Protect yourself from what's coming!

With all the money the government is spending is a crash is coming?

There are repercussions for the actions of today's government spending and it will most likely hurt you more than help you!

As the government gives more and more money away the Dollar gets weaker and weaker. To entice investors to invest in the United States the government will have to raise interest rates, this will fuel inflation and in a down real estate market the economy may crumble. I am sure many of you remember the days of Jimmy Carter and interest rates well above 10%, I believe we will see those days again soon. Hopefully you have not lost a lot of your worth in the stock market, because as inflation kicks in you may need to access those Dollars. What can you do to protect yourself from what's coming?

A HECM may be the answer. Through a Home Equity Conversion Mortgage you can set up a credit line that grows year by year (guaranteed by FHA) giving you access to more money. This may be the cure for all of this for many American Homeowners.

Why should you do this now versus waiting until the problem presents itself?

Well actually you should have done this 3 or 4 years ago when home values were at an all time high and Interest Rates were at an all time low, but we won’t fault you for that, you may not have met anyone who has explained this to you like we are now.

Here is why you should do it now. Home values have not totally dropped yet so you still may have some equity to work with. A HECM is a loan based on the equity you have in your home so you will need to have some, if home values continue to drop it you may be too late. Interest Rates are on the rise, as Interest Rates rise the amount of money you can qualify for goes down, there may be a point where you will not qualify for any money under this program, we are already seeing that a lot of Homeowners can't get the HECM and if you are waiting until there is a problem it may be too late.

It is a painful thing to watch, when I see someone wait until there is a problem and there is nothing I can do to help... It really does hurt me to see people in that situation, knowing that I could have helped them if we would have crossed paths earlier, assuming they would have listed to what I had to say.

Now is the time to act. If you believe any of what I am predicting you should look into how we can help you. I urge you to get in touch with us... You never know when it may be too late.


Riley Bangerter, VP, CRMA
WSB Mortgage Services
www.reversemortgage4u.com
866-309-6626

How The Reverse Mortgage Loan Will Effect My Taxes And My Heirs Inheritance!

Lets touch on the tax issues first.

I am not a tax professional so please consult your tax preparer before making any tax decisions.

With that said; A reverse mortgage is a loan, a very unique loan.

As a result, the proceeds from a reverse mortgage loan are not considered taxable income by the IRS and it will not have an effect on your social security and the interest on a reverse mortgage is tax deductible.

However, the tax deduction can only be claimed in the year in which the interest is repaid.

As a result, the size of the potential tax deduction builds up until the year when the reverse mortgage loan is repaid by the homeowner or their estate.

The reverse mortgage loan has no effect on your obligations to stay current on your property taxes, homeowner's insurance, etc.

So, the homeowner must continue to pay these costs, you could request that these costs be put into an escrow account with the reverse mortgage, but this practice is rare due to the size of the equity that is set-aside.

What about My Estate and My Heirs Inheritance?

The big concern for homeowners considering a reverse mortgage is making sure that their heirs are not saddled with debt and will inherit the home.

When the home is worth more than the reverse mortgage balance your heirs can refinance the reverse mortgage into a traditional mortgage and keep the home or the heirs/estate can sell the home, pay the balance of the reverse mortgage, and keep the remainder of the home's value.

The heirs/estate have six months to sale or refinance the home with the addition of two 90 day extensions-plus if needed, giving your loved ones one year-plus.

For example:

* A $300,000 home is inherited by the estate with a $125,000 reverse mortgage balance.
* The heirs decide not to keep the home.
* The heirs sell the home for $300,000, pay the lender $125,000, and pocket $175,000.

When the home is worth less than the reverse mortgage balance the heirs or the estate have no obligation.

The home can be turned over to the lender who will sell the home to repay as much of the balance as possible or the heirs can refinance the reverse mortgage into a traditional mortgage and keep the home.

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