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Real Life Stories

Real life reverse mortgage case studiesAll of these stories are from actual DS Consulting clients. The solution for all of them was a reverse mortgage, but not just any reverse mortgage. We took great care to evaluate their situation and priorities, and structured a loan best suited to their goals with the lowest rate and least amount of cost.

Reverse mortgage case studies

Reverse Mortgage Case Study - JanJan was doing pretty well, all considered. She lived in a nice townhome near the beach and rode her bike every chance she had. Her 10 year battle with a failing liver finally got her to the top of the transplant list and a successful transplant in 2016. Her health was better than it had been for a very long time. However, her long road to recovery had taken a toll on her finances. Her small business has been overshadowed by technology so the steady profits were a thing of the past. The bankruptcy a few years back helped, but her modest pension and social security checks were still never quite enough. Her home was not as nice as most in the complex, but the cash was not there for most repairs and certainly not to remodel the outdated kitchen and baths. The Credit cards also have gotten a head of her again; even the minimum payments were tough some months. The mortgage payment was the big one, but always got paid first. If that was gone, then she could breathe easy every month. Why struggle day to day and not somehow use all that equity in her home?


Reverse Mortgage Case Study - Phil and TeriPhil and Teri survived by more luck than anything. His business with all those employees had been propped up by selling his long held investment properties for the last 10+ years. In total, about $1,000,000 had been poured into the business. No one knew, the kids thought the 25 year old company, dad’s pride and joy, was fine. But by 2012 all the properties had been sold and reality could no longer be ignored – then his heart attack. Once the well meaning kids stepped in to help, the pending disaster became apparent. The business was liquidated, credit trashed and all that cash was gone. All that remained was a couple hundred thousand dollars in equity in what was once their million dollar home. With no mortgage payments made in a year, all the legal tricks to stay in the property were exhausted. They had to say good-by to their home of 20 years and survive on the $2800 per month is social security. This was not really enough to pay rent and all the other necessities of an elderly couple. Their remaining cash would be large down payment of they purchased a home but even a small mortgage payment would be a hardship. It would be great if they could get mortgage for the purchase that did not require monthly payments.


Reverse Mortgage Case Study - Juan and JanetJuan and Janet were getting by, as long as those medical bills did not get much higher. With both approaching 80 and his recurring heart problems, they knew that the medical bills would only go higher. The last thing they wanted was their children sending them checks every month so they could survive. Their little house was worth more than they ever dreamed and they didn’t owe much. Rather than burden the children, they looked to their home equity.


Reverse Mortgage Case Study - JohnJohn was doing okay with his Social Security and income as a machinist, but being in his late 60s, he knew he couldn’t work forever. He had made some smart moves with real estate and now lived in a nice house not too far from the beach. However, he didn’t have much extra money at the end of the month and could not afford a single man’s social life or those home repairs that were long overdue. He hoped to be relaxing more and working less at his age and retirement was out of the question with the house payment.


Reverse Mortgage Case Study - Nick and SusieNick and Susie had a thriving construction business and carefully managed their financial affairs so they would have a comfortable retirement. However, life seldom goes as planned. After retirement they found themselves adopting and raising 2 young grandsons after the death of their daughter. The bank made it easy to get a large credit line on their paid off home as a “safety net” just to cover those occasional times when they might be short at the end of the month. As the years rolled by and the boys grew to young men, the cash shortages became more frequent and larger. the final nail was the purchase of a used car so youngest could get to his college classes on time. it ate up all but the last thousand dollars of the $250,000 credit line. Now where is their “safety net”?


Reverse Mortgage Case Study - Jorge and LizJorge and Liz were not even close to making it. The $1400 in Social Security was just enough to get by without their $900 mortgage payment. Fortunately, one of their 4 children persevered for a college degree and was well-established in her professional career. She faithfully, without complaint, paid the mortgage payment for the last several years. It saddened them to watch the other children gladly let her do it, never bothering to offer the slightest assistance. The family was penalizing her for her years of hard work and success. As parents, they needed to make it right, but didn’t know how.


Reverse Mortgage Case Study - DaveDave was laid off as an auto dealership’s parts manager and had been looking for work for about a year. As the months ticked by, he realized the chances of getting a job at 62 years old and partially disabled was close to zero. Although he never made a lot of money, he managed to pay off his house of 30 years. Twice divorced, no children and now forced into retirement, it seemed the only way to have a reasonable standard of living was to take advantage of all that home equity.


Reverse Mortgage Case Study - Jimmy and CarmenJimmy and Carmen were set. Although Al was permanently disabled, Dawn had invested in some rental properties years back and they were now generating a very respectable monthly cash flow. That income, combined with their Social Security, resulted in a comfortable living. However, they wish they did not have that $2000 per month mortgage payment. Without that, they could do more traveling, help the kids and grandkids a bit more and have no financial worries. The children would inherit the rental properties likely debt free, so they wondered why they should compromise their lifestyle now to give their children an even larger inheritance.


Reverse Mortgage Case Study - Jeff and JackieJeff and Jackie had a well thought out master plan. As teachers, they knew their pensions when they retired at 65 would be amazing. But they did not plan on Diane’s early onset dementia. That force them both into retirement long before expected. Her because of her condition and him to care for her. They would’ve still been fine if they could have adjusted their spending for their new lower income. But they didn’t. They continued spending money is if they still have 2 full-time incomes and eventually their credit cards were at their limit. They always made the mortgage payment on time, but that cannot be said for the credit cards. Eventually the debt collectors started calling and only then did they accept the reality of their financial position. The $2600 per month mortgage payment was the anchor around their necks.


Reverse Mortgage Case Study - RobertRobert could never figure out if it was bad luck or bad parenting but his 40-year-old son and 2 grandchildren had been living with him for a long time and there did not seem to be any end in sight. He felt forced to keep the big house and big mortgage so there was room for everybody, although he preferred to sell it and move into the smaller rental that was paid off. He also needed cash to pay for the deferred maintenance if he expected to get top dollar. His credit was shot and those tax liens were a problem, so getting a traditional loan on either property was not a viable option. Ideally, he would borrow on the rental and use that cash to fix up the big house for sale and help his son purchase a home of his own.

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