Reverse Mortgages were specifically designed for house-poor Senior Citizens. To this end, Sales Promoters often target senior citizens needing to supplement their meager savings, Pensions and Social Security Benefits, because they desperately need help paying their bills.
“Under this sort of financial pressure, says David Selig of Selig and Associates, many a senior has been swindled.”
Conversely says Selig, knowledgeable Tax attorneys, and practitioners recommend successful people, ages 62 and older, take advantage of the existing equity conversion loophole.
Specifically, establish a reverse mortgage line of credit which grows in value each year. Moreover, since the only security is the house, any excess funds are treated as a non-recourse loan.
For example, let's say your home is worth $600,000 and you establish a Home Equity Conversion Mortgage line of credit with a present credit line of $300,000. In 10 years, your available line of credit could far and away exceed the value of the home. At that time, you may withdraw all of these funds and never repay the shortfall.
For additional information contact David Selig, Federal Tax Practitioner and Attorney Bradley Dorin at (212) 974-3435.
0 comments:
Post a Comment