| |
Some Case Histories
-
Anthony M. (age 80) and Marie M. (age 75) are husband and wife and
reside in Arlington. Theyve lived in the same home for 33 years.
Anthony suffers from Parkinsons disease which has impaired his
ability to speak and move about. Marie suffers from Alzheimers
disease and her memory is failing (For this reason, a guardian was
appointed to represent her interest). When Anthony and Marie came to the
H.O.M.E. program, they had exhausted most of their savings and were in
need of assistance to meet monthly expenses. Their major expense was
in-home care costs which ran $3,333 a month. In order to pay for in-home
care, Anthony and Marie obtained a term reverse mortgage. The term
reverse mortgage provided a monthly payment of $3,500 for a period of 3
years and one month. In addition, their full debt of $32,500 was paid
off from proceeds of the loan. At the end of the loan term, Anthony and
Marie will have 40% of their home equity for remainder of life planning.
-
A 70 year old Dorchester resident, Mrs. H. faced imminent foreclosure.
Of Haitian descent, she had difficulty communicating with her mortgage
servicer located in Kentucky. After several failed attempts to clear up
a misunderstanding regarding a variable interest rate increase, Mrs. H.
decided to continue paying at the old monthly rate. Rather than contact
Mrs. H. to straighten out the discrepancy, the servicer chose to
initiate foreclosure proceedings. According to Mrs. H., the servicer
repeatedly ignored her pleas to explain the reason for the rate
increase. After visiting Mrs. H. at her home and getting to know her,
H.O.M.E was able to develop a strategy which effectively prevented the
foreclosure. The H.O.M.E. program referred Mrs. H. to a local lender who
provided her with a 30-year refinancing package that paid off expensive
credit card debt and put her on firm financial footing.
-
The counselor met repeatedly with the client (and her social workers) to
discuss finances, family dynamics, the client's goals, and the need to
start saving up money for upcoming goals. As time went on, it became
clearer to the client herself that she did not want to remain in the
area at all, never mind engage in a protracted struggle to save the
house. The counselor helped identify key steps in planning for the
family's long-term relocation to be near family in Florida and is
working with the servicer for a deed in lieu of foreclosure, including
arranging for a moving stipend to be provided by the lender. The client
has put a deposit down on a house to rent next door to her sister and
niece in Florida. The entire family is relieved and excited about the
changes ahead, and the client has reported that she does not believe any
of this process would have even started yet without H.O.M.E.'s
involvement. H.O.M.E. was able to leverage clients' existing
relationship with Northeast Behavioral Health's In Home Therapy program
to discuss housing and financial obstacles as a group team and then
leave the client and her therapists to discuss the impact on the
children in the household, her health, etc. The therapists were then
able to assist the client with stressful aspects of planning outside the
score of H.O.M.E.'s services. Additionally, H.O.M.E. was able to
arrange Merrimack Valley Legal Services to meet with and provide the
client with relevant information about her rights in bankruptcy as part
of an overall strategy for getting a new start in Florida.
-
The couple, both aged 69, owns a two-family home. The clients and their
grandson, whom they have raised, live on the bottom floor while they
rent out the second floor to tenants. They obtained a HECM reverse
mortgage (with counseling through another agency) in 2006 to pay off
prior debts and did not take a monthly advance. By 2008, they were
starting to fall behind on expenses after having problems with a tenant.
Although the were able to rent the apartment again, they were forced to
charge lower rent, which hurt their budget each month. Unfortunately, as
money became tighter, they fell behind on property insurance and
property taxes. The HECM servicer paid for insurance and taxes,
charging up their loan balance for the amounts outlaid. Now, in 2012,
the clients realize that their equity is gone, that their loan balance
has reached their principal limit, and that they are in default of their
loan. They now realize that they could be foreclosed upon by the HECM
lender if they cannot come up with a plan to repay delinquencies while
also scrounging up additional money each month for the bills they had
not been paying. The counselor is working with the couple on basic
budgeting skills, helping them to understand their finances for the
first time in years, and working with them to ask for help from family
members with aspects of bill paying and banking that are overwhelming
them. They report doing reverse mortgage counseling over the phone and
do not recall receiving any follow up.
-
Client couple in danger of foreclosure requested H.O.M.E. services
because as they were being repeatedly rejected for H.A.M.P. and other
programs for not submitting required documentation, despite their
protestations that they had sent things in multiple times. The wife has
significant long-term health issue, including crippling arthritis in her
hands that sometimes do not allow her to write with a pen. The husband
also suffers from hand issues after an industrial accident crushed his
hands a decade before. With H.O.M.E.'s help, the couple was able to
obtain a 3-month trial modification with the lender, which just ended
resulting in a permanent modification. H.O.M.E. counseling resulted in
the clients getting on senior housing lists for future housing and
identifying health and family goals that will affect their abilities and
willingness to remain as homeowners in the future. Clients report that
despite their best efforts, they “were getting nowhere” with their
discussions with the lender until H.O.M.E. became involved. As the
client couple's income and finances have changed over the months working
with the couple, follow up counseling will focus on how the couple is
doing under their new payment and awareness of other available services
and programs, including through BenefitsCheckUp. Applying to senior
housing is a vital recognition that the secured modification is likely
to work for only a few years and this step, along with long-term
monitoring, should prevent future problems and protect their residual
equity.
-
Largely because of financial problems, Mr. & Mrs. S. seriously
considered selling their home where they had lived for over 40 years.
They had recently taken out an equity loan to pay for some home repairs
and the purchase of a car. They also had $15,000 in credit card debt and
over $2,000 in back utility bills. Despite their financial difficulties,
they very much wanted to remain in their home. After two sessions with a
H.O.M.E. counselor, Mr. & Mrs. S. chose an open-ended reverse
mortgage. The loan paid off their debts, provided them with $400 per
month to enable them to meet their ongoing expenses, and also provided
an initial line of credit for $61,500. They intend to use the line of
credit only for occasional large expenses such as future home repairs.
Elder Homeowner Protection Since 1984
Free and totally
confidential...800-583-5337
| |
|