1 00:00:00,200 --> 00:00:03,240 Speaker 1: Now adjust the volume control so that the sound can 2 00:00:03,320 --> 00:00:07,840 Speaker 1: be heard in all parts of the room. 3 00:00:08,440 --> 00:00:11,320 Speaker 2: This is to Protect your Assets podcast. 4 00:00:12,720 --> 00:00:15,760 Speaker 1: You get the idea on the internet. 5 00:00:15,880 --> 00:00:17,759 Speaker 2: Make him the cutest. 6 00:00:18,239 --> 00:00:19,159 Speaker 3: Seen go on. 7 00:00:21,400 --> 00:00:28,680 Speaker 1: It's like no cheese I've ever taste it. So you're 8 00:00:28,720 --> 00:00:31,000 Speaker 1: concerned about how you're going to be able to stay 9 00:00:31,040 --> 00:00:33,760 Speaker 1: in your home if you start to run out of 10 00:00:33,800 --> 00:00:35,920 Speaker 1: money and things get more expensive. You've got all that 11 00:00:35,960 --> 00:00:38,320 Speaker 1: equity in the ground, but how do you get it 12 00:00:38,320 --> 00:00:42,120 Speaker 1: out and stay in your house. Well, reverse mortgages are controversial, 13 00:00:42,640 --> 00:00:45,680 Speaker 1: they are also something that could help you, and so 14 00:00:45,760 --> 00:00:49,080 Speaker 1: I thought i'd get somebody in the studio today to 15 00:00:49,159 --> 00:00:53,880 Speaker 1: talk about reverse mortgages. Good morning, Welcome to Protect your Assets. 16 00:00:54,080 --> 00:00:57,560 Speaker 1: I am David Hollander, your hosts. For those of you 17 00:00:57,640 --> 00:01:02,080 Speaker 1: just joining us for the first time, Welcome people around here, 18 00:01:02,160 --> 00:01:05,480 Speaker 1: they call me the Sandman. So this morning we're going 19 00:01:05,560 --> 00:01:09,560 Speaker 1: to be broadcasting and talking to our friend Chris Freck, 20 00:01:09,600 --> 00:01:12,440 Speaker 1: who is a reverse mortgage specialist. He's been doing this 21 00:01:12,480 --> 00:01:15,399 Speaker 1: for over eighteen years. We'll be talking about reverse mortgages 22 00:01:15,480 --> 00:01:18,400 Speaker 1: more today and how they might help you stay in 23 00:01:18,480 --> 00:01:21,240 Speaker 1: your home or if something were to happen, how would 24 00:01:21,280 --> 00:01:24,640 Speaker 1: you use it? How are they charged, what are the fees, 25 00:01:25,400 --> 00:01:26,759 Speaker 1: what are the taxes involved? 26 00:01:26,800 --> 00:01:27,640 Speaker 4: What does it look like. 27 00:01:28,240 --> 00:01:31,440 Speaker 1: It's going to be a great show, So stick around. 28 00:01:33,760 --> 00:01:37,920 Speaker 2: Times are changing, some would say they've already changed. And 29 00:01:38,000 --> 00:01:42,120 Speaker 2: how do you actually protect your assets? David Hollanders Protect 30 00:01:42,160 --> 00:01:46,240 Speaker 2: your Assets events focus on common financial concerns that individuals 31 00:01:46,240 --> 00:01:49,240 Speaker 2: and families face in retirement, things like how to prepare 32 00:01:49,280 --> 00:01:52,960 Speaker 2: for unexpected medical expenses and ways to create income to 33 00:01:52,960 --> 00:01:56,440 Speaker 2: help support your desired lifestyle. Join us at our next 34 00:01:56,480 --> 00:01:59,560 Speaker 2: free event to learn how addressing these concerns can help 35 00:01:59,600 --> 00:02:02,440 Speaker 2: you feel more confident about the days ahead and help 36 00:02:02,480 --> 00:02:05,840 Speaker 2: you sleep better at night. Just go to pyaevents dot 37 00:02:05,840 --> 00:02:10,320 Speaker 2: com and reserve your seat today. That's pyaevents dot com 38 00:02:10,360 --> 00:02:14,160 Speaker 2: and sign up or join the wait list today Pyaevents 39 00:02:14,400 --> 00:02:17,919 Speaker 2: dot Com. Now back to Protect your Assets with David 40 00:02:17,960 --> 00:02:19,120 Speaker 2: Hollander the Sandman. 41 00:02:19,720 --> 00:02:21,920 Speaker 1: So today we are going to be talking about a 42 00:02:22,000 --> 00:02:24,440 Speaker 1: question that came up recently. We had a client who 43 00:02:25,600 --> 00:02:29,840 Speaker 1: wanted to stay in their home. They were a certain age, 44 00:02:29,880 --> 00:02:31,800 Speaker 1: had a certain amount of money, and wanted to know 45 00:02:31,880 --> 00:02:35,720 Speaker 1: if they could get to the equity in their real 46 00:02:35,880 --> 00:02:38,680 Speaker 1: estate without having to sell the house or move out 47 00:02:38,680 --> 00:02:42,560 Speaker 1: of the house. If they lived amount of years, they 48 00:02:42,600 --> 00:02:44,520 Speaker 1: just couldn't, you know, have a crystal ball and figure 49 00:02:44,520 --> 00:02:45,720 Speaker 1: that out. So they just wanted to know if this 50 00:02:45,800 --> 00:02:49,120 Speaker 1: is another asset that they could use, and how that 51 00:02:49,200 --> 00:02:51,280 Speaker 1: might cost them and what that might look like. 52 00:02:51,960 --> 00:02:52,880 Speaker 4: And so my. 53 00:02:52,880 --> 00:02:56,720 Speaker 1: Guest today is Chris Freck. Chris, thanks for being here 54 00:02:56,720 --> 00:02:58,320 Speaker 1: today and I'm happy to see you. I'm glad you 55 00:02:58,320 --> 00:03:00,839 Speaker 1: can come down yet you're welcome. Tell us a little 56 00:03:00,840 --> 00:03:01,600 Speaker 1: bit about yourself. 57 00:03:01,680 --> 00:03:04,160 Speaker 3: I'm Chris Frek with Eastar Mortgage in East Star Reverse 58 00:03:04,200 --> 00:03:07,120 Speaker 3: and based out of Alameda, California. I've been doing reverse 59 00:03:07,120 --> 00:03:10,680 Speaker 3: mortgages since two thousand and seven, helped dozens and dozens 60 00:03:10,680 --> 00:03:13,680 Speaker 3: of folks over the years. And we'd start with an 61 00:03:14,520 --> 00:03:19,839 Speaker 3: education section where we do discovery and find what the 62 00:03:19,880 --> 00:03:22,480 Speaker 3: goals are of the family and include the loved ones 63 00:03:22,480 --> 00:03:25,320 Speaker 3: and the decision making process all the way up to 64 00:03:25,440 --> 00:03:30,680 Speaker 3: and including the required mortgage counseling that's required nationwide. And 65 00:03:30,919 --> 00:03:33,680 Speaker 3: we love to educate and help folks come to the 66 00:03:33,720 --> 00:03:37,200 Speaker 3: right conclusion, even if that is to have the family 67 00:03:37,280 --> 00:03:40,160 Speaker 3: help solve the challenges that the seniors are having and 68 00:03:40,440 --> 00:03:41,200 Speaker 3: staying in their home. 69 00:03:41,240 --> 00:03:43,200 Speaker 4: If that's the goal, how long have you been doing 70 00:03:43,280 --> 00:03:44,160 Speaker 4: reverse mortgages. 71 00:03:44,440 --> 00:03:46,600 Speaker 3: I started a reverse mortgage in two thousand and eight 72 00:03:47,080 --> 00:03:50,320 Speaker 3: here on Clay Street in Oakland. Was that at a 73 00:03:50,360 --> 00:03:53,400 Speaker 3: bank or where I spent about eight months a countrywide 74 00:03:53,400 --> 00:03:55,800 Speaker 3: before Bank of America Bottom. I didn't want to be there, 75 00:03:55,840 --> 00:03:58,000 Speaker 3: and I definitely didn't want to stay with a big bank. 76 00:03:58,040 --> 00:03:59,400 Speaker 3: I'm an independent guy. 77 00:04:00,200 --> 00:04:03,480 Speaker 1: Back to then, how has the reverse mortgage market changed 78 00:04:03,560 --> 00:04:05,560 Speaker 1: from two thousand and eight nine to now? 79 00:04:06,160 --> 00:04:09,240 Speaker 3: So the reverse mortgages started in the first one was 80 00:04:09,240 --> 00:04:13,760 Speaker 3: in the sixties for a widow in the northeast, and 81 00:04:13,800 --> 00:04:18,280 Speaker 3: then Reagan passed it into law on February fifth, at eight, 82 00:04:18,400 --> 00:04:21,000 Speaker 3: nineteen eighty eight, and so since then there were a 83 00:04:21,040 --> 00:04:24,360 Speaker 3: lot of unintended consequences and you hear about Grandma lost 84 00:04:24,360 --> 00:04:27,280 Speaker 3: their house or whatever. The consumer protections that have been 85 00:04:27,279 --> 00:04:30,520 Speaker 3: put in in the last ten years have changed it entirely. 86 00:04:30,720 --> 00:04:33,240 Speaker 1: And is it a federally regulated market or is it 87 00:04:33,320 --> 00:04:34,120 Speaker 1: state specific? 88 00:04:34,279 --> 00:04:39,480 Speaker 3: Yeah, there's both. Just like you see state specific regulations 89 00:04:39,480 --> 00:04:43,120 Speaker 3: for real estate and mortgage in California, there's other states 90 00:04:43,120 --> 00:04:48,600 Speaker 3: that will regulated differently, Like Massachusetts was still still requiring 91 00:04:48,640 --> 00:04:52,520 Speaker 3: in person counseling like six months ago. Interesting, it's all 92 00:04:52,560 --> 00:04:53,039 Speaker 3: over the place. 93 00:04:53,080 --> 00:04:56,800 Speaker 4: All right, Well, why don't we back up. Let's start 94 00:04:56,800 --> 00:04:58,920 Speaker 4: out with what is a reverse mortgage? 95 00:04:59,200 --> 00:05:02,440 Speaker 3: So reverse mortga just a way to access equity in 96 00:05:02,560 --> 00:05:05,360 Speaker 3: someone's home without having to make a payment, but they're 97 00:05:05,400 --> 00:05:08,760 Speaker 3: allowed to make a payment, and it's all based on 98 00:05:08,800 --> 00:05:14,159 Speaker 3: their age and the praise value or the maximum amount 99 00:05:14,160 --> 00:05:16,599 Speaker 3: that FAHA allows in a county anywhere in the US. 100 00:05:16,960 --> 00:05:18,240 Speaker 4: And how much is that amount? 