Mortgage solves seniors’ cash problems

Tax-free income hard to beat

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Are you or someone you know a senior citizen homeowner who is "house rich" but "cash poor?" If so, a reverse mortgage can solve the problem if the homeowner is at least 62, needs tax-free income with no monthly payments, and plans to stay in his or her house or condo at least five years. WHAT IS A REVERSE MORTGAGE? Just the opposite of an amortized mortgage, which requires the borrower to make monthly payments over 15 to 30 years, a reverse mortgage pays money to the borrower whenever needed and requires no repayment until the homeowner sells the home, moves out for longer than 12 months or dies. Purchase Bob Bruss reports online. When one of those events occurs, the reverse-mortgage principal and accrued interest "matures" and becomes payable in full. If the homeowner dies, the heirs can sell the home, pay off the reverse mortgage and keep the remaining equity. Or, if the heirs want to retain the residence, they can obtain a new mortgage to pay off the reverse mortgage. C...