"Our home means so much to us and we did not want to sell it during a time when prices were so low but we felt trapped since bills were piling up," said Ms. Collick. "When we heard about the Senior Lending Network loan program, we decided to get a reverse mortgage so we could stay in our home and have the cash we needed to live comfortably. So far it has exceeded our expectations."
According to Housing and Urban Development (HUD) data there are approximately 27 million senior homeowners nationwide. Further, an AARP report indicates that 89% of older Americans want to stay in their residences for as long as possible.
"For most people, their home is their best financial asset," stated David Peskin, CEO of Senior Lending Network. "Under the pressure of the current economy, all homeowners have seen their properties appraise at lower values and no one wants to sell their home at this point in the cycle when, over time, home prices historically increase in value. Reverse mortgages allow the homeowner the flexibility to wait out this storm."
A reverse mortgage is a product generally geared to people 62 and older. It allows seniors to obtain cash by tapping their home equity while remaining in the comfort of their own home.
Tom Kelly, a nationally syndicated newspaper columnist and author on books regarding reverse mortgages and financial services, also commented, "In the current economic climate, reverse mortgages, most of which are non-recourse loans that are backed by the government, offer a ray of hope for seniors. Not only might they be the best financial solution for the senior but emotionally they also offer the opportunity to stay in the home and live a comfortable life without adding the uncertainties of moving. This is a rare opportunity these days."
