An unfortunate trend that we are seeing is mature couples getting a divorce. Sometimes the remaining spouse takes out a new mortgage to payoff the departing spouse for their equity or agrees to make the monthly payments. The problem is that many mature people do not have the necessary income, etc. to obtain a new mortgage or the ability to live comfortably after they make the mortgage payment. When you consider selling in a down market, costs associated with selling and moving, etc, a Home Equity Conversion Mortgage (HECM) could be a good option.
A HECM is usually utilized as a refinance option to help people, over 62, who have substantial equity in their home live better. More commonly known as a reverse mortgage, it may also be the best option for a couple that is divorcing. The remaining spouse keeps the home and will only have to pay property taxes and hazard insurance. The departing spouse can receive cash for their equity to help them get a fresh start and not be encumbered with a mortgage payment for a property they no longer occupy.
All in all, this a win-win option for people in a sad situation. As always, your mortgage professional should take the time to see what mortgage option is best for your unique personal situation.
Chip Allen
Crestline Mortgage Bankers
A Division of Universal Lending Corp
Direct: 303.947.2109
Fax: 303.987.0676
Loanchip@hotmail.com
Colorado Mortgage Broker License # 100019831
NMLS# 378621
Your Lender for Life!
When people you care about need a mortgage,
for purchase or refinance, please do not keep me a secret.
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