101 00:05:18,279 --> 00:05:21,839 Speaker 3: Now, it's one point two four nine five hundred. 102 00:05:21,880 --> 00:05:23,760 Speaker 4: I believe that's how much you could actually borrow. 103 00:05:23,960 --> 00:05:28,560 Speaker 3: That's where the math starts. And then the age factor 104 00:05:28,960 --> 00:05:32,719 Speaker 3: is called a principal limit factor that based on your age, 105 00:05:33,040 --> 00:05:35,240 Speaker 3: have to be at least sixty two for the FHA product. 106 00:05:35,920 --> 00:05:38,599 Speaker 3: And then based on your age, they do the math 107 00:05:38,680 --> 00:05:42,080 Speaker 3: on either the lower of the praise value or that 108 00:05:42,560 --> 00:05:43,159 Speaker 3: county limit. 109 00:05:43,440 --> 00:05:48,120 Speaker 1: Okay, And would sixty two be the youngest person that 110 00:05:48,120 --> 00:05:49,440 Speaker 1: could get a reverse mortgage? 111 00:05:49,520 --> 00:05:52,360 Speaker 3: So if you're married to someone younger, the math will 112 00:05:52,360 --> 00:05:54,719 Speaker 3: be done on the younger person's age. But if you're married, 113 00:05:54,800 --> 00:05:56,760 Speaker 3: you can get a reverse mortgage with a nineteen year 114 00:05:56,760 --> 00:05:57,760 Speaker 3: old wife or husband. 115 00:05:57,880 --> 00:05:59,960 Speaker 4: Is that right? Okay? That's interesting. 116 00:06:01,000 --> 00:06:03,919 Speaker 3: Don't see it happen often, but it happens. It's in 117 00:06:03,960 --> 00:06:04,280 Speaker 3: the book. 118 00:06:04,360 --> 00:06:05,479 Speaker 4: It is in the book. 119 00:06:05,520 --> 00:06:10,479 Speaker 1: I've read some cases, So tell me about the younger. 120 00:06:10,800 --> 00:06:13,640 Speaker 1: Does it help to have a younger spouse in terms 121 00:06:13,680 --> 00:06:15,440 Speaker 1: of the income that you could receive off of this? 122 00:06:16,600 --> 00:06:18,359 Speaker 3: The math works in a reverse, so it's based on 123 00:06:18,400 --> 00:06:22,919 Speaker 3: life expectancy, and men and women have slightly different life expectancies, 124 00:06:23,240 --> 00:06:26,360 Speaker 3: but they go off the younger borrower, and it reduces 125 00:06:26,440 --> 00:06:29,880 Speaker 3: the what's that you have access to because if they 126 00:06:29,960 --> 00:06:33,760 Speaker 3: choose not to make a payment, then the mortgage insurance 127 00:06:33,760 --> 00:06:38,760 Speaker 3: fund for FAHA products has to be available some unknown 128 00:06:38,839 --> 00:06:42,960 Speaker 3: time in the future. The amortization table runs out to 129 00:06:43,160 --> 00:06:46,200 Speaker 3: a year ninety nine or one hundred years old, but 130 00:06:46,440 --> 00:06:50,840 Speaker 3: people live longer than that, so the insurance fund has 131 00:06:50,880 --> 00:06:54,200 Speaker 3: to protect itself. And that's what they've done is reduce 132 00:06:54,240 --> 00:06:58,640 Speaker 3: what they give now so that both the consumer and 133 00:06:58,880 --> 00:07:01,640 Speaker 3: the fund don't end up having a claim in the end. 134 00:07:02,080 --> 00:07:07,200 Speaker 4: Okay, so we got your home's value. 135 00:07:07,360 --> 00:07:09,600 Speaker 1: That's important, right to have equity in the home to 136 00:07:09,880 --> 00:07:12,040 Speaker 1: be able to do something like this. Your age, we've 137 00:07:12,080 --> 00:07:13,960 Speaker 1: said you must be at least age sixty. 138 00:07:13,680 --> 00:07:15,120 Speaker 4: Two, yep. 139 00:07:15,920 --> 00:07:19,920 Speaker 1: And you also have to have a fair amount of 140 00:07:19,920 --> 00:07:21,720 Speaker 1: equity in your home. I would imagine how how is 141 00:07:21,760 --> 00:07:22,400 Speaker 1: that determined? 142 00:07:22,440 --> 00:07:27,200 Speaker 4: How do you distinguish that whether someone could do that 143 00:07:27,320 --> 00:07:27,520 Speaker 4: or not. 144 00:07:27,680 --> 00:07:31,080 Speaker 3: There's principal limit factor tables that are out there. Again, 145 00:07:31,120 --> 00:07:35,600 Speaker 3: it's based on the life expectancy. So what I tell 146 00:07:35,640 --> 00:07:38,120 Speaker 3: people is typically if you're in your sixties, you can 147 00:07:38,160 --> 00:07:41,520 Speaker 3: expect to get about access to about thirty percent of 148 00:07:41,560 --> 00:07:45,680 Speaker 3: the total value. And if you're in your seventies or eighties, 149 00:07:45,680 --> 00:07:49,400 Speaker 3: then the math goes up because they've cut those principal 150 00:07:49,800 --> 00:07:53,000 Speaker 3: limit factors to protect the fund. It used to be 151 00:07:53,040 --> 00:07:55,960 Speaker 3: you could go to sixty sixty five percent, Now it's 152 00:07:56,440 --> 00:08:00,440 Speaker 3: kind of in the eighties. Is probably close to fifty percent. 153 00:08:00,480 --> 00:08:03,040 Speaker 3: I did alone for a lady who's ninety seven, and 154 00:08:03,280 --> 00:08:05,760 Speaker 3: it was it was close to sixty. 155 00:08:05,960 --> 00:08:08,560 Speaker 1: Okay, so what about I'm going to use some sample 156 00:08:08,600 --> 00:08:11,920 Speaker 1: people we'll talk about today. Sure, I'm going to talk 157 00:08:11,920 --> 00:08:15,120 Speaker 1: about a fellow named Peter and his wife Helen. Okay, 158 00:08:15,160 --> 00:08:19,120 Speaker 1: Peter and Helen. Peter is seventy two and Helen's sixty. 159 00:08:19,400 --> 00:08:21,640 Speaker 3: You said they're married or are they just they're not 160 00:08:21,760 --> 00:08:23,640 Speaker 3: Maferican others they're they're not married. 161 00:08:23,640 --> 00:08:28,320 Speaker 1: They're living together, they're not married, and they have a 162 00:08:28,320 --> 00:08:29,720 Speaker 1: homeworth about one point. 163 00:08:29,480 --> 00:08:31,240 Speaker 3: Three okay, And how much do they owe? 164 00:08:31,840 --> 00:08:32,480 Speaker 4: Great question? 165 00:08:33,040 --> 00:08:37,320 Speaker 1: Okay, they have a first mortgage that's fixed. We had 166 00:08:37,360 --> 00:08:40,640 Speaker 1: two point eight percent thirty year fixed outstanding with five 167 00:08:40,720 --> 00:08:43,920 Speaker 1: hundred and forty thousand they owe. Okay, They've got a 168 00:08:44,160 --> 00:08:48,320 Speaker 1: second mortgage at a nine percent rate that they are 169 00:08:48,320 --> 00:08:49,760 Speaker 1: about one hundred and seventy thousand. 170 00:08:50,360 --> 00:08:56,080 Speaker 3: Okay. So I have a software that will help me 171 00:08:56,160 --> 00:08:59,400 Speaker 3: model what their options are. I would tell you that 172 00:08:59,400 --> 00:09:04,040 Speaker 3: they're probably age seventy two. Is who's on the loan? 173 00:09:04,040 --> 00:09:05,640 Speaker 3: Are they both on the loan or it's just him? 174 00:09:06,120 --> 00:09:07,240 Speaker 4: I believe it's just Peter. 175 00:09:07,840 --> 00:09:11,000 Speaker 3: Okay, and that makes sense. So are they both entitle 176 00:09:11,120 --> 00:09:13,480 Speaker 3: or just the it's just Peter at this point, okay, 177 00:09:13,520 --> 00:09:18,120 Speaker 3: all right, So then the good thing is he would 178 00:09:18,160 --> 00:09:22,280 Speaker 3: get access to more the age of seventy two with 179 00:09:22,360 --> 00:09:25,000 Speaker 3: the principal womit factor. We plug that in and it's 180 00:09:25,040 --> 00:09:29,080 Speaker 3: going to come back at something around forty five percent 181 00:09:29,200 --> 00:09:33,000 Speaker 3: of the value. One point three is very close to 182 00:09:33,040 --> 00:09:37,280 Speaker 3: the FAHA limit. Above that, there's private label products that 183 00:09:37,320 --> 00:09:41,359 Speaker 3: allow for five six million dollars valuations, and then they 184 00:09:41,440 --> 00:09:43,760 Speaker 3: self insure, so they self insured by having higher interest 185 00:09:43,840 --> 00:09:47,200 Speaker 3: rates on the reverse mortgage. But to stick with FHA, 186 00:09:47,960 --> 00:09:51,880 Speaker 3: he's going to probably at that age potentially have to 187 00:09:51,880 --> 00:09:55,200 Speaker 3: bring in some money and I can. I don't do 188 00:09:55,480 --> 00:09:57,959 Speaker 3: anything on the back of the napkin. I plugged the 189 00:09:58,000 --> 00:09:59,960 Speaker 3: numbers in a spreadsheet and software. Want to do it right, 190 00:10:00,240 --> 00:10:03,719 Speaker 3: and I'm happy to do that for you. But the 191 00:10:04,200 --> 00:10:08,520 Speaker 3: answer is it's borderline. It's not it's not a for 192 00:10:08,600 --> 00:10:11,679 Speaker 3: sure thing. Now does she want to if he was 193 00:10:11,720 --> 00:10:14,200 Speaker 3: to pass, then does she want to stay in the home. 194 00:10:14,440 --> 00:10:16,480 Speaker 4: We're going to come back to them, Okay, I want to. 195 00:10:16,760 --> 00:10:17,160 Speaker 4: I want to. 196 00:10:17,320 --> 00:10:19,920 Speaker 1: Let's move on just about the product and how it 197 00:10:19,960 --> 00:10:23,160 Speaker 1: works and things like that, and we'll come back to them. Certainly, 198 00:10:23,200 --> 00:10:27,440 Speaker 1: I want to explore that case. It's an interesting one, 199 00:10:27,679 --> 00:10:30,400 Speaker 1: but for purposes that begin back to the product. Just 200 00:10:30,440 --> 00:10:33,240 Speaker 1: sort of trying to lay some groundwork so people out 201 00:10:33,240 --> 00:10:37,679 Speaker 1: there can understand how this works. So again, they need 202 00:10:37,679 --> 00:10:39,800 Speaker 1: to have equity in their home. They need to be 203 00:10:39,800 --> 00:10:44,040 Speaker 1: at least sixty two years or older. They should have 204 00:10:44,320 --> 00:10:47,720 Speaker 1: a value that justifies even thinking about this and the 205 00:10:47,760 --> 00:10:50,319 Speaker 1: home we're talking about. We're in the Bay Area, you know, 206 00:10:50,400 --> 00:10:53,000 Speaker 1: most homes in this area have value of some kind. 207 00:10:53,080 --> 00:10:55,360 Speaker 4: Sure, it's a pretty pretty good Uh. 208 00:10:55,400 --> 00:10:58,520 Speaker 3: A lot of them are attached to those low interest rates, 209 00:10:58,520 --> 00:11:00,840 Speaker 3: like you were talking about through the good rates. 