This fact is alarming to some 11 million seniors who are on a fixed income and have no means of creating additional income to live and pay for their needs. Not to mention any future cost that may come up like medical, home repairs just to name a few. The notice says that under the “Hold Harmless” provision of federal law, basic Part b premiums can not rise higher than any year’s COLA. So a zero COLA means that the basic premium
(Currently $96.40 ma month) is frozen. But this protection does not apply to 11 million beneficiaries who do not have Part B premiums withheld from their checks, or pay a higher Part B premium based on higher income, or newly enrolled in Part B.
With 11 million seniors being affected by this increase in medical cost and not cost of living increase what can they do to help themselves survive. They could see their premiums increase significantly, not to mention 7.5 million low income recipients of social security. Well there is a benefit that is insured by the FED it is for seniors over the age of 62 who are homeowners. The benefit program is called Reverse Mortgages, which allow a senior to tap into the equity in their home for and increase in living and more.
The Reverse Mortgage has been around since the mid 1980’s, but has received bad press in the past, today that has changed dramatically. In the early and late 90’s not too many seniors took advantage of the program, and some of the people who did really did not need it or understand the program entirely. This was a feeding frenzy for the media, and it really took a major hit because of misuse and unethical people who offered the program in conjunction with other programs, such as annuities, insurance and investment programs. The problem; really got out of control so the federal government had to get involve and stop the abuse to seniors.
Today the program has gone through many changes that truly benefit the senior and protect not only their money, but also their estate for being responsible after the senior’s passes or moves.
In the past the media had people believing that the senior would lose their home to the bank. This false statement is nothing more then a rumor. In the Reverse Mortgage the senior does not sign over the title or deed to the home, it is nothing more then a lien on the property just like any other mortgage. Unlike a conventional mortgage; the Reverse Mortgage is a NON-Recourse loan, which means that the lender cannot come after any part of the senior’s estate other then real property. The HOME for payment of the loan.
A senior who owns their home or has a small mortgage can receive the proceeds from a Reverse Mortgage and live in their home for the rest of their lives and never have to make payments, The only thing they have to do is pay the property taxes and the insurance on the home, keep the home in good condition and live in the home as their primary residence that’s it in a nut shell.
The Reverse Mortgage has over the last five years become the largest segment of the mortgage industry and there are so many features for a senior have financial security now and in the future. So don’t wait if you have not looked into the program it truly will change your financial future. There are many options to choose from, the way interest is charged, how money is received and how much money you can receive varies by the program of choice.
