In-Home Assistance for Elderly near Carlsbad: Reverse Mortgage Trouble

Reverse Mortgages In Home Assistance for Elderly near Carlsbad

Use Caution When Using Reverse Mortgages To Pay For In-Home Assistance For The Elderly In Carlsbad

Workers with in home assistance for elderly near Carlsbad and elsewhere have seen a growing trend in the finances of elderly Americans. The “reverse mortgage,” a powerful tool developed to allow seniors to borrow home equity before they actually sell their house, can create more problems than it solves if seniors use it incorrectly.

Study Shows Growth in Popularity

The reverse mortgage is becoming more popular as more Americans hit age 62. That’s the youngest age at which a home owner can take out a reverse mortgage, which is basically a loan against the equity contained in the home.

Normally, that equity is only available when the house is sold and the seller receives its full value. But, if a senior wants to stay in his or her house, a reverse mortgage allows them to use some of that money for expenses.

Paying For In Home Assistance May Not Be The Best Use of Reverse Mortgages

Sometimes seniors take out a reverse mortgage without fully understanding the requirements of the loan. They often stop paying property taxes and insurance premiums, placing their ownership of the house in jeopardy. Or, they forget that the loan must be paid back later with interest, and place themselves in grave financial danger.

Using Up a Valuable Resource

If a senior takes out a reverse mortgage immediately at age 62, that loan may not be available later on when it’s really needed—after a serious injury or other financial crisis. When used correctly, this financial tool is an important safety net, helping to pay for unexpected needs like in-home assistance for the elderly.  

In Carlsbad and elsewhere, though, a lack of understanding on the part of many seniors can make it an irresponsible choice that endangers their future. If you are considering using this approach to help your elderly parents with monetary needs, make sure you know exactly how it works and what repayments will be required.

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Tim Colling

Tim Colling is the founder and President of A Servant's Heart In-Home Care, which provided in-home caregiving services in San Diego County, and also of A Servant's Heart Geriatric Care Management, which provided
professional geriatric care management services and long term care placement services in San Diego County. Tim has more than 30 years of experience in management in a variety of industries. He held a Certified Care Manager credential from the National Academy of Certified Care Managers. Tim is also a Certified Public Accountant (retired), and received his Bachelor’s Degree in Accounting from California State University at San Diego. In addition to writing blog posts here for the Servant’s Heart blog, Tim also is a regular contributor to HealthLine.com and to FamilyAffaires.com as well as blogs of other eldercare services provider companies. Finally, Tim is also the president of A Servant's Heart Web Design and Marketing, which provides home care marketing as well as website design and online marketing for those who serve the elderly and their families.

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