Could Reverse Mortgage be a Divorce Solution?
Reverse mortgages have always been centered on being a viable go-to option for retirees and elderly customers. However, a recent Washington Post article is questioning whether it could be a viable option when it comes to divorce as well.
"Benny L. Kass, a lawyer who pens a regular real estate column that appears in the Washington Post, Chicago Tribune, and other papers, explored a fictional scenario involving a divorcing couple in their 70s," according to ReverseMortgageDaily.
"The husband wants to move out of the home, and the wife intends to stay, but the $600,000 property still has a $200,000 mortgage."
It may seem silly to think that couples in their 70s are getting divorced at a fairly large enough rate to push scenarios such as this one, however, according to the report, the number of couples ages 65 and over who are breaking up has tripled from 1990 to 2015.
"Kass proposes a kind of 'double reverse' solution for the fictional pair: The wife can take out a reverse mortgage on the property and receive about $286,000, with $200,000 going toward paying down the existing mortgage on the home — and the remaining $86,000 helping form the husband’s down payment on a Home Equity Conversion Mortgage for Purchase transaction on his new condo," according to the report.
To learn more about the proposed idea for a double reverse mortgage divorce solution for older couples, click on the image above.