Millie* was first diagnosed with colon cancer in 1998. Six years later, she learned that she also had breast cancer and a growing tumor on her brain. 16 months after her mastectomy, doctors performed brain surgery to remove the tumor. Millie made a full recovery and, due to the insurance coverage carried by her husband, only had to pay approximately $2,000 out-of-pocket.
Sadly, only a few years after entering remission, Millie's husband passed away. Grieving the loss of her spouse, she wondered how she would survive financially in the event of another medical crisis. Not only had she lost his emotional support and companionship, but she no longer had access to the insurance coverage that had provided financial security during previous times of need.
It was then that she heard about the benefits of obtaining a reverse mortgage, a product that would allow Millie to convert part of the equity in her home into cash. Only available to those over the age of 62, reverse mortgages allow seniors to receive money from a lender based on the equity of their homes. Once the borrowers no longer occupy a residence, the money is repaid to the lender through the sale of the home. To learn more about reverse mortgages, click here.
For some, a reverse mortgage is a timely resource; for others, a reverse mortgage can produce more negative consequences than good. For this reason, federal regulation requires all reverse mortgage applicants to receive counseling from a certified, independent third party like Consumer Credit Counseling Service of Chattanooga.
Upon receiving instructions from her lender to procure counseling, Millie contacted CCCS and scheduled an appointment with Debbie Travis, certified credit counselor with 22 years of experience. During the counseling session, Debbie explained all the advantages and disadvantages of receiving a reverse mortgage. She explained the requirements, limitations, and regulations involved and made certain that Millie understood every detail of process.
Millie found that, in her circumstance, the reverse mortgage was a safe and secure resource. She saved the money she received from the reverse mortgage, so that she will have cash available to cover medical expenses in the event of a relapse. If necessary, she will have funds to cover in-home medical care rather than being forced to move into a nursing home or assisted living facility. Through the reverse mortgage, Millie has not only renewed her financial stability, but her emotional comfort has been restored as well. She no longer has to worry about whether or not she has the liquidity to afford the medical care she may need.
Debbie recalled, "My role as counselor is to help clients understand the reverse mortgage process as well as the impact it will have on their lives. Everybody's personal circumstance is different, and the reverse mortgage can sometimes be an inappropriate choice. But there are others, like Millie, who can certainly benefit from greater liquidity. It was a joy to help her complete the reverse mortgage so that she can look forward to a more stable future!"
Millie remarked, "If sharing my story could help one person to realize how a reverse mortgage could help them stay in their home, or not worry about what the next day may bring, then it will all be worthwhile."
*Names have been altered to preserve anonymity.
If you have questions about reverse mortgages or any other financial instruments, please don't hesitate to contact CCCS. Call (423) 490-5620, email CCCSreception@PartnershipFCA.com, or live chat with a certified counselor right now!