Divorcing Seniors In Oregon

3 Important Things

Divorcing Seniors

Need To Know

541-773-3131

1555 E McAndrews Rd Suite 301

Medford, OR 97501

This presentation is not approved or endorsed by HUD or FHA.

Credit on Approval. Terms subject to change without notice.

Not a commitment to lend. Call for details.

Matt AllenMLO 254296Senior Reverse Mortgage Banker

Cell: 541-324-8887Office: [email protected]

m

OregonReversePro.com

Dreams Approved Daily®

http://oregonreversepro.com/

Alimony Is Almost Always Granted After

Long Term MarriagesAlimony awarded will vary greatly, but, divorcing seniors should

expect it to be a part of the divorce proceedings.

In New York, for example, the court will generally give alimony for

life,” says Bruce Provda, a divorce attorney in New York City.

“If they’re working, they’re going to pay some alimony,” says Bob

Boyd, a partner with the Atlanta law firm Boyd Collar Nolen &

Tuggle.

How will you or your soon-to-be ex be able to afford this?

Source:

http://money.usnews.com/money/retirement/articles/2015/04/24/7-things-to-know-about-divorcing-during-your-senior-years

Divorcing Seniors


Your Retirement Savings May Be Cut In HalfAttorneys say retirement funds and other assets are very likely to be split evenly.

“What looked like a lot of money to live on in your senior years doesn’t look like much when cut in half,” Bob Boyd, a partner with the Atlanta law firm Boyd Collar Nolen & Tuggle.

How are you going to deal with less money during retirement?

Source:http://money.usnews.com/money/retirement/articles/2015/04/24/7-things-to-know-about-divorcing-during-your-senior-years

Divorcing Seniors


Keeping The House Usually Means You Give Up Something Else Dealing with the long term marital residence can be very emotional.

Assuming assets are being split evenly, keeping the house can mean giving up other retirement assets such as stock, bonds, 401K, etc.

Paying a spouse their portion of equity is another strategy, but can come with other issues, such as being able to individually qualify for a new mortgage.

Selling the home is another option.

How are you going to deal with your home?Source:

http://money.usnews.com/money/retirement/articles/2015/04/24/7-things-to-know-about-divorcing-during-your-senior-years

Divorcing Seniors


There Is A Solution That Divorcing Senior Homeowners 62 Or Older Should Consider

Divorcing Seniors


That Solution Is…..

A Reverse Mortgage

Divorcing Seniors


HECM, Home Equity Conversion Mortgage, Reverse Mortgage

•A HECM for purchase allows seniors, age 62 or older, to purchase or refinance a principal residence using loan proceeds from the reverse mortgage.

•There are no payments due until you vacate the property for 12 months due to illness, the property is sold, interest is transferred or the mortgagor passes away and there is no eligible surviving spouse to maintain the property as their primary residence.

•Borrower must maintain the property and continue to pay taxes, insurance and other related housing expenses.

What Is A Reverse Mortgage?


How Do They Work?•Loan amounts are based on age and home values. •The older you are, the more you can borrow. •Must be 62 or older. •A 62 year old could borrow roughly 50% of the home’s value.* •An 80 year old could borrow roughly 66% of the home’s value.*•*Subject to certain loan limit restrictions. •These mortgages are extremely flexible. There are various ways to access equity with payment options, including nothing. •Interest, mortgage insurance and servicing fees (if any) are added to the loan balance. •The loan balance increases over time.

What Is A Reverse Mortgage?


There are multiple scenarios on why you may want to consider a reverse mortgage.

1.Keep the house – refinance to access equity to give spouse their share.

2.Keep the house – pay off current mortgage to be able to afford the home.

3.Sell the house – use proceeds to purchase another home utilizing a reverse mortgage.

Why Consider A Reverse Mortgage?


#1 Keep The House – Give Spouse Their Share Of Equity

•Works when home is owned free and clear or has a small balance.

•Could be a better option than a traditional mortgage or HELOC because there are no monthly payments.

•Could create the ability to retain more in the way of any existing retirement funds.



#2 Keep the house – pay off current mortgage

•Depends upon existing mortgage balance.

•May be able to pay off current mortgage and access additional equity.

•Could make the home affordable enough to keep.

•Could be cheaper than renting.



#3 Sell the house – use proceeds to purchase

another home.

•Works best when home is owned free and clear, has a small

balance or when buying a less expensive home.

•Could provide ability to buy similar quality house.

Rough scenario: $300,000 home owned free and clear.

After fees and commissions to sell the original home, each spouse

might net an estimated $140,000. (The number will vary based on

real estate commissions, title & escrow fees, etc.)

There is the possibility that each spouse could buy around a

$250,000+ home or more, depending upon age(s) and after other

costs, with a reverse mortgage and not have monthly payments.



Will Any Of These Options Work For You?

Do Any Of These Options Make Sense For You?

I Don’t Know?

Call 541-773-3131Ask for Matt



Who Has Heard Bad Things About Reverse Mortgages?

Myths About Reverse Mortgages


The Bank Owns Your Home FALSE. You own the home. It is just like any other

mortgage where there is a lien against your property. You are on title to the home, not the bank.

Heirs Can Not Inherit The Home

FALSE. When you pass away, the estate gains control of the property. The estate has the option of keeping and refinancing or selling the home. This would be the exact same as if there was a “regular”, or forward, mortgage on the home.



You Can Outlive A Reverse Mortgage

FALSE. The balance is not due until the property is sold, interest is transferred, it is vacated for more than 12 months due to illness, the mortgagor passes away and the property is no longer used by an eligible surviving spouse as their primary residence or when terms and conditions of the loan have been violated, i.e. not paying taxes, insurance, assessments, etc.

Social Security and Medicare Will Be Affected

FALSE. Social Security and Medicare will not be affected by a reverse mortgage. However, some programs such as Medicaid or SSSI may be affected. You should consult with a financial advisor to see how a reverse mortgage may affect your eligibility for these programs.



You, or Your Estate, Could Owe More Than The

Home is Worth

FALSE. The HECM reverse mortgage is a “non-

recourse” loan which means that the lender cannot

pursue the borrower, the estate or the heirs for any

losses associated with the loan balance having

increased past the home’s value.



Proposal: Meet with loan officer, run the numbers, ask questions, seek education, discuss LESA, fees, rates, loan options, etc.

Counseling: Meet with an independent, HUD approved, housing counselor. Receive certificate of completion.

Application: Run credit, application.

Steps To Getting A Reverse Mortgage


Call Me For A Free Proposal

Or With Questions You Have

541-773-3131

Matt Allen MLO – 254296

Sr. Reverse Mortgage BankerThis presentation is not approved or endorsed by HUD or FHA. Credit on Approval. Terms subject to change without notice. Not a commitment to lend. Call for details.


Divorcing Seniors In Oregon

Economy & Finance