Retirees Unable to Sell Their Homes and Downsize

8/06/2009

posted by N. Sioris

Stumble It!

The worst economic crisis since the Great Depression is taking its' toll everywhere you look these days. One segment of the population - retirees, are finding themselves stuck in their homes. Many, had planned to sell the "large family home" for a substantial profit and downsize to a home or community that would be more suitable for their golden years' lifestyle.

One component of the retiree's previously well thought-out plan, may have been affording to live in an assisted living community or having in-home-care assistance. For many, those things are now simply unaffordable and unobtainable. Home values have declined across the country, and in some areas drastically declined, (i.e. Florida, California, Nevada, Arizona, Michigan, Ohio.)

Seniors are not able to sell their homes for anywhere near the values that their homes were just a year or two ago. Furthermore, if they are willing to list their homes at drastically reduced prices, many are still not selling or even receiving any offers. Consequently, many senior citizens are trapped in their homes. They are not able to access their home equity through a sale, and the sale if it did take place, would yield far less profit to feather their retirement nest egg than they had planned.

One thing that a senior homeowner can do is, get a reverse mortgage. A reverse mortgage home loan allows seniors, 62 years or older to tap into the equity that still remains in their homes, without ever having to make any monthly mortgage payments for as long as they live in the home. The money they get from a reverse mortgage can be used for whatever purpose they choose. So, if in-home-care is a priority, then at least through this financial tool they might be able to afford it.

Find out if you still have enough equity left for a reverse mortgage loan.

Or use our reverse mortgage calculator.