210 00:11:00,880 --> 00:11:01,160 Speaker 4: Yeah. 211 00:11:01,240 --> 00:11:04,760 Speaker 3: Sure, So you have to look at the whole picture. 212 00:11:04,800 --> 00:11:08,280 Speaker 3: And I partner with financial planners like you to help 213 00:11:08,559 --> 00:11:11,280 Speaker 3: people look at how do we extend the longevity of 214 00:11:11,320 --> 00:11:16,640 Speaker 3: the assets and using a standby line of credit on 215 00:11:16,720 --> 00:11:20,600 Speaker 3: the FAHA adjustable rate product. There, I can go through 216 00:11:20,600 --> 00:11:21,520 Speaker 3: the product if you'd like. 217 00:11:21,559 --> 00:11:22,080 Speaker 4: It's okay. 218 00:11:22,200 --> 00:11:24,959 Speaker 3: So the fixed rate product is just a one and done. 219 00:11:25,360 --> 00:11:27,200 Speaker 3: Whatever cash you want, that's what you get. 220 00:11:27,240 --> 00:11:29,079 Speaker 1: All right, let's get so Yeah, let's so, let's get 221 00:11:29,120 --> 00:11:31,720 Speaker 1: so before we go down that road, because I do 222 00:11:31,760 --> 00:11:35,960 Speaker 1: want to talk about that, let's talk about you go 223 00:11:35,960 --> 00:11:37,920 Speaker 1: ahead and get a reverse mortgage. We're gonna talk about 224 00:11:37,920 --> 00:11:39,920 Speaker 1: the types here in a second. But you get a 225 00:11:39,920 --> 00:11:43,360 Speaker 1: reverse mortgage. What sort of payments do you have to 226 00:11:43,360 --> 00:11:46,600 Speaker 1: make on the loan? If any? Is there any requirement 227 00:11:46,640 --> 00:11:47,800 Speaker 1: to make any payment on the loan? 228 00:11:49,040 --> 00:11:52,240 Speaker 3: Only optional? On the mortgage, you have to maintain the 229 00:11:52,280 --> 00:11:55,640 Speaker 3: property charges, which are the property taxes HOA. 230 00:11:56,400 --> 00:11:58,480 Speaker 1: So anything that's like a main ins item or an 231 00:11:58,640 --> 00:12:02,160 Speaker 1: HOA property taxes for. 232 00:12:02,120 --> 00:12:06,400 Speaker 3: Those you have to pages like normal and a lot 233 00:12:06,440 --> 00:12:08,920 Speaker 3: of Folks at that age may have an impound account 234 00:12:09,559 --> 00:12:12,439 Speaker 3: and impound accounts. When you factor in, it's not called 235 00:12:12,440 --> 00:12:16,360 Speaker 3: an impound account. It's a life expectancy set aside. Okay, 236 00:12:16,400 --> 00:12:19,360 Speaker 3: so what does that mean we're going to grab the 237 00:12:19,400 --> 00:12:22,120 Speaker 3: next twenty years or whatever the life expectancy is of 238 00:12:22,200 --> 00:12:27,880 Speaker 3: property taxes do a reduction based on being the interest 239 00:12:28,000 --> 00:12:29,760 Speaker 3: to a cruise on it, so you get to set a 240 00:12:29,800 --> 00:12:32,720 Speaker 3: little bit less aside. But when you pull twenty years 241 00:12:32,720 --> 00:12:36,160 Speaker 3: of property taxes out of what equity you have access to, 242 00:12:36,600 --> 00:12:39,720 Speaker 3: people say no, thank you, unless they've not made their 243 00:12:39,760 --> 00:12:44,240 Speaker 3: property tax bill paid on time. There's a financial assessment 244 00:12:44,280 --> 00:12:47,680 Speaker 3: that's done to establish whether they've got the wherewithal to 245 00:12:48,160 --> 00:12:52,640 Speaker 3: handle it themselves, and if not, then they'll force expectancy 246 00:12:52,640 --> 00:12:54,800 Speaker 3: set aside. So people that are used to an impound 247 00:12:54,800 --> 00:12:57,880 Speaker 3: account go, oh, that's what I want until they see 248 00:12:57,920 --> 00:13:01,040 Speaker 3: the math of what happens to just set aside twenty 249 00:13:01,120 --> 00:13:04,720 Speaker 3: years of property taxes with a little bit of adjustment factor, 250 00:13:04,760 --> 00:13:07,240 Speaker 3: and you're like, well, where all my money go? It's 251 00:13:07,280 --> 00:13:09,679 Speaker 3: all set aside, so you wouldn't have to pay your 252 00:13:09,679 --> 00:13:12,360 Speaker 3: tax bill, but you don't have access to the money now, 253 00:13:12,480 --> 00:13:12,840 Speaker 3: got it? 254 00:13:12,920 --> 00:13:13,280 Speaker 4: Okay. 255 00:13:13,559 --> 00:13:15,640 Speaker 3: In the end, when you talk to a good financial planner, 256 00:13:15,640 --> 00:13:18,560 Speaker 3: they're like, don't do that. So unless it's required, people 257 00:13:18,600 --> 00:13:21,400 Speaker 3: don't end up doing their life expectancy set aside. So 258 00:13:21,440 --> 00:13:25,480 Speaker 3: they have to adjust mentally to paying those bills themselves, 259 00:13:26,240 --> 00:13:27,719 Speaker 3: which or have somebody help them manage it. 260 00:13:27,840 --> 00:13:30,200 Speaker 1: Yeah, so I think again, I think where I've seen 261 00:13:30,200 --> 00:13:36,000 Speaker 1: this product use successfully is where the person wants to 262 00:13:36,000 --> 00:13:39,280 Speaker 1: stay in their home. They have income and some assets 263 00:13:39,280 --> 00:13:41,520 Speaker 1: that can afford to pay things like the property taxes, 264 00:13:41,520 --> 00:13:46,280 Speaker 1: the insurance, any sort of maintenance repairs, things that come 265 00:13:46,360 --> 00:13:49,960 Speaker 1: up like that, but they use this more as an 266 00:13:50,000 --> 00:13:54,720 Speaker 1: income supplement to give them a little more monthly income. 267 00:13:55,160 --> 00:13:56,760 Speaker 1: That's where I've seen this use quite a bit. 268 00:13:56,920 --> 00:13:58,920 Speaker 4: Is that you see it or. 269 00:13:59,240 --> 00:14:02,320 Speaker 3: I thought that I would see that. In the cases 270 00:14:02,640 --> 00:14:05,760 Speaker 3: that I've run across, it's actually fairly rare that they 271 00:14:05,960 --> 00:14:09,360 Speaker 3: do take a monthly payment. I just met with a 272 00:14:09,360 --> 00:14:12,680 Speaker 3: client in Carmel this morning and they're going to take 273 00:14:12,679 --> 00:14:14,679 Speaker 3: a monthly payment, but he's also going to get a 274 00:14:14,760 --> 00:14:16,920 Speaker 3: lump sum upfront, and he's also going to leave a 275 00:14:16,960 --> 00:14:19,280 Speaker 3: standby line of credit on the side as well. Wow, 276 00:14:19,440 --> 00:14:21,560 Speaker 3: he's got a free and clear property. So he's got 277 00:14:21,640 --> 00:14:23,520 Speaker 3: a lot more options, sure, but. 278 00:14:23,720 --> 00:14:25,320 Speaker 4: And probably probably worth a lot of money. 279 00:14:25,520 --> 00:14:29,880 Speaker 3: It's a nice house. But anyway, he was heating his 280 00:14:29,960 --> 00:14:35,000 Speaker 3: home with his fireplace. No. And the only place you 281 00:14:35,000 --> 00:14:37,400 Speaker 3: can get an FHA a loan in the United States 282 00:14:37,800 --> 00:14:43,760 Speaker 3: doing that is either South Florida, Hawaii or if you've 283 00:14:43,800 --> 00:14:47,000 Speaker 3: got a cabin in Strawberry and everybody else, all the 284 00:14:47,040 --> 00:14:49,840 Speaker 3: comparable sales around you also do the same thing. Yeah, 285 00:14:50,000 --> 00:14:51,280 Speaker 3: that's not how it is in Carmel. 286 00:14:51,680 --> 00:14:54,200 Speaker 4: So interesting, you have to. 287 00:14:54,400 --> 00:14:58,600 Speaker 3: So we had to help him put the fire the 288 00:14:58,920 --> 00:15:02,520 Speaker 3: hvac in, get that done, get a contractor to help 289 00:15:02,560 --> 00:15:05,040 Speaker 3: them get that done before we could even proceed with 290 00:15:05,080 --> 00:15:08,640 Speaker 3: an appraisal, because otherwise the appraisal comes out and says 291 00:15:09,240 --> 00:15:13,600 Speaker 3: we have a subject too, we need a heat source, 292 00:15:14,360 --> 00:15:15,960 Speaker 3: and you don't want to spend the money to have 293 00:15:16,000 --> 00:15:18,880 Speaker 3: the appraiser come back out to inspect to prove that 294 00:15:18,920 --> 00:15:21,360 Speaker 3: it's there. Sure, trip diesel tear you up. 295 00:15:21,440 --> 00:15:22,080 Speaker 4: That's interesting. 