Real Stories--Learn How Others Have Changed Their Lives

Irene S. and Grace M.

Irene and Grace are now using their reverse mortgage funds to enjoy their senior years--they have money to travel, visit family, and even some left over still growing as equity, which they may choose to leave as inheritance for their families.

Their Story

Our combined income is about $1700 a month from Social Security. After paying homeowners insurance, car insurance, life insurance, Medicare supplements, utilities, gasoline, car maintenance, lake community dues, and normal expenses to survive, like food and clothes, there was never anything left over to play with. We had no savings account for emergencies, no travel money, no luxuries.A couple years ago I was sitting on my back porch, admiring the view of the neighbor's pasture land with gorgeous quarter horses roaming at dusk. The sunset was spectacular. I was absolutely awed. What a lucky person I am. I started to count my blessings: my house and car are paid for, I'm debt free, I have my health, two grown children on the west coast and two beautiful grandchildren, and close friends that are there for me. But I started wondering, “Is this all there is?” Suddenly it hit me while I sat here enjoying the sunset and gloating over my health and good fortune: my retired friends are traveling all over the world, going on cruises, getting manicures, pedicures, going to the big city for concerts, plays, ballgames, buying fancy clothes and jewelry, and eating out in fancy restaurants. And here I sit living their lives vicariously. -Irene

Maybe they handled their money more wisely than I did; maybe they have tremendous pensions; maybe they have annuities, stocks, bonds, you name it. Big Deal! We have none of that. But we do have a house that is paid for! I wasn't born yesterday. Isn't that called equity? And I am sitting on it while others are sitting on deck chairs in the Bahamas! Why not have my cake and eat it too? Just about that time, I read about reverse mortgages in the local paper. I want that, I cried. But how do I get that? Most people, including bankers here, either never heard of them or didn't want to hear about them. For a year I talked to bankers, anyone who would listen to find out about these reverse mortgages. -Grace

Well, it worked! Not without some diligence on all our parts, getting an appraisal, a survey, a termite inspection, a credit report, a title report, and filling out lots of paperwork. Was it worth it? You bet.

Now I know what you are thinking, “What about the grandchildren?” What about their inheritance? First of all, we still have plenty of equity left even after the mortgage. Both my kids are thrilled that at last I have some money to play with, and now I can visit them. I can send them presents and money for special things if they need it. They are completely supportive and always have been. Don't they want me to enjoy the fruits of my labors? Their inheritance is me, now, not after I am gone.

So what was the first thing we did with the money? I bought a computer, started putting collectibles on Ebay and have increased our measly income by about half and have had so much fun doing it. Then we immediately signed up for a Mahjong Cruise on the biggest cruise ship out of Miami, Navigator of the Seas (Royal Caribbean). The ship is 15 stories high, two football fields long, and has an ice rink.

Then we went to California on a whim to attend a birthday party for an 80-year-old. Five days of nothing but fun. As I write this, I am getting ready to go back to California to attend the wedding of my great niece. Another week of fun. I'm thinking of taking my two grandchildren on an Elderhostel vacation on the coast of Oregon next year (2005). I could have attended my high school's 53rd reunion, but opted not to because of the other trips I'm taking this year. In two years, on my 55th reunion, they are planning a cruise. Now, that's more like it! And, oh yes, I've had a few manicures, a pedicure, have tickets to go to my first Cal (UC Berkeley) football game in December since I graduated in 1955! We took some good friends out to dinner at a fancy restaurant this year, and we even treat ourselves to an occasional lunch or Starbucks coffee or a new book. I went to my first book signing and actually bought the book with author's autograph. We still have three CDs that mature in the next few years and a special savings account just for emergencies. We have tickets to community concerts and we are able to make a small contribution to the local art museum each year.

I almost forgot we just bought the lot next to us to protect our peace and tranquility.

None of the above would have been possible without our reverse mortgage. Now our dreams can become a reality. I still sit out back and watch the horses at sunset, listen to the birds and crickets and cicadas, watch the herons as they swoop down on the pond. Is this all there is? Yes, and a whole lot more! -Irene

Herb and Barbara H.

With their reverse mortgage, Herb and Barbara had the funds to make the necessary changes to their house and continue living in a home and area they had grown to love-- they didn't have to sell and start over in a new place.

