• CHIP Reverse MortgageCHIP Reverse Mortgage: How We Helped This Pensioner And Her Son (And It Feels Great)

    Mrs. Amanda Smith (not her real name) came to see me with a problem. She was 83 and she lived with her son who had a disability and was receiving only approximately $1000/mth. She currently had a line of credit which had reached its limit at $50,000. Remember with a line of credit, you MUST make minimum payments, like a credit card. The home needed repairs and with her son’s medicine, they required another $75,000 so here is where the conundrum came up. What if Amanda dies before her son? The son does not have enough money income to pay out the mortgage, qualify for the payments or assume the mortgage. The other issue is that they have no other heirs. What solution did we find them? A CHIP Reverse Mortgage!

    We set up a CHIP Reverse Mortgage in both the mom AND the son’s name. This is allowed if they both live in the home.

    This CHIP Reverse Mortgage solved 3 issues:

    1. It gave them the funds to live with dignity today.
    2. They get to remain in their own home, which is what they truly want.
    3. It allows them to stay in the house and not have the financial concerns if one party should pass away.

    In this case a CHIP Reverse Mortgage was ideal because Mrs. Smith and her son didn’t have the cash flow to make payments and ideally wanted to use the equity in their home. The amount that they would borrow from the CHIP Reverse Mortgage would not need to be paid back as long as they lived in the home and/or until they sold it.

    Did we help Mrs. Smith? Yes – but honestly I felt great that we could help. Sometimes your job can give you amazing satisfaction.

    Robert Floris of Mortgage Architects will be happy to provide an honest, no obligation consultation to explore if Reverse Mortgages is right for you!

    Robert Floris is a Mortgage Broker. His office is located at 651 Fennell Avenue East in Hamilton, Ontario. If you would like to speak with Robert, he can be reached at 905-574-9200 #215.

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