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Jack and Sara Pouncey, ages 77 and 79,
respectively, have lived in their modest
three bedroom farmhouse for over 45 years.
They built their house from the ground
up and couldn’t imagine living anywhere
else.
Jack a part-time farmer, raising pigs
and corn as well as a road construction
manager; he worked for over 50 years.
Sara worked at a local textile plant and
retired after 30 long years of service.
Since then both have retired and enjoy
relaxation, traveling and spending time
with their many grandchildren.
“My parents have worked many long days
and they deserve to relax and enjoy their
golden years,” said Linda Bieri, the oldest
of four children raised by the Pouncey’s
who also acts as Power of Attorney for
the couple.
In 2005, Sara was diagnosed with stomach
cancer and had to endure several debilitating
surgeries. “This put a strain on their
financial capabilities because of expensive
medical prescriptions as well as other
expenses associated with having cancer.”
Bieri added.
Not long after Sara’s diagnoses, Jack
started to become very ill due to stress
and old age. Jack had to undergo heart
surgery, which in turn added to more expensive
bills and countless doctor appointments
for the both of them and sometimes out
of town.
“As their Power of Attorney, I feel that
it is my duty to responsibly use their
money to best suit their personal needs.
I’ve researched several financing options
for them but nothing seemed to work best
for the position they were in until I
came across an article about reverse mortgages
and how it can benefit people over the
age of 62,” says Bieri.
“After careful research and long talks
with my parents we all felt that this
type of loan would best suit their financial
needs,” added Bieri. Using the proceeds
from the reverse mortgage has allowed
the Pouncey’s to be able to resume to
their normal lifestyle.
Paying her parent’s prescription drug
bills isn’t as much a chore as it once
was and now they have extra money for
traveling and spending time with their
grandchildren.
Bieri recommends the reverse mortgage
to any adult who has to care for their
parents but don’t have the financial ability
to do so. A reverse mortgage will pay
them for as long as they live in their
house without ever having to pay back
the loan.
“It has been a blessing for my parents
and now they are back on track to enjoying
the rest of their lives together,” she
added.
If you speak with Charles Lombard, 67,
he’ll tell you that getting a reverse
mortgage two years ago was the best financial
decision he ever made.
After retiring one year ago he realized
that social security and his teachers
retirement pension wasn’t giving him the
financial freedom he’d like. So he took
a job with a local grocer bagging groceries
and stocking items on shelves. “I liked
working at the local U-Save grocery because
it provided me with a little extra income
and gave me something to do during the
day. On the other hand, working 40-plus
hours a week started to take a toll. At
times there was a lot of heavy lifting
and my back hurt from standing all day,”
says Mr. Lombard.
To make ends meet and to enjoy his retirement,
Charles looked into getting a senior home
loan called a reverse mortgage and found
that it was just what he was looking for—security.
Soon after receiving his reverse mortgage
loan, Charles had paid off the existing
balance on his home and set up the loan
so that it would pay him a certain amount
every month. He also opened up a $15,000
line of credit through this loan program,
which he uses sparingly.
“The line of credit has really helped
me out. Also the money small amount of
money that I do spend gets replenished
because of the interest that I earn. Its
truly an amazing program,” says Mr. Lombard.
More importantly, the fixed monthly payments
have allowed him to slowly cut back on
his work hours at the local grocery. “I’ve
gradually cut my work schedule in half
down to about 15 or 20 hours a week,”
he said, “so now I have more free time
for myself and my back isn’t killing me
anymore,” added Mr. Lombard.
“I think next week that I might take that
long fishing trip I’ve been waiting to
go on for about the past five years and
actually enjoy every minute of it,” he
said.
For 45 years, Judy Robinson, 73, has
lived in the same single family home that
she and her husband, James, built together
in south Florida. “I can remember building
that house, it seemed as if we’d never
finish,” Ms. Robinson fondly remembers.
“We started building it in June (1961).
It was so hot that summer, it seemed as
if we were living in a sauna.” She added:
“To save money for building expenses we
ate a lot of hamburgers and mac n’ cheese.
To this day it’s still hard for me to
eat mac n’cheese and unfortunately, its
one of my grandchildren’s favorite meals.”
