How a senior can make extra money each month?

Want to know how a senior can make extra money each month?

We all know that it is VERY hard for a senior citizen to find a job. Even though they are the best of the best employees, companies will not hire them.

So how do you make extra money? I can show you how in real estate. Even in this market the advantages of a senior citizen is that you can use a reverse mortgage to purchase a home.

I can show you how this can turn a government entitlement into extra cash each month. Even better, you will be creating a large tax deduction for your estate in following my program with a reverse mortgage.

If you need extra cash, all you need to do is call. I am ready to help you get a better life.

bob@az62.com

714-331-1486

Are we at the bottom of the economy?

Do you think we are at the bottom of the economic downturn? Do you think that home prices are at the bottom of their market? Do you think the economic boom is just around the corner?

Please think. Look at the current sales for companies that are the backbone of our country's economy. Are the airlines in great shape? Are the auto makers in great shape? Are the manufacturers in great shape?

Did you know that most of the growth in recent Profit/Loss statement is due to the drop in the value of the dollar?

Please have the sense to lock in your home's value now with a reverse mortgage. If things get worse you can count on the government back reverse mortgage to keep you in your home and to keep you dollars in your pocket.

It is a senior entitlement that you NEED to take advantage of now.

bob@az62.com

714-331-1486

Great Stories of Success

We are enjoying the great stories of reverse mortgage successes of our past clients.

Many of them, who did a reverse mortgage with us in 2005 and 2006, are now singing our praises. They got in when their homes were at the top of the market and have seen their credit lines grow significantly over the last two years.

They are sitting on credit lines that are worth MORE than their homes and enjoying every minute of it. They don't care if the market goes down further, they are protected.

Bob@az62.com

714-331-1486

Common Sense about Value

Common sense test....

Do you know if the housing market is going to go up over the nest 10 years?

If you answered yes, then no need to read any further.

If you answered no, congratulations, you passed the common sense test. Common sense says that by studying the past, you can tell that a 10 year period is too short a time to guarantee growth. You NEVER know what will happen.

So what do you do if you can get guaranteed growth of the homes value over time?

Take it. A reverse mortgage, for those who own their homes and do not need to take any money out of the equity, establish a credit line that grows each year.

The interest rate on the growth of the credit line is ALWAYS 1/2% MORE than the interest on the loan. That means that in todays market the interest rate is just above 4%, but in a bad market that interest can jump to 6 or 7%.

Imagine knowing that your home value is increasing, because your credit line is increasing, even though the housing market has stayed flat, or even lost money.

bob@az62.com

714-331-1486

Manufacted Homes

If you are 62, and own a manufactured home you need to contact me.

HUD has established some very attractive entitlements that apply to single family homes, condos, multiple dwelling units and MANUFACTURED HOMES.

Because manufactured homes have a history of depreciating over time, the entitlement for manufactured homes is especially beneficial to the senior.

Call me to find out more.

bob@az62.com

714-331-1486

Great Retirment Home Planning

Are you planning on looking for a retirement home this summer or fall. Here is a great way to plan for your future and a great way to conserve your current assets for a better retirement life.

Go ahead and start looking. The prices of homes are good this year for buyers and there are deals everywhere. Don't only look at used homes that are on the market, look at developed communities like Shea Homes Trilogy in Arizona. These are brand new homes in a community that provides you all the fun that fits your lifestyle and helps keep you active.

Once you have chosen a home, go ahead and get your best deal, but remember that you are buying a home with a different plan. That plan is to buy the home and then get more than half the money back. Thats right, buy the home and get more than half the money back with a reverse mortgage. That means that you can life the life you want, without any mortgage payments, and only pay less than half the price for the home.

Baby Boomers have all the luck.

Bob

bob@az62.com

623-214-6663

Financial Planners, Estate Planners and CPA's

Its time for you to visit the entitlement of reverse mortgages.

This is a an entitlement for seniors with Congressional Approval and Presidential Assignment to HUD.

If you still think that reverse mortgages are just for seniors who are in danger of losing their home then you are doing all of your clients a disservice.

Reverse Mortgages have a benefit for the vast majority of seniors in our country and it is open to both citizens and legal (resident) aliens.

