Keller WIlliams Luxury Logo
Home » Using a reverse mortgage for a divorce

Using a reverse mortgage for a divorce

by | Feb 9, 2012 | Blog | 0 comments

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.

Recent Posts

October Real Estate Sales Stats for The Big Island of  Hawaii

October Real Estate Sales Stats for The Big Island of Hawaii

There was a sprinkling of Real Estate sales in the Resorts in October. Two home sales and one condominium sale closed Hualālai Resort. Waikoloa Beach Resort and Mauna Lani Resort each recorded three condominium sales; there was one condominium sale in Mauna Kea Resort...

read more
Three Reasons Not to Hire Me

Three Reasons Not to Hire Me

Seems like a strange title, doesn’t it? I’ve been studying consumers and more specifically real estate consumers for almost 20 years. Over that time, I think I really have been able to dial in on what consumers want and what consumers need. I also think that’s been a...

read more
December Featured Restaurant & Activity

December Featured Restaurant & Activity

Featured Activity: Dive with the Mantas Dive enthusiasts and those who love ocean adventures can’t say enough about the opportunity in Kona to swim with the Manta Rays. Getting in the water after dark is adventurous enough, but to view and be close to these gentle,...

read more
Featured Restaurant & Activity for November

Featured Restaurant & Activity for November

Featured Activity - Walking tour of Kailua-KonaKailua Pier, every Wednesday at 9:30am History buffs will want to take this walking tour of Kailua-Kona and learn about the many historical places in this seaside village. The tours are led by Pelena Keeling, a lifelong...

read more
“What Am I Paying For?”

“What Am I Paying For?”

These days, with all the discussions about commissions in the news, the new real estate rules, etc. every consumer is asking themselves the same question, which is, “what am I paying for?” I think it’s an excellent question and a question every real estate agent...

read more

Recent Listings

Call Now