296 00:15:22,720 --> 00:15:25,200 Speaker 1: Now, what's this thing called mortgage insurance premium? You were 297 00:15:25,200 --> 00:15:26,480 Speaker 1: talking about mortgage insurance and. 298 00:15:26,480 --> 00:15:29,360 Speaker 3: You got to pay a premium, right, So some people 299 00:15:29,400 --> 00:15:31,880 Speaker 3: say it's the cheapest insurance you could buy. If you 300 00:15:31,920 --> 00:15:34,480 Speaker 3: think about it. If you are not going to be 301 00:15:34,480 --> 00:15:37,120 Speaker 3: required to make a mortgage payment again, you can make 302 00:15:37,160 --> 00:15:40,480 Speaker 3: one optionally not required to make one again. And if 303 00:15:40,520 --> 00:15:46,000 Speaker 3: you outlive the expected path and you end up with 304 00:15:46,120 --> 00:15:51,880 Speaker 3: a negative equity, then there is no recourse. It's a 305 00:15:51,920 --> 00:15:55,360 Speaker 3: non recourse loan. The errors can still buy the property 306 00:15:55,760 --> 00:15:58,720 Speaker 3: for ninety five percent of the appraise value, So no 307 00:15:58,760 --> 00:16:03,960 Speaker 3: matter what's owed the estate, the rest of the assets 308 00:16:04,280 --> 00:16:07,000 Speaker 3: aren't touched. So if you think about it that way, 309 00:16:07,920 --> 00:16:11,760 Speaker 3: you can grow other buckets into retirement to pay for 310 00:16:11,800 --> 00:16:14,280 Speaker 3: care and all those other things, and the home equity 311 00:16:14,320 --> 00:16:17,240 Speaker 3: at the very worst is just to wash You're not 312 00:16:17,280 --> 00:16:17,720 Speaker 3: in the hole. 313 00:16:17,960 --> 00:16:18,360 Speaker 4: I say. 314 00:16:18,640 --> 00:16:21,800 Speaker 3: Now people mentally think, hey, I want to leave my 315 00:16:22,560 --> 00:16:27,160 Speaker 3: home to my kids. My parents were raised by their 316 00:16:27,200 --> 00:16:30,400 Speaker 3: parents who came up in the Great Depression. They all 317 00:16:30,440 --> 00:16:33,640 Speaker 3: were wired to leave something to the kids, and they did. 318 00:16:34,760 --> 00:16:38,080 Speaker 3: Our generation already has a home. So one of the 319 00:16:38,080 --> 00:16:40,240 Speaker 3: first things we do with clients is have them bring 320 00:16:40,240 --> 00:16:43,040 Speaker 3: a loved one in who's going to help advise them, 321 00:16:43,120 --> 00:16:46,080 Speaker 3: or a financial planner and say, let's talk through what 322 00:16:46,120 --> 00:16:49,480 Speaker 3: are your goals here. Most of the time those clients 323 00:16:49,520 --> 00:16:53,680 Speaker 3: have never had the conversation with the next generation about 324 00:16:53,880 --> 00:16:55,840 Speaker 3: do you want my house, do you want my equity, 325 00:16:56,040 --> 00:16:57,960 Speaker 3: or do you want me to just live a quality 326 00:16:58,040 --> 00:16:59,920 Speaker 3: life and be able to travel and come see the 327 00:17:00,080 --> 00:17:02,840 Speaker 3: rank kids and not feel like I'm pinching pennies so 328 00:17:02,960 --> 00:17:06,280 Speaker 3: much that I can't even you know, have a luxury 329 00:17:06,320 --> 00:17:09,240 Speaker 3: at all. So what ends up happening is they get 330 00:17:09,240 --> 00:17:13,320 Speaker 3: freed up, they get blessed to make this decision, which 331 00:17:13,359 --> 00:17:14,800 Speaker 3: if they were to do it on their own, they 332 00:17:14,800 --> 00:17:16,919 Speaker 3: would say no, no, no, I don't like it, I 333 00:17:16,960 --> 00:17:19,160 Speaker 3: can't do it. Sure, and I've got a story. I'll 334 00:17:19,160 --> 00:17:19,919 Speaker 3: tell you when when you're right. 335 00:17:20,000 --> 00:17:21,560 Speaker 4: Yeah, but no, okay, we'll get we'll get to that. 336 00:17:21,600 --> 00:17:22,280 Speaker 3: Does that make sense? 337 00:17:22,400 --> 00:17:24,320 Speaker 4: It actually does? Yeah. 338 00:17:24,520 --> 00:17:26,680 Speaker 1: Now this is where I want to take a couple 339 00:17:26,760 --> 00:17:31,119 Speaker 1: of minutes here or to talk about. My understanding is 340 00:17:31,119 --> 00:17:33,760 Speaker 1: there's there's sort of two pass reverse ones a fixed 341 00:17:34,920 --> 00:17:36,480 Speaker 1: where you have a fixed interest rate. 342 00:17:36,320 --> 00:17:38,480 Speaker 4: And there's a chunk of money, and the other ones 343 00:17:38,520 --> 00:17:39,160 Speaker 4: are variable. 344 00:17:40,240 --> 00:17:44,200 Speaker 1: Right Is that right? Is that so correct? Okay, let's 345 00:17:44,240 --> 00:17:46,600 Speaker 1: talk about the fix. How does that actually really work? 346 00:17:47,080 --> 00:17:51,320 Speaker 3: So fixed rate is just you're committed to it and 347 00:17:51,960 --> 00:17:55,320 Speaker 3: you get to keep it. But the life of your life, 348 00:17:55,400 --> 00:17:59,720 Speaker 3: essentially of the youngest borrowers the last to leave. Actually, 349 00:18:00,040 --> 00:18:02,240 Speaker 3: that would be the one could pass earlier. So now 350 00:18:02,320 --> 00:18:03,640 Speaker 3: let's so just again. 351 00:18:03,760 --> 00:18:05,240 Speaker 1: The lawyer in me is that is, do you have 352 00:18:05,280 --> 00:18:07,159 Speaker 1: to be married to be the last available? Can you 353 00:18:07,200 --> 00:18:11,040 Speaker 1: be living together like our friends Peter and Ethan here, 354 00:18:11,040 --> 00:18:13,600 Speaker 1: and my dad's a retired lawyer, I can tell you that. Okay, 355 00:18:13,640 --> 00:18:17,280 Speaker 1: unless you're married, you don't work. No, okay, all right, 356 00:18:17,400 --> 00:18:19,880 Speaker 1: so you should be married. And if it's the youngest one, 357 00:18:19,920 --> 00:18:23,800 Speaker 1: like in this case we had Helen and she was sixty, 358 00:18:24,640 --> 00:18:26,680 Speaker 1: she would be the youngest life yep. 359 00:18:26,840 --> 00:18:29,120 Speaker 3: So if if either they're going to plan to get 360 00:18:29,160 --> 00:18:34,240 Speaker 3: married or he gives it to her and works on 361 00:18:34,280 --> 00:18:38,560 Speaker 3: that friend, trust the beneficiary, right, yeah, okay, once she's 362 00:18:38,600 --> 00:18:41,960 Speaker 3: on the title, then she can trust is on title. Yeah, 363 00:18:42,280 --> 00:18:43,520 Speaker 3: you can't take title and trust. 364 00:18:43,640 --> 00:18:44,040 Speaker 4: Okay. 365 00:18:44,560 --> 00:18:48,400 Speaker 3: Revocable not irrevocable. Okay, well, with her revocable. 366 00:18:48,480 --> 00:18:49,960 Speaker 1: The problem with that is if we put it a 367 00:18:50,040 --> 00:18:53,400 Speaker 1: revocable in his name he were to die. 368 00:18:53,400 --> 00:18:54,520 Speaker 4: It becomes irrevocable. 369 00:18:54,560 --> 00:18:56,359 Speaker 1: She could be the beneficiary, but she's not the owner 370 00:18:56,440 --> 00:18:58,560 Speaker 1: until he dies, so I don't think that would work right. 371 00:18:58,600 --> 00:19:02,879 Speaker 3: Well, no, but then when the next generation or the 372 00:19:02,920 --> 00:19:07,200 Speaker 3: spou the non spoules takes over. They have options. They 373 00:19:07,200 --> 00:19:11,080 Speaker 3: can either refinance out of the reverse, they can keep 374 00:19:11,080 --> 00:19:13,959 Speaker 3: it going, they could do another reverse, or that they 375 00:19:13,960 --> 00:19:15,240 Speaker 3: could sell the property. 376 00:19:14,880 --> 00:19:17,359 Speaker 4: Because you're gonna need them on the note basically right 377 00:19:18,240 --> 00:19:18,920 Speaker 4: that second. 378 00:19:18,720 --> 00:19:21,600 Speaker 3: Person when they become the heir, then they're given on 379 00:19:22,240 --> 00:19:25,359 Speaker 3: a letter that says, declare your intentions? What what are 380 00:19:25,440 --> 00:19:28,640 Speaker 3: your wishes in the house? Are you going to pay 381 00:19:28,640 --> 00:19:30,399 Speaker 3: for it? You're going to sell it? What are you 382 00:19:30,440 --> 00:19:30,800 Speaker 3: going to do? 383 00:19:31,240 --> 00:19:33,320 Speaker 4: There's still the requirement of having to stay in the home. 384 00:19:34,440 --> 00:19:37,640 Speaker 3: If so, that was one of the unintended consequences from 385 00:19:37,640 --> 00:19:40,520 Speaker 3: the eighties that really didn't get fixed until after twenty ten, 386 00:19:41,000 --> 00:19:44,800 Speaker 3: which was which is probably most of the bad press 387 00:19:45,320 --> 00:19:48,480 Speaker 3: reverse mortgages. Grandma got kicked out of the house because 388 00:19:48,520 --> 00:19:51,240 Speaker 3: Grandpa passed away, Okay, that was not good. 389 00:19:51,520 --> 00:19:52,880 Speaker 4: Or grandma went to the nursing home. 390 00:19:53,600 --> 00:19:59,520 Speaker 3: However, the last remaining uh IS was never on the 391 00:19:59,560 --> 00:20:03,200 Speaker 3: loan and on title. Then they were not allowed to stay. Now, 392 00:20:03,400 --> 00:20:06,000 Speaker 3: if you're married and you're not on the reverse mortgage, 393 00:20:06,040 --> 00:20:08,000 Speaker 3: but you're married and you were living in there with 394 00:20:08,040 --> 00:20:10,640 Speaker 3: your spouse when he took the more or she took 395 00:20:10,640 --> 00:20:13,119 Speaker 3: the mortgage out right, then you get to stay okay, 396 00:20:13,520 --> 00:20:15,000 Speaker 3: and that's a heat, that's schame change. 