Reverse Mortgages are good tools for estate planning, retirement planning, and even as a source of increased cash flow.

What you don't know about reverse mortgages IS hurting your clients.

Bob

bob@az62.com

www.az62.com

623-214-6663

Over 62, Homeowner, and a Slave to the Housing Market

Its time to educate all the Baby Boomers who are just entering the age where then can get a reverse mortgage. If you are just turning 62 and own your home, you are now in a position to make a decision on whether or not you want to be a slave to the housing market.

If you own your home, then you are just sitting on that equity. You are not having it work for you. You have a long life ahead of you and you have no control over the activity of the housing market. It may go up, it may go down, or it may do both. You lose, or gain, equity according to that market and you don't have any control over it...until now.

A reverse mortgage is not just for those Baby Boomers over 62 who need extra money now, or need help with a mortgage payment if they still have a mortgage. Its a great tool for Baby Boomers who do not need the money and own their home.

With a reverse mortgage the equity you receive from this entitlement is placed into a line of credit that grows at an interest rate 1/2% more than the interest rate of the loan. That means that over time your credit line will grow to an amount greater than the current value of the home. The higher the interest rate gets, the faster your credit line will grow!

Why do you want to be a slave to the real estate market instead of being in charge of your own homes value?

Bob

bob@az62.com

623-214-6662

Arizona KFNX Radio AM1100 Saturday 10am-11am

Want to know more about reverse mortgages?

Arizona now has its own radio show strictly on reverse mortgages and senior citizen entitlements. Its the, “Just Call Hall Show”.

Every Saturday from 10am to 11am Arizona time, Hall will be talking about reverse mortgages, interviewing experts in the fields of reverse mortgages, senior citizen issues, senior entitlements, and other senior issues.

Its the Just Call Hall show and its your chance to call in and talk about reverse mortgages. We really care about seniors and even if you have trouble talking over the phone, we can talk with you off the air and bring your issue up on the air.

Be sure to listen ever Saturday Morning.

Senior Security

If Congress had chosen a different name for Reverse Mortgages when they took over the reverse mortgage process and made it into law, maybe it would be easier to explain it to seniors, tax accountants and financial experts.

Its funny how a name can instantly close the mind of a person, and block them from wanting to learn the truth. If Congress had named the program, “Senior Security” when they made it law, I am sure the education process would be much easier.

Reverse Mortgages ARE senior security. They allow seniors to step away from the market volatility of housing and real estate and to step away from the volatility and risk of dealing with banks and traditional loans.

A Reverse Mortgage gives a senior the security of knowing that they will own their homes for the rest of their lives, and gives them the access to the money they “saved” in their home over their lives.

The credit line has government guaranteed safety and growth with an interest rate that is more than the interest charged on the loan. Even if the senior has NOT paid off their home, as long as they have worked hard enough to have enough equity to qualify for their age, this senior security gives them the right to say, “I have had enough of monthly payments. It is time for my retirement, and for me to enjoy life. I choose the security of a reverse mortgage.”

Bob

bob@az62.com

623-214-6663

www.az62.com

Reverse Mortgages and Your Tax Bracket

Are you surprised at how much it costs to take money out of the IRA’s that you established so many years ago? Does it make you mad to know that even though you did the right thing and saved money in retirement accounts so that the government could be sure that you did not need to be taken care of when you were a senior citizen, now they want to tax you on it? Take a look at a reverse mortgage.

Why? Because a funds received from a reverse mortgage are NOT taxable।

If you wanted to purchase something that costs over $78,850, and used your IRA to fund that purchase,(EVEN IF YOU DID NOT HAVE A DIME OF ANNUAL INCOME), you would now fall into the 28% tax bracket.

This means that you will be paying, in addition to sales tax, an income tax of $22,078 on that purchase.

If you got a reverse mortgage and made that purchase with the funds from your reverse mortgage, you would not pay one dime in additional income tax. That’s right….ZERO income tax.

What’s even better is that you can pay that money back into your reverse mortgage whenever you have extra cash.

The more you are educated on a reverse mortgage, the more you will understand that it is an entitlement to seniors.

