A widow woman worked her whole life out of the home. Around age 60 she started experiencing heart problems and spent some time in the hospital. It was a pretty scary situation, and she decided maybe she needed to find a way to retire early.
She researched all the information on doing a Reverse
Mortgage on her home, which she had been paying on for many years. Everything
looked like it would work out for her, so she retired and put her plans in
motion.
Something happened that messed everything up. At the time she retired, which was only
recently, she wasn’t supposed to have to worry about paying the Property Taxes
on her home during the Reverse Mortgage process. Then when it was too late to change her mind,
she found out that she was going to have to pay her Property Taxes after all –
over a thousand dollars.
If you have sufficient money, a thousand dollars doesn’t
sound like so much, but if you don’t, it is a lot of money. When you don’t even
have enough funds to save a portion of your tax money monthly, you don’t have
any idea where you are going to get that kind of money to pay the tax bill.
Needless to say, she had to extract money from the small
retirement fund she had earned from her final position. Her other bills got
behind, and she took money from her retirement fund to satisfy her creditors.
It finally got to be too much, and she realized that she needed to go bankrupt
in order to eliminate the creditors, so she could just survive.
She was nervous facing the Bankruptcy Trustee in court,
and she was unable to say that she had used her retirement fund in order to pay
her bills. When asked, she couldn’t even think of the exact details. She didn’t
know what to say in her own defense.
She had used the tax value to report the value of her
home. Apparently, you are allowed $40,000 equity in your home in a Bankruptcy
in order to be able to retain ownership of your home. (Note:
I may not be stating this exactly right, so don’t take this statement as
fact.)
The Bankruptcy Trustee thought that with the improved housing
market, she might be undervaluing her home, so he ordered that an Appraisal be
done. I would guess that she is probably having to pay for the Appraisal
herself, which will cost her at least another hundred and fifty dollars. Also,
she has to wait for them to do the Appraisal.
The Bankruptcy can’t be finalized until this delay has been completed.
In the meantime she has been suffering more health
problems, so at least she has a distraction from having to just sit and worry
whether or not she will lose her home after all the years that she worked to
acquire it.
When we work our entire lives in America, we expect to be
able to retire and not end up homeless.
In our poor economy sadly people are being laid off and ending up
homeless. Our Senior Citizens nowadays don’t seem to be receiving the respect
that they deserve. But if they start ending up homeless also, this country is
really going to be in trouble.
I am certainly hoping that our improved Housing Market is
not now going to hurt Americans rather than help them. Where does it end?
It seems that there are a lot of people in America who
are either rich or well off enough not to have financial concerns. I fear that these Americans do not realize
how bad so many other Americans have it. They do not realize the extent of the
financial problems that many other Americans are facing.
It seems like these unconcerned Americans have no idea
how bad the problem in our country really is now. I know that there are
Americans out there who are eating dog and cat food, because they can’t afford
food. When that man makes that comment on the commercial, “on an every night
Top Ramen diet”, he’s not far from the truth.
Somehow, we need to get some of that money pushed down to
the bottom level of American people. It is not to “share the wealth”, but it
could “share the survival”.
WAKE UP AMERICANS – A LOT OF PEOPLE NEED HELP!