Barbara Quirk is a columnist for the "Capital Times" over in Madison Wisconsin.

Yesterday she wrote about a 90 year old woman in Akron, Ohio who shot herself before she could be removed from her foreclosed home.

The woman was facing a problem all to common to seniors living on a fixed income:  not enough money!

Quirk quotes from a study conducted by the Urban Institute:

 "How much could reverse mortgages contribute to retirement incomes?" The study concludes that retirees who want to stay in their homes can tap into home equity through a reverse annuity mortgage (RAM), which will pay them a tax-free monthly amount. This method can provide a significant boost in retirement income, particularly for low-income homeowners with significant equity. However, recent declines in home prices raise uncertainties about the potential for using a RAM as a retirement income booster.

What should homeowners watch out for when relying on retirement income through RAMs? This study suggests that for many older adults, home equity represents their single largest financial asset. Traditionally, older adults have not tapped into their home equity unless some adverse event, such as the death of a spouse, forces a sale. With the loss of retirement savings, more retirees may be increasingly tempted to turn to their home to help make ends meet.

She concludes by reminding her readers how important it is to get the facts about a reverse mortgage from a legitimate specialist before making any decision.

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For free, no obligation information on West Michigan reverse mortgages, call toll free (in Michigan): 877-308-1489.

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