Their Story:

We've lived in our turn of the century farmhouse for over 25 years. I'm 85, and my wife, Barbara is 72. -Herb

It's such a lovely home and we have about five acres of land. We're located about a quarter mile off the main road, so it's nice and private. I loved our home - selling it was the last thing we wanted to do. -Barbara

I suffer from Parkinson's Disease, which has made it more difficult for me to walk up the stairs to our bedroom on the second floor. -Herb

We decided to get a reverse mortgage so we could modify the first floor to meet Herb's needs. We took an initial draw of $20,000 to fund the home modifications, and the rest we took in monthly payments for life. We added an addition onto the back of the home, then we added a nice sized sun room as well. -Barbara

The renovations made it easier for me to move through the house. And I get along pretty well despite the Parkinson's. -Herb

If we hadn't gotten the reverse mortgage we eventually would have had to sell our home and move into another place.We didn't want to move because after you've lived in a place for as long as we have here, you've arranged things a certain way and you become a part of the surroundings. Getting the reverse mortgage was one of the best things we ever did. -Barbara

(Editor's note: The following borrower profile of Elizabeth Gardner was taken from written testimony she provided before the Senate Subcommittee on Housing and Transportation. The subcommittee held a hearing on Senate Bill 1710, the reverse mortgage to Help America's Seniors Act, on May 19,2006 in Bristol, Pa.)

Elizabeth G.

Elizabeth has peace of mind because she can now pay her bills without worry and cash is available for emergencies or other unexpected expenses. She can also afford a few extras--like new plants for her garden and going out to dinner.

Her Story

My name is Elizabeth...I have lived in New Hope, which is in Bucks County, Pa., for 26 years. Three years ago when I was 76 years old, I began to worry about my ability to continue working full-time. I was barely making ends meet. I was working 40 hours a week at a local art gallery.

At the end of each month, I hoped I had saved enough to pay my bills. I had no extras in my life. Many of us never anticipated the conditions that would result from increased taxes, fuel costs and health care costs. I began to ask myself questions. “What would happen when I could no longer physically continue to work?” “What would happen if the art gallery began to lay off employees?” I did not want to be a burden on my children. And I did not want to worry and be anxious when something went wrong. Routine actions, as minor as having to get my car serviced, would cause me great anxiety.

I would worry and worry and worry about the possible expenses related to keeping my car running until I found out if there was nothing wrong with my car. Or, if there was a problem, how I would be able to pay for the service? I considered moving to Florida or Virginia, to areas that I perceived as being less expensive to live. After doing some homework and investigating areas in Florida and Virginia, I realized that I didn't want to move. I loved New Hope. I wanted to be close to friends. I enjoyed living in my home. As the days and months passed I worried more.

Luckily, one day I was talking to a dear neighbor of mine who suggested that I get a reverse mortgage. I had no idea what a reverse mortgage was nor did I realize how that one simple action would change my life completely. My local bank put me in touch with Mortgage Mobility who patiently and attentively walked me through the steps of a reverse mortgage.

The experience was seamless. I was treated with the utmost respect and actually made wonderful new friends in the process. Like a breath of fresh air I returned to living comfortably, not with material objects but that I no longer lived in a state of panic. When the end of the month comes I no longer need to figure out where the money will come from for my basic survival.

Now I can simply take my car to be serviced without my heart thumping as I wait for the call telling me whether there is something that needs to be fixed. And now I work part-time at the Michner Museum in New Hope, PA. I work as many hours as I want; not because I have to work to survive. I love to garden. I was at the Home Depot the other day. My cart was loaded up with plants. Just behind me there was another lady about my age and in her cart was just one plant. I let her go ahead of me because I had so many. She looked at my cart longingly with a sad expression and said Oh, you have so many plants. I wanted to tell her to go and get a reverse mortgage so that she could also have a full cart!There are so many seniors who should not have to live their lives in the constant state of anxiety that I did. If they only knew about the reverse mortgage. I appreciate the work that the reverse mortgage advocates do. And that AARP, and mortgage companies such as Mortgage Mobility, do. They work diligently to get the word out to our senior community. I am thoroughly enjoying my senior years. I go out to dinner at least once a week. I don't order the most expensive thing, but I am out there leaping and twirling. I hope that more and more seniors take advantage of this program and enjoy their golden years...just like I am!