FORECLOSURE may be in your future! Please don’t sweep this idea under the carpet because what you don’t know, once again WILL hurt you. So many of you are young and so many of you are, I will not say old because I don’t want to think about that, since I am in your age bracket! Either because of divorce or because of refinancing or both, more and more women are losing their homes.
There are ads, offering middle aged and senior aged people the idea of getting reverse mortgages. People are playing into the idea that they can get equity out of their homes and use that money to do the things that they always wanted to do. NOT!!!! If the world were perfect, this might work but since the world isn’t perfect or even close, the mortgage companies are playing people like fiddles. Once a mortgage company gives you an adjustable mortgage, (ARM) you are not in control of your future.
If you lock in a rate that is OK for a few years, you might be OK, IF your finances stay the same. However, when your mortgage changes to the adjustable rate, you will keep your house ONLY if you have planned for and can pay for an additional amount of money. So before you jump into a reverse mortgage feet first, think of the worst scenario and decide if you will be able to make the mortgage payments. Plan also for illness, law suits, car accidents, health care and medical costs, to name a few. If there is even the tiniest doubt in your mind, DON’T FALL PREY to the piranhas that are ready and waiting to devour you as they take your home.