397 00:20:15,000 --> 00:20:17,960 Speaker 4: That is sure. Okay, all right, great. 398 00:20:17,880 --> 00:20:19,600 Speaker 1: All right, that's a lot of good information. 399 00:20:19,920 --> 00:20:21,359 Speaker 4: Thank you, Chris, really appreciate this. 400 00:20:21,400 --> 00:20:23,479 Speaker 1: So hey, listen, if you're out there and you're wondering 401 00:20:23,520 --> 00:20:27,320 Speaker 1: about reverse mortgage, does this make sense for you? Is 402 00:20:27,359 --> 00:20:29,960 Speaker 1: this something that your parents might want to consider? You 403 00:20:30,000 --> 00:20:30,760 Speaker 1: have questions? 404 00:20:30,840 --> 00:20:31,600 Speaker 4: I know you do. 405 00:20:31,640 --> 00:20:34,000 Speaker 1: You want to find out more about this, give us 406 00:20:34,040 --> 00:20:37,639 Speaker 1: a call, absolutely complimentary. We will help you figure this out. 407 00:20:38,080 --> 00:20:41,240 Speaker 1: Eight six six Protect. Call us right now. 408 00:20:41,240 --> 00:20:41,680 Speaker 4: We're here. 409 00:20:41,720 --> 00:20:44,439 Speaker 1: We're answering phone calls. Maybe we could even answer your 410 00:20:44,520 --> 00:20:49,240 Speaker 1: question eight six six seven seven six eight three two eight. 411 00:20:49,320 --> 00:20:51,400 Speaker 1: You want to know more about this, how you can 412 00:20:51,440 --> 00:20:53,639 Speaker 1: get at the equity in your ground without having to 413 00:20:53,680 --> 00:20:56,280 Speaker 1: sell the home or move out of it eight six 414 00:20:56,440 --> 00:20:59,359 Speaker 1: six Protect. Coming up next on protect your assets. 415 00:20:59,400 --> 00:20:59,960 Speaker 4: We're going to get more. 416 00:21:00,000 --> 00:21:02,320 Speaker 1: We're into this important subject that's coming up next. 417 00:21:02,720 --> 00:21:03,480 Speaker 4: Keep it right here. 418 00:21:10,720 --> 00:21:13,560 Speaker 2: Take the first step toward reaching your financial goals and 419 00:21:13,600 --> 00:21:16,800 Speaker 2: get the information that can help you live a confident retirement. 420 00:21:16,880 --> 00:21:20,240 Speaker 2: That first step is going to b Yaevents dot com 421 00:21:20,280 --> 00:21:25,120 Speaker 2: and signing up for our next free event. That's Pyaevents 422 00:21:25,400 --> 00:21:29,240 Speaker 2: dot Com. Now back to Protect your Assets with David Hollander, 423 00:21:29,359 --> 00:21:29,920 Speaker 2: the Sandman. 424 00:21:34,960 --> 00:21:38,640 Speaker 1: Welcome back, Welcome back to Protect your Assets. I'm David Hollander, 425 00:21:39,160 --> 00:21:42,040 Speaker 1: also known around here as the Sandman. All right, so 426 00:21:42,320 --> 00:21:46,200 Speaker 1: just to circle back, we were talking about the reverse mortgage. 427 00:21:46,240 --> 00:21:48,720 Speaker 1: It kind of breaks down into two categories. There's the 428 00:21:48,800 --> 00:21:51,679 Speaker 1: fixed interest rate where you get a chunk of money, 429 00:21:52,240 --> 00:21:54,560 Speaker 1: and then there's a variable interest rate where other things 430 00:21:54,600 --> 00:21:56,680 Speaker 1: up and we'll talk about So, yeah, on the fixed side, 431 00:21:56,680 --> 00:21:58,400 Speaker 1: we were talking about that. So it's a fixed rate 432 00:21:58,440 --> 00:22:02,720 Speaker 1: of interest, yep, out a chunk of money again depending. 433 00:22:02,400 --> 00:22:04,359 Speaker 4: On some of the factors you talked about earlier. Anything 434 00:22:04,400 --> 00:22:05,520 Speaker 4: else we should know about that. 435 00:22:05,960 --> 00:22:08,600 Speaker 3: It's just that it's once you get it, whether it's 436 00:22:08,680 --> 00:22:12,000 Speaker 3: a FAHA product or a private label product, once you 437 00:22:12,040 --> 00:22:16,240 Speaker 3: get assets dispersed to you, that's the end. You can't 438 00:22:16,240 --> 00:22:20,800 Speaker 3: get access again. So it's it's untouched equity, which is 439 00:22:20,800 --> 00:22:24,960 Speaker 3: a good thing, but people underestimate how much they need 440 00:22:26,200 --> 00:22:29,760 Speaker 3: in the short term, and then they mostly when you 441 00:22:29,800 --> 00:22:32,720 Speaker 3: get somebody like a financial planner involved and start start 442 00:22:32,720 --> 00:22:34,600 Speaker 3: planning out what their expenses are going to be over 443 00:22:34,600 --> 00:22:37,320 Speaker 3: a period of time, they come back and rethink, and 444 00:22:37,440 --> 00:22:41,880 Speaker 3: oftentimes they end up not wanting to fix. So statistically, nationwide, 445 00:22:42,080 --> 00:22:45,320 Speaker 3: the fixed rate products are maybe ten percent or less 446 00:22:45,760 --> 00:22:48,760 Speaker 3: of the reverse mortgages that get done, and most of 447 00:22:48,760 --> 00:22:50,200 Speaker 3: them are on the adjustable reproduct. 448 00:22:50,560 --> 00:22:56,320 Speaker 1: So does the adjustable rate product make payments to the recipients. 449 00:22:56,440 --> 00:22:59,480 Speaker 3: So there's a bunch of options. So I call it 450 00:22:59,480 --> 00:23:00,560 Speaker 3: the bells and whistles. 451 00:23:00,640 --> 00:23:02,200 Speaker 4: Okay, how many are there? Roughly? 452 00:23:02,560 --> 00:23:07,840 Speaker 3: Well, there's you can receive combination of these you can get. 453 00:23:07,880 --> 00:23:09,399 Speaker 1: Okay, this is where you were talking about that story 454 00:23:09,440 --> 00:23:12,159 Speaker 1: earlier where you had somebody who's getting an equity line, 455 00:23:12,960 --> 00:23:15,320 Speaker 1: getting some payments and maybe some cash out. 456 00:23:15,760 --> 00:23:16,920 Speaker 3: You can get all those things. 457 00:23:17,280 --> 00:23:21,320 Speaker 1: So let's just just again for time sake. There's multiple 458 00:23:21,359 --> 00:23:24,280 Speaker 1: ways you can get access to this capital on the 459 00:23:24,400 --> 00:23:25,440 Speaker 1: variable side. 460 00:23:25,240 --> 00:23:30,000 Speaker 3: Upfront cash, a stand by line of credit, or either 461 00:23:30,040 --> 00:23:37,240 Speaker 3: a lifetime or a tenure or term monthly distribution. 462 00:23:36,960 --> 00:23:38,240 Speaker 4: In term is a certain term. 463 00:23:38,280 --> 00:23:40,080 Speaker 3: So if you get I want it for five years, 464 00:23:40,119 --> 00:23:41,520 Speaker 3: I want it for ten years, and I want to stop. 465 00:23:41,600 --> 00:23:43,240 Speaker 4: What if you did ten years and you died in 466 00:23:43,320 --> 00:23:43,960 Speaker 4: the eighth year. 467 00:23:44,680 --> 00:23:48,040 Speaker 3: Whatever unused equity is left is still wasn't ever tapped. 468 00:23:48,040 --> 00:23:50,520 Speaker 4: Then it goes to the airs, or it could pay 469 00:23:50,560 --> 00:23:51,160 Speaker 4: to your spouse. 470 00:23:51,520 --> 00:23:53,679 Speaker 3: Is she on the loan or not? Yeah, well then 471 00:23:53,800 --> 00:23:56,399 Speaker 3: then the loan doesn't stop because the older one passed, 472 00:23:57,280 --> 00:23:57,800 Speaker 3: we get younger. 473 00:23:57,920 --> 00:23:59,520 Speaker 4: Yeah, I mean, is there's still. 474 00:23:59,280 --> 00:24:01,520 Speaker 3: Somebody in the home and they're on the reverse mortgages, 475 00:24:01,600 --> 00:24:03,680 Speaker 3: then the product is still open and functioning. 476 00:24:03,840 --> 00:24:07,600 Speaker 1: Understood. Okay, that's good to understand. So on the variable side, 477 00:24:07,880 --> 00:24:10,040 Speaker 1: it sounds like the variable size a lot of flexibility. 478 00:24:10,160 --> 00:24:13,760 Speaker 3: Yes, it's it's where ninety percent or plus of the 479 00:24:13,840 --> 00:24:16,159 Speaker 3: reverse mortages in the US end upth that is they 480 00:24:16,200 --> 00:24:18,760 Speaker 3: may start with fixed, Yeah, they don't once they see 481 00:24:18,760 --> 00:24:19,840 Speaker 3: what the options are. 482 00:24:19,680 --> 00:24:22,439 Speaker 4: They interesting, and then how does that rate adjust? 483 00:24:23,359 --> 00:24:27,679 Speaker 3: So it's based on the SOFA if you're familiar with that. 484 00:24:28,640 --> 00:24:33,120 Speaker 3: It's a manufactured index that was built to replace the LIBOR, 485 00:24:33,200 --> 00:24:38,240 Speaker 3: which was the London Interbank Offered rate, which was manipulated 486 00:24:38,280 --> 00:24:43,760 Speaker 3: by foreign actors. And so the federal government said, we 487 00:24:43,840 --> 00:24:50,320 Speaker 3: can't have somebody overseas manipulating interest rates for our US customers. 