When Wells Fargo, the largest reverse mortgage provider, announced the cancellation of their reverse mortgage program many cash-strapped seniors were left scrambling for ways to get money. While many seniors thought reverse mortgages were their only answer, they will be presently surprised to discover they have other, less restrictive options available to them.
According to John Zepeda, Vice President of Rescue Capital, “Many individuals, especially seniors, are unaware that they can sell a portion of their future structured settlement, annuity, life insurance, royalty or pension payments for cash.” Zepeda further stated, “Since our rates are more competitive than credit cards or bank loans we see many people in their 40’s, 50’s and 60’s looking to sell in order to pay for home repairs or eliminate debt.”
Unlike reverse mortgages, when you sell your future payments it is not a loan consequently there is no money that needs to be paid back. With many reverse mortgages an extended, but temporary, nursing home stay can force the sale of the home leaving the senior homeless. Selling your assets for cash has no bearing on homeownership therefore seniors can come and go as they please without the fear of losing their homes.
In addition to the compound interest, reverse mortgage borrowers must pay significant upfront costs including origination fees and closing costs. These costs tend to be greater than the costs associated with the selling of your future payments. In addition, younger individuals may also have the option of selling a portion of their assets for cash. Reverse mortgages are restricted to homeowners 62 years of age or older.
Financial experts are also quick to point out the potential for Medicaid qualification issues with reverse mortgages. Therefore if you are a senior with an illiquid asset and a need for money you owe it to yourself to investigate selling your future payments. With competitive rates and less restrictions, selling your payments may give you the flexibility you need. Since every financial situation is different so it is important to discuss your finances with a trusted advisor such as an eldercare attorney.
To learn more about Rescue Capital and how you can sell your assets for cash, call 866.688.3532.