Deborah Nance wrote an excellent article on Social Security Income and if and how it could effect your Reverse Mortgage. This is information that all Older American's as well as Realtors and Fianancial Advisors need to know.
Thank you Deborah for the great content!
PS: I miss you!
A reverse mortgage does not have to affect a client/clients on Supplemental Security Income benefits. Here’s what the Social Security Administration has to say about it on their website.
“If you enter into a valid loan agreement, the value of the cash or item you receive is not income and does not reduce your SSI benefit. However, any funds that you borrow which you do not spend in that month will count toward your SSIresource limit of $2,000 for an individual (or $3,000 for a couple) the next month.”
In my opinion, and from casual conversations with personell at Social Security and in the reverse mortgage industry, as long as you spend the loan proceeds in the month you receive them, the funds will not be counted as a resource.
I always recommend that the homeowner consult with their SSI representative at Social Security and I would caution the homeowner to only take their reverse mortgage proceeds in the form of a line of credit, monthly tenure payments, or small term payments - and to be sure that they will spend those funds in the month they are received. I also give my clients a copy of this booklet about SSI and print out the linked webpage here, for them to show to their SSI representative.
It would make perfect sense for an older homeowner on SSI to use a reverse mortgage line of credit to access funds twice a year to pay for the property taxes and once a year to pay for the homeowners insurance and occasionally for the large unexpected expenses that come up. Regular maintenace items and home improvements geared toward helping seniors to “Age In Place” would be prudent expenses to pay for with a HECM Line of Credit.Here is a link to an article from the California Advocates for Nursing Care Reform regarding reverse mortgages and SSI.Thank you for taking the time to read this article and I look forward to your comments and feedback.
Bend, Oregon: CE Credits for Realtors delivered in Oregon on the topic of Reverse Mortgage
Sharon Falvey, Vice President Northwest Sales has been effectively delivering Continuing Education Credits to Realtors accross the State of Oregon and most recently in Bend, Oregon. This class has been very well received by Realtors that thought they understood the truth about Reverse Mortgage until they took the class.
Sharon Falvey and Security One Lending were recently quoted in "Reverse Mortgage Daily" and "Reverse Fortunes" as well as other's. It brings me great joy to be able to dispel the myths about Reverse Mortgage and show Realtors how they can position themselves to use it correctly and increase their sales. We all need to make our way in these interesting times and you can never have to many tools in your belt to do so.
Dan Heater: Continuing Education Director in Bend Oregon for COAR is quoted as saying:
"Thank you Sharon so much for the great class on Reverse Mortgages you did at COAR last week. The class was very good. It is amazing that we all still have these pre-conceived ideas about what a reverse mortgage is and how it can fit into our lives as we age. All of our brokers we very impressed with the class and had all changed their minds as to the value and use of reverse mortgages both personally, and as a tool to help their customers.
The class was concise, easy to understand and gave all who attended something else to include in their presentations for their clients. I would recommend this class for anyone to take. Anyone approaching this age, with parents close to this age, or a real estate practitioner with clients of this age would gain valuable information as to how to own real estate as you approach your senior years.
And Desiree Streeter, Broker in Bend Oregon as saying:
I want to thank you so much for drawing my card for the nice briefcase. That really brightened my day! I have had some really rough times lately with caring for my mother who has been ill for the past 2 years and then my husband being in the hospital since Feb 2 and getting out tomorrow. With that and work I have definitely had a full plate!
I really enjoyed the class today. I went into it knowing nothing at all about Reverse Mortgages. It was very interesting and I gained a lot of knowledge which I will use. I will highly recommend this class to others I know when I see it posted again. I look forward to your updates!
Real Estate Broker
If you would like more informaiton as to how I can bring this to your Association or Office please do not hesitate to contact me. For more general information please visit my website or call me direct at 541-891-5706 (cell) 503-534-3546 (office). I look forward to serving your needs.
Vice President, Northwest Sales
Home Equity Specialist
My blog is a personal expression of my own thoughts, and opinions and does not necessarily reflect the thoughts and opinions of Security One Lending