#41 Using A Reverse Mortgage to Stay Home After a Divorce
KEEPING THE HOUSE POST DIVORCE
In these “worst of times”, your primary goal is to keep life as stable as possible for your grandchildren as you go through a divorce. Not only is it important that you remain close to the customers of your home-based business, it’s crucial that the children not need to change schools In addition to the double upheaval caused first by the death of their parents and now by your “gray divorce”, everything about their schooling has been unstable, seesawing between in-person and virtual sessions. What’s more, under the joint grandparental custody arrangement, the kids will need to get used to one new part-time living arrangement. It would be the height of cruelty, you fear, to force them to adapt to two.
Meanwhile, you’re facing a very tough question “Can I afford this house, considering the mortgage, the real estate taxes, the homeowner’s insurance, and the upkeep?” (Your divorce attorney has argued these very points, but you’re not sure the settlement is going to be sufficient, even with the life insurance proceeds the children inherited.)
Tapping into the equity in your home might provide the answer. Sure, you’ll still need to pay real estate taxes, insurance, and cover all the usual maintenance costs, but there will no longer be a mandatory monthly mortgage payment. Once your life settles into a new routine, you may find you’re able to make mortgage payments after all.
Since, with a reverse mortgage, the title of the property will still be in your name, and, once the grandkids have left the nest, you’ll have the option of selling the home and perhaps downsizing.