Living on a Budget, Saving Money/Mom's Future
I just lost my dad and my mom is 84 and in a big house alone. She has only the $150,000 equity in her home that is on a reverse mortgage. Only income is $1300 from SS. She is pretty healthy, but shouldn't drive. Utilities on the house are about $600/month. She doesn't want to live with any of her kids. Does it make sense to move her into an apartment?
I am sorry for your loss and I pray that God comforts you in your time of loss.
Sorry it took me so long to answer I have been out of town. I am not a fan of the reverse mortgage and they can be tricky. I am assuming that 1300 is her total income and that includes the money she gets from the reverse mortgage? If she does move out she will have to pay rent somewhere. Depending on where you live some rent can be very costly and eat up the rest of her monthly money. I would find out what her reasons were for not wanting to live with any of her children. If it is a pride issue or she doesn't want to be a burden to them; ask her would she feel better if they charged her rent. I am sure raising her children was not easy but she didn't consider it a burden let you guys help her. If she has the 150k equity in the home what would happen if she sold the house to the company with the reverse mortgage and got her equity out? Be careful with this because they have a lot of hidden fees/penalties and may not even allow her to sell or it could eat up most of her equity. Just read the fine print and find out what her options are. They may be very costly and not worth it. If she does move out I would look for senior type facilities. Check with SS to see if they have any programs or check with the state she lives in, they may offer some type of assistance if she has any issues with health. I hope this helps some. Let me know if you need me for anything else, just send me an email.Remind her she does not have to make a decision today. She may need some time to heal up after her loss and then she can think better.