488 00:24:50,480 --> 00:24:52,520 Speaker 3: So they created SOFA and it took them a long 489 00:24:52,560 --> 00:24:54,639 Speaker 3: time and they were late with it like everything else. 490 00:24:55,040 --> 00:24:58,719 Speaker 3: But that is now what the inets is and then 491 00:24:58,760 --> 00:25:01,520 Speaker 3: you've got a margin and the client gets to choose 492 00:25:01,560 --> 00:25:05,200 Speaker 3: the margin. There's a range of margins, and I'll give 493 00:25:05,200 --> 00:25:08,359 Speaker 3: you two reasons why, and then if I can, I'll 494 00:25:08,359 --> 00:25:10,520 Speaker 3: give you a little quick case study. So I had 495 00:25:10,560 --> 00:25:13,080 Speaker 3: a client that bought a condo in Oakland. She didn't 496 00:25:13,160 --> 00:25:16,840 Speaker 3: need me because she had cash. She'd inherited her husband's AIRA. 497 00:25:17,720 --> 00:25:19,520 Speaker 3: She went all in on the cash and again she 498 00:25:19,560 --> 00:25:21,480 Speaker 3: didn't need to talk to me because I'm a long 499 00:25:21,560 --> 00:25:24,399 Speaker 3: guy and she's got cash. She didn't factor in that 500 00:25:24,480 --> 00:25:27,800 Speaker 3: she had federal and state tax liability that was coming 501 00:25:27,800 --> 00:25:29,840 Speaker 3: her way and when she got the bill paid cash 502 00:25:29,840 --> 00:25:30,399 Speaker 3: for the conduct. 503 00:25:30,440 --> 00:25:30,720 Speaker 4: Wow. 504 00:25:30,840 --> 00:25:33,919 Speaker 3: So she then said, oh. Her neighbor said, oh, you 505 00:25:33,960 --> 00:25:35,919 Speaker 3: need to go see Chris because he can help you. 506 00:25:36,400 --> 00:25:39,159 Speaker 3: And I ended up getting the entire building approved for 507 00:25:39,320 --> 00:25:41,880 Speaker 3: FHA so that I could get her aver of mortgage. 508 00:25:42,359 --> 00:25:45,520 Speaker 3: And I broke my own rule about including a loved 509 00:25:45,520 --> 00:25:51,080 Speaker 3: one in the whole process, education, conversation, everything, because she said, 510 00:25:51,080 --> 00:25:53,640 Speaker 3: my son's he doesn't. I've got one kid, he doesn't 511 00:25:53,640 --> 00:25:56,800 Speaker 3: need the money, so I left him out. I broke 512 00:25:56,840 --> 00:26:00,840 Speaker 3: my own rule first and last time. And at the 513 00:26:00,840 --> 00:26:04,239 Speaker 3: eleventh hour he comes in after I've done. Getting in 514 00:26:04,320 --> 00:26:07,199 Speaker 3: a building faha approved is not a small thing. And 515 00:26:07,240 --> 00:26:10,000 Speaker 3: that was for one customer future customers, but it was 516 00:26:10,080 --> 00:26:14,400 Speaker 3: for this one lady who needed help. Well, the Sun 517 00:26:14,480 --> 00:26:16,080 Speaker 3: comes in at the eleventh hour and says, hey, what 518 00:26:16,119 --> 00:26:18,120 Speaker 3: are you trying to pull my mom standard? I would 519 00:26:18,119 --> 00:26:20,159 Speaker 3: do the same thing. And I said, well, would you 520 00:26:20,200 --> 00:26:22,240 Speaker 3: like to listen to what I have been trying to propose? 521 00:26:22,600 --> 00:26:24,200 Speaker 3: Or he said, I'm going to just get a heelock 522 00:26:24,240 --> 00:26:26,399 Speaker 3: out my house and I'm going to do it. Great, 523 00:26:26,760 --> 00:26:30,040 Speaker 3: that's planing should always be family, solving the problem with family. 524 00:26:31,040 --> 00:26:33,600 Speaker 3: We're here to educate. If you want to listen, then great. 525 00:26:34,400 --> 00:26:37,080 Speaker 3: So he comes back a year later. The Sun comes 526 00:26:37,080 --> 00:26:39,760 Speaker 3: back a year later and says, what were you telling 527 00:26:39,760 --> 00:26:42,159 Speaker 3: me about this thing? I still haven't solved this problem 528 00:26:42,320 --> 00:26:45,400 Speaker 3: that the IRS tax payments are a current interest and 529 00:26:45,440 --> 00:26:48,280 Speaker 3: I haven't solved it. And when I educated him on 530 00:26:48,280 --> 00:26:52,080 Speaker 3: the product, he went from being a hater to being 531 00:26:52,280 --> 00:26:55,240 Speaker 3: an advocator for her to take the high yes and 532 00:26:55,280 --> 00:27:00,680 Speaker 3: the highest margin possible. Why she owed that as taxes 533 00:27:01,480 --> 00:27:04,480 Speaker 3: that was gonna be like fifty thousand. She had a 534 00:27:04,480 --> 00:27:06,600 Speaker 3: two hundred and fifty thousand dollars stand by line of 535 00:27:06,600 --> 00:27:10,120 Speaker 3: credit that she was able to pull the property taxes 536 00:27:10,160 --> 00:27:13,760 Speaker 3: out of every month, every six months when the dupe 537 00:27:13,960 --> 00:27:19,480 Speaker 3: their due, and the stand by line of credit appreciated 538 00:27:19,640 --> 00:27:22,000 Speaker 3: faster than the pullout of the property taxes. So I 539 00:27:22,040 --> 00:27:24,359 Speaker 3: just talked to her a little while ago. Nine years later, 540 00:27:24,720 --> 00:27:26,760 Speaker 3: her line of credit is bigger than when it started, 541 00:27:26,800 --> 00:27:28,840 Speaker 3: and she's pulled nine years of property taxes out of 542 00:27:28,840 --> 00:27:34,879 Speaker 3: that line of credit, which has improved every Yes, she 543 00:27:35,080 --> 00:27:37,400 Speaker 3: took care of that, and and she's got more money 544 00:27:37,440 --> 00:27:39,719 Speaker 3: than she started, access to more of her equity than 545 00:27:39,760 --> 00:27:44,040 Speaker 3: she started with because nine years ago, because we set aside, 546 00:27:44,080 --> 00:27:46,280 Speaker 3: that's stand by line of credit. So the sun went 547 00:27:46,320 --> 00:27:50,080 Speaker 3: from no to get the biggest margin you can. She 548 00:27:50,200 --> 00:27:52,840 Speaker 3: ended up going with a lower margin because you know, 549 00:27:53,160 --> 00:27:54,920 Speaker 3: she didn't want the highest margin. She didn't want it 550 00:27:54,960 --> 00:27:58,879 Speaker 3: to a crew faster. But the balance is accruing on 551 00:27:58,960 --> 00:28:01,440 Speaker 3: the loan and they'll stand by line of credit at 552 00:28:01,440 --> 00:28:04,080 Speaker 3: the same rate as the mortgage. So if you think 553 00:28:04,119 --> 00:28:06,280 Speaker 3: about that, if you have that imbalance of five to one, 554 00:28:06,440 --> 00:28:12,159 Speaker 3: sure fifty. Now I'm on radio using my hands, but 555 00:28:13,000 --> 00:28:17,280 Speaker 3: it's you're you're gonna, you're gonna, you're gonna outpace. Yes, 556 00:28:18,080 --> 00:28:20,879 Speaker 3: assuming that you just make those minimum drive. We we 557 00:28:21,080 --> 00:28:24,080 Speaker 3: modeled it out on a spreadsheet. The son was a 558 00:28:24,119 --> 00:28:26,639 Speaker 3: software guy and he loved a spreadsheet. We modeled it 559 00:28:26,680 --> 00:28:28,879 Speaker 3: out for twenty years and said, here's where she's going 560 00:28:28,960 --> 00:28:31,160 Speaker 3: to be when she needs care. Interesting and it won't 561 00:28:31,160 --> 00:28:33,640 Speaker 3: be coming out of the sun's pocket. It'll be coming 562 00:28:33,680 --> 00:28:36,080 Speaker 3: out of the equity in home that she's set aside. 563 00:28:36,320 --> 00:28:37,080 Speaker 4: Good. That's good. 564 00:28:38,280 --> 00:28:43,520 Speaker 1: So what happens when she ultimately passes away? What happens 565 00:28:43,560 --> 00:28:44,840 Speaker 1: to the reverse mortgage? 566 00:28:45,080 --> 00:28:49,000 Speaker 3: So there's a list of contacts that are required when 567 00:28:49,040 --> 00:28:51,280 Speaker 3: you close a reverse mortgage. In case they can't reach 568 00:28:51,320 --> 00:28:55,200 Speaker 3: you really quick, they do a once a year proof 569 00:28:55,200 --> 00:28:55,840 Speaker 3: of life check. 570 00:28:55,960 --> 00:28:56,720 Speaker 4: How do they do that? 571 00:28:56,880 --> 00:28:59,760 Speaker 3: They they send out a letter as a letter now 572 00:28:59,760 --> 00:29:04,600 Speaker 3: are em still It depends on the servicer. It's still 573 00:29:04,600 --> 00:29:07,280 Speaker 3: a letter in a lot of cases. But if you 574 00:29:07,360 --> 00:29:10,800 Speaker 3: don't reply in blue ink or answer the phone, then 575 00:29:10,840 --> 00:29:14,680 Speaker 3: they're going to go to your alternative contact. Typically the 576 00:29:14,760 --> 00:29:17,920 Speaker 3: loan guy is not the financial planner often is, and 577 00:29:17,960 --> 00:29:21,200 Speaker 3: they say, have you heard from Mildred in the last 578 00:29:21,240 --> 00:29:25,400 Speaker 3: six months? Oh, yeah, she's in skilled nursing. Now, okay, 579 00:29:25,720 --> 00:29:28,000 Speaker 3: if you're out of the home for twelve months for 580 00:29:28,120 --> 00:29:31,160 Speaker 3: whatever reason, then that loan has to be dealt with, 581 00:29:31,800 --> 00:29:34,560 Speaker 3: and you have time to do it. But the mistake 582 00:29:34,600 --> 00:29:36,520 Speaker 3: that people make is putting their head in the sand 583 00:29:36,560 --> 00:29:38,800 Speaker 3: and not ignoring or hiding and trying to hide from 584 00:29:38,800 --> 00:29:42,400 Speaker 3: the servicer. I had one client whose mother passed away 585 00:29:42,760 --> 00:29:45,480 Speaker 3: and the son, who's a disabled veteran, was living in 586 00:29:45,520 --> 00:29:48,080 Speaker 3: the house. Still it's like, well, we could help figure 587 00:29:48,120 --> 00:29:51,440 Speaker 3: this out, but don't. You've got way too much equity, 588 00:29:51,440 --> 00:29:53,600 Speaker 3: don't get foreclosed on. They stuck their heads in the 589 00:29:53,600 --> 00:29:57,760 Speaker 3: sand so much so that there was a foreclosure notice 590 00:29:57,800 --> 00:30:01,120 Speaker 3: tacked to their door boy, and they lost the equity 591 00:30:01,200 --> 00:30:03,440 Speaker 3: o boy because they were trying to hide the fact 592 00:30:03,440 --> 00:30:05,520 Speaker 3: that the mother had passed away. So the thing that 593 00:30:05,560 --> 00:30:08,800 Speaker 3: I tell them is don't ignore them. And whatever you get, 594 00:30:09,920 --> 00:30:13,040 Speaker 3: anything you get from the servicer and anything you get 595 00:30:13,040 --> 00:30:15,240 Speaker 3: from the county, sure it's about money and they're gonna 596 00:30:15,240 --> 00:30:18,000 Speaker 3: probably want it. So just send us what you're looking at, 597 00:30:18,080 --> 00:30:20,600 Speaker 3: send it to your financial planning, your trusted loved one, 598 00:30:20,760 --> 00:30:23,160 Speaker 3: and then let's work it out. Yeah, we can communicate. 