Bob

bob@az62.com

www.az62.com

623-214-6663

Basic Living

I have given many reasons why seniors with plenty of cash should get a reverse mortgage, why seniors who are just turning 62 should get a reverse mortgage and why seniors who want a retirement home need to get a reverse mortgage. Now let me tell you about the seniors that changed my life and brought me into the business of selling reverse mortgages.

One new outfit a month at a resale shop : $20

One good meal a day prepared by someone else, (eating out or brought into the home) $15

A new book each week $10

A visit to the beauty shop each month $30

One trip a year to see some of the grandchildren $1000

One night out at the movies each month $20

These are all things that are given up by millions of seniors in the United States who have to survive on Social Security alone. Social Security was NOT meant to be a retirement fund. It was meant to be in addition to other retirement savings.

I do this job for the seniors who own their home, but do not have additional savings to add to their retirement. To be honest, I could care less about the heirs, the children, or the estate. I know that the reverse mortgage does take care of the estate, but in these circumstances I only care about getting the senior back into living. These seniors deserve the things that make life enjoyable.

They have earned it.

Bob

bob@az62.com

www.az62.com

623-214-6663

The Retirment Plan

So what really is the smartest way to retire with a home?

HUD has developed some very good records of the Reverse Mortgage Program since they took it over. In addition, third party surveys and polls have established a very positive track record for customer satisfaction when it comes to the owners of reverse mortgages. Could it be we are seeing a trend of intelligent retirees changing the way they see how to retire with a home?

Traditional thinking is that you work for 20 to 30 years, pay off a home and live in it for the rest of your life. Today less and less retirees are staying in the home that they lived in during their working years. They are headed south to the sun.

Since these retirees are in the market for a new home, the ones that do the research and actually think their way through the process are faced with a decision. Should I park the cash for the total amount of the purchase in the home and not touch it for the rest of my life, or should I take advantage of a government entitlement, a reverse mortgage?

Example: Arizona home valued at $250,000. Retiree at age 62.

Old way: Purchase the home for $250,000 and live with no mortgage payments for life.

New way: Purchase the home for less than $125,000 and live with no mortgage payments for life and invest the other $125,000 in investments that will both grow and provide me with additional monthly income.

In this industry we hear people tell us that reverse mortgages are “bad” , or “too expensive”. My question is, “Why would you park all that cash and not have it working for you?”

Bob

bob@az62.com

www.az62.com

623-214-6663

Lump Sum, Monthly or Line Of Credit

If you are finding it hard to understand exactly how a reverse mortgage works, and whether or not it is a good thing for seniors, or a bad thing, simply look at the options and watch the equity.

Seniors have a choice of taking cash from a reverse mortgage as a lump sum, as a monthly payment, or leaving the cash in a line of credit. The monthly payments can be taken as a Tenure monthly payment (payments for life), or as a Term monthly payment (The senior selects the amount they get paid). It is also important to note that the senior has the choice of any of these options, or a combination of any of these options.

Once you have decided which option you choose, simply watch the home equity. The home equity is listed in the “Remaining Equity” column of every reverse mortgage amortization schedule.

Just like every other mortgage, a reverse mortgage has an immediate impact on the remaining equity of the home. Take out a little, your equity goes down a little. Take out a lot, and your equity goes down a lot.

The important factor is what happens to your home equity over the long run. This is what all the negative press about reverse mortgages claim. They all say that you lose your home in a reverse mortgage. Actually, the opposite is true. When you take a look at the remaining equity column over the life of the loan, you will see that in most cases the remaining equity actually grows. That makes this loan is the best product available to a senior in the mortgage industry.

Why does this happen? It happens because the interest rate is tied to the treasury bill. It is incredibly low. Even though you are not making a payment, your homes appreciation will typically grow faster than the loan interest rate.

Bob

bob@az62.com

www.az62.com

623-214-6663

The Senior Investor

Reverse mortgages may give the term "Senior Investor" a whole new meaning.

Many people do not know that a reverse mortgage is not just for single-family homes. A reverse mortgage can also be used to acquire a condo, a manufactured home, a duplex, or a quad.

Can you imagine being able to purchase a quad (4 unit building) for less than half price, with no payments for life????

