by Jesus Barrena Reverse mortgage o reverse mortgage It is a mortgage financial operation designed for people of retirement age. The reverse mortgage is an excellent solution to complement your pension by making the property you bought profitable and enjoying that effort.
It consists of converting a part of the value that your home represents into money, without having to sell it, being able to continue enjoying its use and maintaining all the rights of ownership. It is contracted in a solvency financial institution that offers this product, as is the case with the Reverse Mortgage from Catalana Occidente.
Complement your pension with the reverse mortgage, like your pension plan.
At the time of the death of the owner of the home, and beneficiary of the reverse mortgage, there are two possibilities:
1st Possibility of the reverse mortgage.-
That the heirs accept the inheritance with the goods and charges. In this case the house with a mortgage charge, becoming this heir who takes charge of the payment of the same.
Say that normally the value of the home will be greater than the debt with the entity that owns the right of the reverse mortgage. With which you can even sell the house, and with the money you earn, pay off the debt and keep the remainder.
2st Possibility of the reverse mortgage.-
The heirs of the owner of the property can renounce the inheritance, not having to pay the mortgage on the property. In this case, the entity that constituted the reverse mortgage will be the one who retains ownership of it in payment of the debt.
The reverse mortgage is designed for people who, for whatever reason, reach retirement and do not have enough income for their own maintenance and the payment of all their vital expenses. It may be because you have a small state pension and you may not have savings to supplement your pension.
In this case, a solution for a person in these circumstances is to establish the aforementioned reverse mortgage, with which they will obtain a monthly amount of money and even an initial amount to use for their expenses or debts.
When deciding where to take out a reverse mortgage, it is advisable to do so with an entity that offers you confidence. Currently, not only credit institutions offer this financial product as a pension plan, but also insurance companies such as Catalana Occidente Insurance, Santa Lucía, Mapfre, advisers such as Optima Mayores, and others.
The reverse mortgage to complement your pension may be the solution.