599 00:30:23,200 --> 00:30:24,920 Speaker 3: I can jump on a call with them and talk 600 00:30:24,960 --> 00:30:27,120 Speaker 3: to the servicer, because that's the first time talking to them. 601 00:30:27,560 --> 00:30:30,600 Speaker 3: We jump in and we're allowed to be if they 602 00:30:30,640 --> 00:30:33,720 Speaker 3: authorize us to be another contact, but we have to 603 00:30:35,000 --> 00:30:36,160 Speaker 3: have them give us permission. 604 00:30:36,360 --> 00:30:40,200 Speaker 1: Good is a reverse mortgage right for you? I know 605 00:30:40,320 --> 00:30:44,760 Speaker 1: you have questions? Hollis eight six six Protect The number 606 00:30:44,800 --> 00:30:47,480 Speaker 1: to call to find out about reverse mortgages right now 607 00:30:48,040 --> 00:30:52,440 Speaker 1: eight six six seven seven six eight three two eight 608 00:30:53,280 --> 00:30:57,280 Speaker 1: Call and get some information now, Chris is here eight 609 00:30:57,360 --> 00:31:00,440 Speaker 1: six six Protect. Give us a call right right now. 610 00:31:00,880 --> 00:31:02,960 Speaker 1: Coming up next on protect your Assets. We're going to 611 00:31:03,040 --> 00:31:06,120 Speaker 1: get more into this important subject coming up next, Keep 612 00:31:06,160 --> 00:31:06,720 Speaker 1: it right here. 613 00:31:10,520 --> 00:31:14,680 Speaker 2: Times are changing, some would say they've already changed, and 614 00:31:14,760 --> 00:31:18,920 Speaker 2: how do you actually protect your assets? David Hollanders. Protect 615 00:31:18,920 --> 00:31:23,000 Speaker 2: your Assets events focus on common financial concerns that individuals 616 00:31:23,040 --> 00:31:26,000 Speaker 2: and families face in retirement, things like how to prepare 617 00:31:26,040 --> 00:31:29,680 Speaker 2: for unexpected medical expenses and ways to create income to 618 00:31:29,720 --> 00:31:33,200 Speaker 2: help support your desired lifestyle. Join us at our next 619 00:31:33,240 --> 00:31:36,400 Speaker 2: free event to learn how addressing these concerns can help 620 00:31:36,400 --> 00:31:39,200 Speaker 2: you feel more confident about the days ahead and help 621 00:31:39,240 --> 00:31:42,600 Speaker 2: you sleep better at night. Just go to pyaevents dot 622 00:31:42,600 --> 00:31:47,080 Speaker 2: com and reserve your seat today. That's pyaevents dot com 623 00:31:47,080 --> 00:31:50,920 Speaker 2: and sign up or join the wait list today Pyaevents 624 00:31:51,160 --> 00:31:55,200 Speaker 2: dot Com. Now back to Protect your Assets with David Hollander, 625 00:31:55,280 --> 00:31:55,880 Speaker 2: the Sandman. 626 00:31:59,400 --> 00:32:03,080 Speaker 1: Welcome back, Welcome back to Protect your Assets. I'm David Hollander, 627 00:32:03,560 --> 00:32:06,840 Speaker 1: also known around here as the Sandman. My guest today 628 00:32:06,880 --> 00:32:11,560 Speaker 1: is Chris and we were talking about Helen and Peter 629 00:32:12,240 --> 00:32:15,200 Speaker 1: their situation and what would you like to know about them, 630 00:32:15,280 --> 00:32:18,480 Speaker 1: Like where would you go with this case? So, because 631 00:32:18,520 --> 00:32:20,840 Speaker 1: they want to stay in the home, that's the objective. 632 00:32:20,480 --> 00:32:23,040 Speaker 3: And that's important. They have kids from different marriages, no, 633 00:32:23,040 --> 00:32:26,840 Speaker 3: no kids, okay, so that's helpful. And they have joint 634 00:32:26,840 --> 00:32:28,160 Speaker 3: assets are all separate. 635 00:32:28,600 --> 00:32:29,360 Speaker 4: It's all joint. 636 00:32:29,520 --> 00:32:35,040 Speaker 1: So they have liquid, approximately one point two million liquid, okay. 637 00:32:35,800 --> 00:32:38,200 Speaker 3: And kind of what rate of return are they getting 638 00:32:38,200 --> 00:32:38,360 Speaker 3: on that? 639 00:32:38,520 --> 00:32:41,320 Speaker 4: They're getting about five five and a half percent okay. 640 00:32:41,440 --> 00:32:44,720 Speaker 3: So when you look at that case, you can go 641 00:32:44,760 --> 00:32:47,240 Speaker 3: two different ways with it. You could do a reverse 642 00:32:47,280 --> 00:32:50,800 Speaker 3: more use for him now, and then you free up 643 00:32:50,920 --> 00:32:55,240 Speaker 3: the monthly payments. If they qualify. Now you can bring 644 00:32:55,400 --> 00:32:58,400 Speaker 3: It's not common, but you can bring cash in. And 645 00:32:58,440 --> 00:33:02,280 Speaker 3: if you think about the blended rate between that first 646 00:33:02,360 --> 00:33:04,840 Speaker 3: and the second, yeah, the blender, you could calculate that 647 00:33:04,840 --> 00:33:07,960 Speaker 3: BRender ring, but it's probably it's if the first is 648 00:33:07,960 --> 00:33:10,479 Speaker 3: at two point eight and the seconds at nine, the 649 00:33:10,520 --> 00:33:14,640 Speaker 3: blended rate is probably in the fours, maybe low fives. 650 00:33:15,440 --> 00:33:20,160 Speaker 3: So how how much cash flow would you free up 651 00:33:20,640 --> 00:33:22,640 Speaker 3: in that short term if he's going to have that 652 00:33:22,720 --> 00:33:26,040 Speaker 3: reverse mortgage? And then if you set aside the funds, 653 00:33:26,560 --> 00:33:29,040 Speaker 3: you can make payments on these verse mortgages. You don't 654 00:33:29,080 --> 00:33:31,479 Speaker 3: have to just let it run like it's designed. You 655 00:33:31,520 --> 00:33:35,560 Speaker 3: can make optional payments when and if you choose. Sure, so, 656 00:33:36,600 --> 00:33:38,880 Speaker 3: they could make an interest only payment, they could make 657 00:33:38,880 --> 00:33:41,480 Speaker 3: a half interest only payment and model it out to 658 00:33:41,520 --> 00:33:44,360 Speaker 3: where they have no payment, they free up the cash flow. 659 00:33:44,800 --> 00:33:48,320 Speaker 3: And then when she is of age they can. 660 00:33:48,480 --> 00:33:51,920 Speaker 1: And again we're assuming, are we assuming then when you 661 00:33:51,960 --> 00:33:52,960 Speaker 1: say of age that he's. 662 00:33:52,840 --> 00:33:55,880 Speaker 3: Sixty, not that he's passing, you could model both. 663 00:33:55,960 --> 00:33:58,440 Speaker 1: I see, But you know, I've seen a practice where 664 00:33:58,440 --> 00:34:00,840 Speaker 1: you think somebody's going to happen on one peron and 665 00:34:00,880 --> 00:34:01,760 Speaker 1: it happens to the other. 666 00:34:01,880 --> 00:34:05,800 Speaker 3: You know, absolutely so the caregiver is the one who 667 00:34:05,840 --> 00:34:09,279 Speaker 3: breaks down first because they've been given everything they've got 668 00:34:09,280 --> 00:34:11,399 Speaker 3: to take care of their spouse. That happens all the time. 669 00:34:11,440 --> 00:34:15,560 Speaker 4: Yep. Anything else for this case that we should explore. 670 00:34:16,280 --> 00:34:17,919 Speaker 3: I just think there's a there's a lot of moving 671 00:34:17,920 --> 00:34:20,600 Speaker 3: parts there, but the very first take is he's seventy two, 672 00:34:20,960 --> 00:34:25,000 Speaker 3: the combined loan to value is over fifty. He might 673 00:34:25,080 --> 00:34:27,400 Speaker 3: have to bring in a little cash to get a 674 00:34:27,440 --> 00:34:29,759 Speaker 3: reverse mortgage, but doesn't mean that that's a bad thing. 675 00:34:29,800 --> 00:34:31,360 Speaker 3: You have to look at worders to return on that 676 00:34:31,840 --> 00:34:33,759 Speaker 3: investment compared to the five and a half that you 677 00:34:33,760 --> 00:34:35,480 Speaker 3: say they're earning on those assets. 678 00:34:35,520 --> 00:34:39,200 Speaker 4: Exactly. Okay, I like that. You had a case you 679 00:34:39,200 --> 00:34:40,040 Speaker 4: wanted to talk about. 680 00:34:40,280 --> 00:34:43,200 Speaker 3: Yeah, so I had a client whose husband passed away. 681 00:34:44,040 --> 00:34:46,560 Speaker 3: They'd paid cash for everything. Their house is free and clear. 