June 2009 Newsletter
Table of Contents
- Help Your Older Client Buy a Home and Have No Monthly
Payments
- New Product - Divorce Survival Kit™
- Another Madoff story
- Thought for the Day
1. Help Your Older Client Buy a Home and Have
No Monthly Payments
Scenario #1:
Connie, age 64, was awarded the family home in the divorce. She
loved her home and wanted to stay in it, but the house was large
and needed repairs. She was very concerned about her cash flow and
her ability to make payments on a mortgage. Her mortgage payment
was $2,700 per month. She finally realized she needed to downsize
to a smaller home. After selling the family home, she netted $150,000
in proceeds.
She purchased a townhouse for $245,000 with a $70,000 down payment.
With a mortgage of $175,000, her monthly payments were $1,200 per
month, less than half her previous mortgage payments. She lived
off the remaining $175,000 cash but it was gone in 7 years!
Scenario #2:
Let's take the same facts - Mandy, age 64, was awarded the family
home with the mortgage payment of $2,700 per month. She was also
very concerned about her cash flow and her ability to make payments
on the mortgage. She did an immediate reverse mortgage, was able
to stay in her home, and had no monthly payments after that. So
she saved the $2,700 per month by not having any mortgage payment
at all.
She still owned the house, she never had to make a mortgage payment
as long as she lived in the house, and she could sell it anytime
she wanted.
Scenario #3:
Susan, age 64, was awarded the family home with the mortgage payment
of $2,700 per month. She sold the home (which was paid for) and
netted $360,000. She bought a $245,000 townhouse with an immediate
reverse mortgage. She put down $115,000 to buy the townhouse. She
never had to make monthly payments and she still had the remainder
of her money ($245,000) to invest.
Facts about Reverse Mortgages:
- The owner (and spouse) must be at least 62 years of age.
- It must be their primary residence.
- There are no credit or income requirements to qualify for a
reverse mortgage.
- The buyer still owns the house.
- The house may be sold whenever they wish.
- The interest on the loan is added to the mortgage each month.
- If, when the house is sold, the mortgage is higher than the
value of the house, the owner has no liability to make up the
difference.
2. New Product - Divorce Survival Kit™
My new product is finally ready! To find out more about the Divorce
Survival Kit™, go to www.DivorceSurvivalStore.com.
I personally guarantee that your clients will save thousands of
dollars in your divorce as a result of having the information that
they receive in the Divorce Survival Kit.
I will also be hosting a FREE teleclass for your clients
who are going through divorce. It is called "5 Ways to Survive
Your Divorce Financially." For call-in information, go to www.CarolAnnWilson.com/teleclass
You will find the date and time for the FREE call as well as how
to register for the call.
3. Another Madoff Story
From the May edition of the ABA Journal comes this story:
When a prominent Manhattan attorney, Steven Simkin, divorced his
wife of 30 years, he wanted a clean split. They had a large account
that had been under the management of Bernie Madoff and in 2004
it was worth $5.4 million. So Simkin wrote his ex-wife a check for
one-half, or $2.7 million. So she got the money and his half was
worth nothing.
Thought for the Day
"If we did all the things we are capable of doing, we would
literally astound ourselves"
-Thomas Edison
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