement planning is an endeavor that is inherently challenging because of the fact that you have to look so far into the future. Clearly, the earlier you get started the better, but the longer off retirement is the hazier the picture becomes. The keys are to be informed about all the elder law issues of the day so that you are cognizant of the relevant facts simultaneous to keeping your finger on the pulse of financial trends.
This being stated, many people who are looking forward to retirement in the relatively near future were significantly damaged by the financial crisis of 2008. There are those who are seeking answers because they simply do not have the liquidity that they need to make it through their retirement years comfortably.
One option that is available to many individuals is a Home Equity Conversion Mortgage, which is the government-backed form of a reverse mortgage. With these loans payments are made to you either incrementally, on an as-needed basis, or in a lump sum, and in return the lender receives equity in your home. Since are not required pay any money to the lender your income and your credit rating are not utilized as criteria to determine your eligibility. You need only be 62 years of age or older, have significant equity in your home, and live in it as your primary place of residence.
The loan becomes due and payable when you voluntarily move from the home or when you ultimately pass on. At that time either you or your heirs can sell the property and use the proceeds to pay off the outstanding loan balance. You may keep any remainder that exists after you pay off the reverse mortgage. It should be mentioned that you are not responsible to pay the difference if the value of the house at the time of sale was not sufficient to meet the loan obligation.
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