Generally people who are retired; but have little money in savings and not enough to live on with Social Security or other pensions, may be able to tap their home equity by getting a Reverse Mortgage. Initial fees are pretty high; but the outcome could be a monthly check to supplement income to live on. This option should be a last resort. What will happen when the owner(s) die is that presumably the home will need to be sold unless the heirs can pay off the debt.
While most people would like to stay in their homes until the end of life, the real question should be is it a smart thing to do. Homes require regular maintenance. Things break and will have to be repaired or replaced, which can be costly. Just maybe it would be smarter to sell the home and use the equity to live on. Depending on the persons age, renting in a 55 or older apartment complex, or moving into a senior assisted living community may be the best option. As people get older they just don't need as much space. A one or two bedroom apartment may be enough. And, depending on income, it is possible to get a low income benefit offered in many rental buildings, which will result in lower monthly rents. And, people with little income may be able to take advantage of Medicaid to pay for assisted living.
Ultimately, it is about quality of life. Spending a lot of money to maintain a home may not make much sense for someone over 75 years old. At Paragon Home Resources, we work with Seniors and their families to assist with life decisions. If you have a home to sell anywhere in the country, we can help you get top dollar for your home to give you the money you need to live a great life.