Before moving to south Florida to build
their dream house in 1961, the couple
lived near Chicago, where Judy worked
at a local day care center and James worked
full time for Old Republic, an insurance
company. “We had already had two children
when we decided to move so I became a
housewife and James got a new job in the
insurance industry.
James and Judy raised three children and
seemed to be living the “American Dream”
when, in August 2002; he suddenly passed
away before retirement. I lost my husband,
his insurance and most of his retirement
pension. “What little pension I did get
didn’t last very long and bills were starting
to mount up on the dining room table,”
Ms. Robinson said.
To make ends meet, she lived off her Social
Security and help from her three children.
As time went on, Judy wanted to be independent
again and not have to rely on her children
for every little thing that was a major
purchase. “I had a horrible time paying
for things, especially medicine. It seemed
as if my life was worthless without James
and I didn’t want to worry about everything
so much all the time,” Ms. Robinson said.
She was reading the paper on a Sunday
afternoon when she came across an article
in the Miami Herald that would change
her life forever. The article was about
an elderly man that was in the same financial
position as Judy and how a reverse mortgage
helped to solve all his problems by using
the equity in his house. “I felt as if
this article was too good to be true.
At first I was skeptical since this was
the first time I had heard of this type
of loan and it was for seniors,” she said.
Soon after reading the article, Ms. Robinson
found herself speaking to the National
Reverse Mortgage Group (NRMG), which in
turn provided her with a lender that specializes
in reverse mortgages. “The NRMG was so
helpful. They answered all my questions
and made me feel comfortable about how
the process really works. They even sent
me a video explaining everything in detail,”
Ms. Robinson said.
Ms. Robinson closed on her reverse mortgage
in October 2005, and is currently receiving
$700 a month in extra income, which is
an increase of 75% over her previous income.
She also has the option to establish a
line of credit for bigger purchases such
as home repairs if she so chooses.
Overall, Ms. Robinson’s life has changed
dramatically for the better. She has no
problem paying for her prescriptions now
and isn’t stressed out financially. “I’m
so thankful everyday that I got a reverse
mortgage. I can now spend more time with
my grandchildren instead of sitting at
the dining room table staring at bills.
I now enjoy life the way it was meant
to be enjoyed thanks to the National Reverse
mortgage Group,” she said.
Al Christo’s town home gives him money
everyday to live and he doesn’t even have
to pay it back.
It’s a new game plan that more and more
seniors are exploiting: a reverse mortgage.
Christo, 76, applied for a reverse mortgage
about two years after his wife suddenly
passed away. He was struggling to maintain
the lifestyle that him and his wife were
use to. He contemplated selling his townhouse
but didn’t want to live anywhere else
plus he wasn’t sure what he could afford.
“I started to feel like I was getting
desperate and I was constantly worried
about my future lifestyle. “All I seemed
to be doing was complaining and I felt
miserable about everything,” said Christo.
I was in the grocery store one afternoon
and I bumped into a neighbor who just
so happens to be a mortgage broker. She
noticed that I seemed depressed so I told
her my situation, and she said why don’t
you get a reverse mortgage.
A reverse mortgage works just like a home
equity loan but with one big exception:
A senior does not have to pay back the
loan until he or she moves out of the
home or dies. Another great advantage
is that interest rates are lower for reverse
mortgages compared to traditional loans
and mortgages, and a senior can receive
mortgage payments for the rest of their
life.
Seniors have the option to choose a lump
sum, a line of credit or monthly installments
that will last their entire lifetime.
Before seniors can reap the benefits of
a reverse mortgage, they must be counseled
by HUD and receive a certificate. This
allows seniors to really understand the
process and it’s also a guarantee from
the government.
“Before getting my reverse mortgage, I
didn’t realize how much information there
is to know about this type of loan. Thanks
to the required counseling I grasped a
clear picture of what I was getting into,”
said Christo.
“Since I received my reverse mortgage,
my life has been easier. I’m not stressed
out and I enjoy everyday of my retirement.
Thanks to an investment I made years ago,
its finally paying me off in more ways
that I ever thought possible,” Christo
added.
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