Case #1: Reverse Refinance to help a senior with financial stress
If you learn that a client is suffering through financial difficulties (listen to Bevin Eunice's podcast as an example) your knowledge of a Reverse Mortgage Refinance may be a life changer.
A senior can't take a weekend off or go on vacation to get away from the stress that accompanies financial problems. If daily living expenses can't be comfortably met with fixed income sources, or maybe your senior client's financial situation has worsened due to job loss, illness or death of a spouse or additional money burdens due to family situations, the Reverse Mortgage Refinance enables the senior to put the equity in their house to work for them in the forms of immediate cash, monthly income or a growing line of credit (LOC).
If you solve a problem that is keeping a senior up at night you will have a client for life. You will look and sound completely different from your competition and likely gain access to the senior's sphere of influence as a valuable resource your clients will be anxious to share with others.
Example:
While farming an agent learns that a senior couple who have always been timely on payments and take pride in being financially responsible suddenly experience two bouts of prostate cancer for the husband and the wife has unanticipated surgery for a chronic back problem. Suddenly, despite insurance, the bills for these medical situations start to pile up. They have been paying $1,600 per month on a mortgage with a remaining balance of $320k. They are embarrassed to be in this situation and the worry and stress of meeting each month's financial obligations is having a drain on their relationship. They are even considering bankruptcy.
Solution:
Based on the younger age of the wife (age 75), the couple qualifies to pay off the balance of the loan with a Reverse Mortgage. Their monthly savings of $1,600 equates to $19,200 per year and $288,000 in cash flow savings over the next 15 years of their retirement. They put together a plan to set aside some and deploy the rest of the $1,600 savings each month towards paying off their medical bills over a four year period. Their post closing comment "Now we can enjoy Christmas with our grandchildren" reflects the relief generated by the referring agent knowing that a Reverse Mortgage should be considered when she became aware of the situation. Their kids - who gave their blessing when they discussed the Reverse Mortgage - think highly of the agent establishing them as potential clients for future real estate transactions.
