Seniors: it’s OK to think in reverse

Home Equity Conversion Mortgages grow

Learn the New Luxury Playbook at Luxury Connect | October 18-19 at the Beverly Hills Hotel

"You won't really know unless you ask." The popular phrase has been used often in many households -- especially when kids seek an answer for being left off a team, when wage earners wonder about a possible salary increase, or if carpool drivers can shift to a different day. The question can also spark critical conversations in senior households when times are tough and cash is tight. For example, will a lender with a second mortgage on a property "subordinate" its position so that a Puget Sound, Wash., couple could obtain a reverse mortgage, avoid foreclosure, and remain in the home they built 40 years ago? While there is still no hard data to show the number of reverse mortgages that are helping seniors avoid foreclosure, recent local examples continue to support other national anecdotal evidence. The local case involved an 81-year-old couple who took out a second mortgage two years ago to help their daughter buy a home. The daughter agreed to make the...