Legal Question in Credit and Debt Law in Pennsylvania

If you or your wife are over the age of 62, you may qualify for a reverse mortgage. That can be used for anything you want such as basic living expenses, debt consolidation, and/or home improvement. The only requirement of the reverse mortgage is that you pay your own taxes and homeowner�s insurance.

If you are paying anything toward unsecured debt such as credit cards, personal loans, medical bills, you should stop paying that. Failure to pay the real estate taxes can and will likely result in a sale of your home. So, your income should be used in the following priority 1) essentials such as food and clothing 2) utilities that can be shut off if you don't pay 3) real estate taxes and homeowner�s insurance. If there is no money left to pay to unsecured debt, they can call and write you. They may eventually sue you and put a lien on your house but it is extremely unlikely that you will lose your house from unsecured debt.

I trust this answers your question and feel free to contact me about a reverse mortgage or for legal help if you are near or in the Delaware Valley.

I agree with Attorney Nahrgang. This is a duplicate question - my answer would be the same as Attorney Nahrgang's. When money is tight, credit card and other unsecured debt is the first thing to go into default. You focus on daily living expenses and real estate taxes. If you cannot afford the taxes, maybe you need to sell the home and downsize to something more affordable. Or consider a reverse mortgage. I would not use the proceeds to pay off credit cards though. While I do not have all the information to thoroughly evaluate your circumstances, your home is not an ATM machine. If you are getting a reverse mortgage then you want to use those funds to help supplement your living expenses not pay credit card debt.

Reverse mortgages are not for everyone. There are costs to these things. What is your home worth? Typically the lender only gives you about half the value. And the money has to be repaid after the last person to die by your heirs or the home will have to be sold. Do you have any children and would this be an issue for them?

I also would have some options for you depending on what you want to do and the specifics of your circumstances. You can email me at [email protected] if interested.