That's the entitlement of a senior citizen with a reverse mortgage. A senior can purchase the building, place three renters in the building (one in each one of the units that they are not living in), and live in the fourth. Remember, the reverse mortgage means that there are NO mortgage payments. That means that other than the homeowners insurance and property taxes on the building, that rent roll goes straight to the senior's pocket. That's right, the cash flow from the three renters goes straight in the senior citizens bank account and they themselves get to live in the fourth unit with no mortgage payments.

Imagine being 62 and having that income and benefit for the rest of your life!!!

Still think reverse mortgages are bad?

Bob

bob@az62.com

www.az62.com

623-214-6663

I don’t need the money

I have too much money and don’t need a reverse mortgage? What are you thinking about? A reverse mortgage is NOT just for people who need the money now.

A gentleman told me that he had hundreds of thousands of dollars in the bank and that he did not want a LOAN on his home. He also told me that he did not like the fact that the reverse mortgage I was showing him was an adjustable rate with a cap of over 13%. The last thing he told me was that in 1980 gold was at $850 an an ounce and that soon afterwards, the interest rate jumped tremendously. He told me not to tell him that the Treasury bill +1.5% would stay below 6%.

Here was my reply.

I asked him if, in 1980, homes were skyrocketing in price. He responded, “No, they lost value”. So I told him just so he understood…”What you are telling me is that the interest rate was skyrocketing and homes were staying the same price or even depreciating. He responded, “Thats right”.

So in the near future according to his estimates, homes will not rebound in value, and the interest rate will skyrocket. This is the perfect scenario for people who get a reverse mortgage and KEEP the equity of their home in the credit line.

They are protected from that economy. The credit line will be growing at the higher interest rate and it will pass the value of their home in a very short time. It will then continue to grow in value past any valuation of the home. THIS IS PROTECTION FROM THAT TYPE OF ECONOMY.

A reverse mortgage is PROTECTION from radical economies like we are seeking today, and very possibly in the future.

Bob

bob@az62.com

www.az62.com

623-214-6663

The credit line and new windows

The life of a senior citizen is one of uncertainty. You are on a fixed income and surprises are around every corner. Unexpected medical bills, family emergencies, or even a new set of windows are just around the corner.

A senior has one of three choices. They can pay for the surprise from their savings, pay for it with an equity loan, or pay for it with a reverse mortgage.

Your savings is your life's work. You have thought long and hard on each decision about savings and now you seem to be tapping that source more and more each year.

An equity loan is a new debt with new payments. This is a monthly payment that reduces your monthly budget each month. This is also a great risk. If you cannot make this payment, YOU LOSE YOUR HOUSE.

The last option is a reverse mortgage. A reverse mortgage sets up a credit line that grows at a great rate. You can tap into the credit line, then watch it grow back to the original amount.

Its a great way to set a boundary for your budget. Leave your savings alone, keep you monthly income the same, and simply use the equity in your home for your unexpected needs. The credit line always grows and eventually replenishes the amount you took out. If you find that you are tapping the account more and more, you will reach a point at which the credit line is gone. Its a sign that you have spent too much money, but not an emergency that will cost your your lifestyle. If this were to happen, you still have your savings, and you can discuss a new plan with a financial expert. You won't wake up one day and find yourself out of a home and out of money.

PLUS: You can always use the credit line as a great place to put your own savings for a rate that is government guaranteed and grows at 1/2% more than your loan interest.

Bob

bob@az62.com

623-214-6663

Subordination of the Second Mortgage

Here is another reality check. The reality of today is that there are alot of seniors who have a 1st mortgage for about half the value of the home, or less, and a 2nd mortgage for the remaining equity.

Unfortunately, these seniors are seeing the interest rates on their second mortgage jump by more than a few points and many of them cannot afford the increase in monthly payments because they are on a fixed income. The equity loans sounded good at the time, but the loan officers were not being honest with the senior about the impact of an increased interest rate. So today, when they go back to the bank to try to refinance, they are caught in an awful trap. The value of the home has dropped, and the bank will not refinance the home.

Here is what the seniors need to know. Get the bank to subordinate the 2nd mortgage and get a reverse on the 1st mortgage. This way the senior will have manageable payments (since they are only paying on the second mortgage). Depending on the LTV of the 1st mortgage, the senior may even be able to put a couple dollars in the credit line or in cash in their pocket.

