I’m 79 years old, live in New Mexico, and I’m about $35,000 in debt. I’m worried that filing for Chapter 7 bankruptcy might jeopardize my home, which is valued at over $150,000. I’m looking into reverse mortgages but need guidance on the pros and cons and whether it could help me clear my debt.
Reverse mortgages can be a good option for older homeowners. Just make sure to weigh all your options carefully.
Ellington said:
Reverse mortgages can be a good option for older homeowners. Just make sure to weigh all your options carefully.
Exactly! I think a reverse mortgage could help you tap into your home equity without moving.
@Keats
But what happens if the home value decreases over time?
Have you considered how a reverse mortgage might affect your heirs? That’s an important factor!
Reese said:
Have you considered how a reverse mortgage might affect your heirs? That’s an important factor!
That’s a good point. It’s important to discuss this with your family before making a decision.
I’m sorry to hear about your situation. Reverse mortgages can have high costs, so it’s crucial to understand the fees involved.
Remi said:
I’m sorry to hear about your situation. Reverse mortgages can have high costs, so it’s crucial to understand the fees involved.
What kind of fees should I be aware of when looking into reverse mortgages?
@Willow
Look out for origination fees, closing costs, and mortgage insurance premiums. They can add up quickly.
Consulting a financial advisor is a great idea. They can help you evaluate if a reverse mortgage is right for you.
Harley said:
Consulting a financial advisor is a great idea. They can help you evaluate if a reverse mortgage is right for you.
Yes, I definitely plan to talk to a financial expert before making any decisions.
If you go ahead with the reverse mortgage, make sure to keep up with property taxes and insurance. It’s essential!
Nova said:
If you go ahead with the reverse mortgage, make sure to keep up with property taxes and insurance. It’s essential!
I didn’t realize you still have to pay those. Thanks for the reminder!
Have you checked if there are any local programs in New Mexico that could help seniors with debt?
Shawn said:
Have you checked if there are any local programs in New Mexico that could help seniors with debt?
That’s a good suggestion. Local resources might offer options you haven’t considered.
I’ve heard that HUD-approved counselors can provide valuable information about reverse mortgages. Have you reached out to one?
Phoenix said:
I’ve heard that HUD-approved counselors can provide valuable information about reverse mortgages. Have you reached out to one?
Not yet, but I’ll definitely look into that. Thanks for the tip!
Consider all your alternatives, too! Sometimes downsizing or a home equity loan might be better.
Willow said:
Consider all your alternatives, too! Sometimes downsizing or a home equity loan might be better.
I agree. Exploring all options is key before making a big decision.