credit card debt

Reverse Mortgage Consultation and Meeting Sylvia

In my last post I mentioned that I would start to share some of my clients’ reasons for applying for a Reverse loan and I think I will start out with one of my earliest clients, Sylvia K.

Needless to say, I will not be sharing their actual names due their right to privacy.

Sylvia was in her early 80’s and a widow for a number of years, but did not have enough income from her Social Security to meet her monthly expenses and she had run up large balances on her credit cards to pay them and now found herself without funds to make the payments and still have money for her utilities and food.

I remember meeting her on a very hot summer day in her home and all the windows where covered up in heavy drapes and it was dark inside and she didn’t have any air conditioning and sweat was running down my spine.

Oh yes….it was “hot” in her home.

A trusted friend and neighbor  ( Brenda) was also there, much to my relief because Sylvia was a tough New Yorker and she of course didn’t trust me.

Why should she?   She didn’t know me and I was to be treated with great suspicion.

Anyway, it was hotter then Hell in her living room as she “grilled’ me about Reverse loans and made sure that I knew she was one, smart gal and had been in the clothing industry in New York, a “professional” and couldn’t be taken advantage of.

And she was scared as well.   Here she was, in her 80’s and out of money.  And I really liked her feisty attitude and her three cats, too.

( After she passed away about two years later, I found out about the feral cat colony she was feeding in her back yard).

Brenda asked me questions about the FHA loan, gently encouraged Sylvia to be “nice” to me.   ( And here’s the interesting part.  Sylvia and I became friends and she used to send me cute note cards to my home address, telling me how she was doing and included the names of her three cats in her signature).

And “yes” she did her Reverse mortgage.

She received a Line-of-Credit, paid off the credit cards and had a comfortable amount of money leftover to use whenever she needed it for anything.

She called me one year after she had celebrated her birthday in Hawaii, just to chat with me and tell me all about the two Birthday parties she had, had  and mentioned she wasn’t feeling too well.   I said that she probably had “partied’ too much.

But as it turned out, I was the last person she spoke to as she quietly died later that morning at home in her bed and her neighbor Brenda  ( Who checked up on Sylvia every day) called me and let me know that Sylvia had passed away.

And as I like to say “she lived life on her terms”and I was the last person she spoke to and I like to think that in the “end” she trusted me.


Continue Reading

Using Your Car’s Equity to Pay off Credit Cards

While this doesn’t have anything to do with Reverse loans, I thought  at the time when this was shared with me, that it was a very creative idea to reduce unsecured debt and reduce or eliminate credit card payments each month.

I was at a local community street fair a couple of weeks about and talked with Summer O’Neil who was representing Lockheed Federal Credit Union.  She explained to me how a person can not only get very low interest rates on autos but how they can use any equity they may have in their car to pay off credit cards, which we all know have very high rates.

So could it could be  a nice solution for many people that have too much credit card debt but have equity in their car to leverage and pay off that debt.   Of course, anyone reading this who just happens to be 62 years of age or older may want to use funds from a Reverse mortgage for the same purpose, plus with a Reverse loan, the proceeds would be significantly larger and they would not have a monthly payment.

Here is what Summer explained to me:

“Our auto loan rates for new or used  are as low as 2.99% for 60-66 months .  We can pull cash out from the  equity of the vehicle to payoff other debts such as unsecured credit cards or personal loans with no rate increase. There are some guide lines on the miles on the car and Fico score. 

 The credit score  would have to be 730 or above for up to 90% Loan to value including any current balances owed on the vehicle. The other option we talked about is  share secured loan. This is a type of loan where your savings account here with Lockheed FCU would be the collateral for a loan with an interest rate of 2.25%. There is no income proof/job or credit score/history requirements because your savings is the secured collateral. 

Your savings account will earn 0.25%  so that gives you a net rate of 2.00% paid on this loan. The max term for any dollar amount is 60 months or 5 years.  The benefits are that you can save your money the way you might be doing now as well as pay the lowest loan interest with a fixed payment and rate of 2.00%  As you make payments your secured funds will be available by the amount of each payment minus the interest paid.

We have other options like this that will allow you to have a CD secured loan and make 0 payments for 18 months. Some times Investors like these types of option or people getting lump sums of money in the future.”

If you would like to speak with her for more information, here is Summer’s contact information:


Continue Reading