This is a difficult process since you need to educate the bank about the process. You should only have someone who is highly educated in reverse mortgage conduct this process on your behalf.

We have that education and experience. If you are caught in this situation, give us a call.

Bob

bob@az62.com

www.az62.com

888-277-4990

Being Tied To The Government’s Credit Rating

Being Tied To The Government’s Credit Rating

When Sub Prime loans were first used, they were a very positive instrument for helping fill a need. There were people who did not have the credit score for a standard loan, so they were given loans with a slightly higher interest rate than the regular loan. It was both a punishment for not having paid all your bills on time, and insurance that the bank would still profit from the new line of business.

The day that balloon payments, and introductory rates came into the sub prime market, was the day that the Sub Prime loan went from a good instrument, to a bad one.

When seniors see the incredibly low rates that are currently being offered on reverse mortgages, the often think that they are in a “bait and switch” situation, just like the sub prime loans. Reverse mortgages are not introductory priced loans and they do not have balloon payments. Reverse mortgages are priced according to the government’s credit rating….the Treasury Bill. The interest rate on reverse mortgages is just one of the ways that they are being regulated by the government.

That is why reverse mortgages are an entitlement for senior citizens in this country and not just some loan that is available. Once you learn, you will understand the benefits of participating in the entitlement.

Bob

Bob@az62.com

www.az62.com

623-214-6663

What is a primary residence?

What is a primary residence?

The HUD HECM reverse mortgage, which is the most popular reverse mortgage on the market, requires that the home be your primary residence.

What does that mean? It means that you are to live in that home for at least 6 months and 1 day each year.

How does HUD verify this? They send you a reply card every year by mail to that residence. The card asks if you still live at that residence, and asks you to sign the card and send it back. That’s it. One card a year.

The reason for the term “primary residence”, and the requirement that you live in the home for at least 6 months and 1 year is to make sure that you are not able to get two reverse mortgages on different homes and claim them both as your primary residence.

People also ask me about what happens when they have to go into temporary care for a couple of months. Can they still have that property as their primary residence? Yes.

The program allows you to enter into temporary care as long as you are back in the home within a year. That’s it. You can be gone for as long as you need, as long as it does not exceed one year. Once you are back in your home, everything resets, and you are able to go away again for care as soon as you need it.

Bob

bob@az62.com

www.az62.com

623-214-6663

This entry was posted on Frid

Time to change the definition of a house.

Time to change the definition of a house.

Reverse mortgage brokers run into the same issue with families over and over. Its the issue of the, “family home”. No matter where your parents live, no matter how long they have lived there, and no matter what shape that house is in, it is “the family home”.

The family sees a reverse mortgage as an attack on the family home. They worry that signing a reverse mortgage means that the family loses the home. It is simply not true.

Time to change the way you think about your parents house. Your parents house is an asset that can work for them the rest of their life. Your parents house is not going to be the same once they pass away. It will just be another asset that you will be selling to settle the estate.

A reverse mortgage is set up to help them while they are still able to live a better life, and to help you once you have to manage the estate. Here are some things you may NOT know about a reverse mortgage.

1) You do NOT lose the home when you get a reverse mortgage.

2) Over a period of time, a reverse mortgage becomes the cheapest loan instrument on the market. There are up front costs, but the interest rate is much lower than any other loan.

3) The estate has an entire year to settle the debt on the home or decide to sell the home, without any payments.

4) This is a government entitlement for seniors. It guarantees that they get every dollar that they are entitled to, and secures their home against a foreclosure that can happen with a regular equity loan.

5) A reverse mortgage can be paid back, with as much or as little as you want to pay, whenever you want to pay, without any penalties. If you do not want to pay any payments on the loan for the rest of your life, thats OK too.

The truth is that the majority of the time the home is sold by the estate and the cash is split up among the heirs. If your parents home has been in the family for hundreds of years, and it the most important asset of the family, then maybe you should make sure no loans are ever taken out on that property. But if your parents home is a new home they just bought, an older home that none of the kids is planning on moving into when they pass, or just an average suburban home, you need to let them get a reverse mortgage. It will make your life as a executor of the estate much much easier to manage. It will also put money into your parents pocket and give them a better life.

Bob

bob@az62.com

www.az62.com

623-214-6663