682 00:34:47,400 --> 00:34:49,560 Speaker 3: She calls around trying to get a reverse mortgage and 683 00:34:49,600 --> 00:34:52,839 Speaker 3: she can't because she has no credit, no credit. No, 684 00:34:52,880 --> 00:34:55,360 Speaker 3: they paid cash for everything. Yeah, for thirty years literally, 685 00:34:56,200 --> 00:35:00,279 Speaker 3: so they don't other folks that know, but we know 686 00:35:00,360 --> 00:35:05,720 Speaker 3: the guidelines. We went and helped build alternative credit, got 687 00:35:06,200 --> 00:35:08,719 Speaker 3: a couple of conference calls with the client and the 688 00:35:08,800 --> 00:35:12,360 Speaker 3: utilities and phone bill, that kind of stuff, and we 689 00:35:12,440 --> 00:35:15,279 Speaker 3: built her a credit score and then we were able 690 00:35:15,280 --> 00:35:17,960 Speaker 3: to do the reverse mortgage for her because she didn't 691 00:35:17,960 --> 00:35:21,600 Speaker 3: have a solution. She was in her late eighties and 692 00:35:21,880 --> 00:35:25,040 Speaker 3: wanted to stay in her home and her kids wanted 693 00:35:25,080 --> 00:35:25,880 Speaker 3: her to stay in the home. 694 00:35:26,440 --> 00:35:28,719 Speaker 1: And was she in a situation from a cash flow 695 00:35:28,719 --> 00:35:31,160 Speaker 1: where she didn't have enough to pay her bills or 696 00:35:31,160 --> 00:35:32,360 Speaker 1: was it more of a long term. 697 00:35:32,160 --> 00:35:35,360 Speaker 3: Care She has a son whose special needs and is 698 00:35:35,400 --> 00:35:38,080 Speaker 3: going to need care, and she didn't have a special 699 00:35:38,120 --> 00:35:41,160 Speaker 3: needs trust set up, so she was literally taking care 700 00:35:41,160 --> 00:35:44,560 Speaker 3: of her husband until he passed. She's eighty seven years 701 00:35:44,560 --> 00:35:46,600 Speaker 3: old and now she's caring for a sixty something year 702 00:35:46,600 --> 00:35:47,720 Speaker 3: old disabled sign. 703 00:35:47,680 --> 00:35:50,160 Speaker 1: And okay, so let's let's explore it through that. So 704 00:35:51,000 --> 00:35:53,840 Speaker 1: what happens, what happened? She's the owner, I assume on 705 00:35:53,880 --> 00:35:54,239 Speaker 1: the home. 706 00:35:54,480 --> 00:35:55,799 Speaker 3: Yeah, she's the roommain owner. 707 00:35:55,880 --> 00:35:58,040 Speaker 4: Yeah, so what happens when something happens to her? That 708 00:35:58,080 --> 00:35:59,560 Speaker 4: house will be sold, won't it. 709 00:36:00,120 --> 00:36:06,200 Speaker 3: The alternative contact gets contacted and says, what are your choice? 710 00:36:06,239 --> 00:36:08,600 Speaker 3: Here are your choices? You can keep it could be 711 00:36:09,160 --> 00:36:14,040 Speaker 3: a niece or nephew, somebody whoever's on her next of kin, 712 00:36:14,680 --> 00:36:19,200 Speaker 3: trust success or trustee, whatever, what are the wishes of 713 00:36:19,239 --> 00:36:21,799 Speaker 3: the family. A lot of people just say, oh, they 714 00:36:21,800 --> 00:36:25,080 Speaker 3: want to sell. Some people say I want to move in. 715 00:36:25,880 --> 00:36:28,920 Speaker 3: I had one where the mother had a reverse mortgage 716 00:36:29,000 --> 00:36:32,000 Speaker 3: and the daughter was caring for her she passed, the 717 00:36:32,040 --> 00:36:34,920 Speaker 3: reverse mortgage was doing payable. The daughter had turned sixty two. 718 00:36:35,280 --> 00:36:38,880 Speaker 3: We did a reverse mortgage to refinance her mother's reverse 719 00:36:38,880 --> 00:36:40,799 Speaker 3: mortgage so she could stay in the home that she 720 00:36:40,880 --> 00:36:42,840 Speaker 3: had lived in since she was nine years old. Wow, 721 00:36:42,960 --> 00:36:46,480 Speaker 3: and she never had and she didn't the education that 722 00:36:46,560 --> 00:36:49,960 Speaker 3: it took for somebody who'd never had. She'd lived with 723 00:36:50,000 --> 00:36:53,000 Speaker 3: her mother, cared for her mother and never had any 724 00:36:53,160 --> 00:36:57,080 Speaker 3: credit or a mortgage. Sure understanding the whole process that 725 00:36:57,080 --> 00:37:00,160 Speaker 3: that was part of the approach we take in education. 726 00:37:00,800 --> 00:37:02,040 Speaker 4: Which is a big, huge part of it. 727 00:37:02,080 --> 00:37:05,160 Speaker 3: That was an amazing story. Also, that's a third one 728 00:37:05,280 --> 00:37:08,360 Speaker 3: or fourth one. Yeah, to have the mother's reverse morrias 729 00:37:08,360 --> 00:37:10,200 Speaker 3: get paid off by the daughter's reverse morias so she 730 00:37:10,239 --> 00:37:11,879 Speaker 3: could live in the home that she'd lived in since 731 00:37:11,880 --> 00:37:12,680 Speaker 3: she was nine years old. 732 00:37:12,760 --> 00:37:14,080 Speaker 4: Right, Yeah, that's a big one. 733 00:37:14,560 --> 00:37:16,840 Speaker 3: That's that's a Cinderella story. 734 00:37:16,960 --> 00:37:20,160 Speaker 4: Yet, Well, we are out of time. I really do 735 00:37:20,239 --> 00:37:22,359 Speaker 4: appreciate you being here today. Thank you for this. 736 00:37:22,480 --> 00:37:24,239 Speaker 3: It's my pleasure. I hope I can come back soon. 737 00:37:24,480 --> 00:37:26,640 Speaker 1: Well, this has certainly been a great show, a lot 738 00:37:26,640 --> 00:37:29,320 Speaker 1: of really good information, and of course there's still more. 739 00:37:29,840 --> 00:37:32,399 Speaker 1: It is quite a subject so Chris has been here 740 00:37:32,400 --> 00:37:34,080 Speaker 1: and I really appreciate you being here. Thank you for 741 00:37:34,120 --> 00:37:36,879 Speaker 1: coming in. I want to again throw it out there. Look, 742 00:37:36,920 --> 00:37:39,400 Speaker 1: if you need help with reverse mortgages, you want to 743 00:37:39,440 --> 00:37:42,000 Speaker 1: get more information, you want to get connected to Chris, 744 00:37:42,640 --> 00:37:45,440 Speaker 1: find out what you probably don't know, how this could 745 00:37:46,239 --> 00:37:49,560 Speaker 1: or maybe not work for you. Call right now. We're 746 00:37:49,560 --> 00:37:52,799 Speaker 1: here eight six six Protect. We can help you. Look 747 00:37:52,840 --> 00:37:55,759 Speaker 1: at this, look through it, eight six six Protect again 748 00:37:55,800 --> 00:38:00,399 Speaker 1: the number eight six six seven seven six eight three 749 00:38:00,640 --> 00:38:04,160 Speaker 1: two eight. I'd like to give a big thanks to 750 00:38:04,160 --> 00:38:06,680 Speaker 1: the Protect your Assets team for putting together a great 751 00:38:06,680 --> 00:38:07,160 Speaker 1: show today. 752 00:38:07,160 --> 00:38:07,760 Speaker 4: This was fun. 753 00:38:08,320 --> 00:38:12,160 Speaker 1: Go out and make the rest of your life the 754 00:38:12,680 --> 00:38:14,200 Speaker 1: best of your life. 755 00:38:14,400 --> 00:38:17,680 Speaker 2: Investment advisory services are offered through Liberty Wealth Management, a 756 00:38:17,760 --> 00:38:21,879 Speaker 2: registered investment advisor. This podcast is for informational purposes only 757 00:38:21,960 --> 00:38:24,080 Speaker 2: and should not be relied upon as a basis for 758 00:38:24,200 --> 00:38:27,400 Speaker 2: investment decisions. The strategies mentioned are not suitable for everyone. 759 00:38:27,480 --> 00:38:31,000 Speaker 2: The information expressed is not considered your specific situation or objectives, 760 00:38:31,040 --> 00:38:33,720 Speaker 2: and may not be appropriate for all investors. Past performance 761 00:38:33,840 --> 00:38:36,440 Speaker 2: is not indicative of future results. To better understand the 762 00:38:36,480 --> 00:38:39,240 Speaker 2: risk associated with investing and how it reacts to different 763 00:38:39,239 --> 00:38:43,080 Speaker 2: market conditions, Listeners should always consult with the qualified investment professionals, 764 00:38:43,120 --> 00:38:46,120 Speaker 2: financial advisors, legal or tax specialists and conduct their due 765 00:38:46,120 --> 00:38:49,359 Speaker 2: diligence before making any financial decisions or taking any action. 766 00:38:49,560 --> 00:38:51,760 Speaker 2: The legal information provided on the air is not intended 767 00:38:51,800 --> 00:38:54,479 Speaker 2: substitute for callers hiring their lawyers to advise them about 768 00:38:54,480 --> 00:38:58,360 Speaker 2: personal legal matters. Investments involve risk, and, unless otherwise stated, 769 00:38:58,440 --> 00:39:01,840 Speaker 2: are not guaranteed. Liberty Group LLC paid for the following program, 770 00:39:01,840 --> 00:39:04,239 Speaker 2: and the host views and opinions do not represent those 771 00:39:04,280 --> 00:39:07,040 Speaker 2: of the station or its ownership California Life Agent number 772 00:39:07,160 --> 00:39:10,440 Speaker 2: zero four eight five sixty nine. Persons engaging the services 773 00:39:10,480 --> 00:39:13,200 Speaker 2: of one affiliate of Liberty Group LLC companies should be 774 00:39:13,239 --> 00:39:16,800 Speaker 2: aware that each company is operated separately. You are listening 775 00:39:16,920 --> 00:39:19,240 Speaker 2: to the Protect Your Assets Radio and Networks