As people grow old and their health can’t support them to perform their daily routine work, they require intensive care that has to be taken either by their children or a caretaker. Generally it’s not possible for their children to take care 24×7 because they have to work to support their living. So, they hire caregivers to take care of their parents because they don’t want to place their parents in a nursing home. But hiring caregivers to take care 24×7 is very costly and most of them can’t afford it. This is a common scenario especially in case of elderly suffering from diseases such as – Alzheimer, acute bone / joint related problems, Schizophrenia, etc. This is where reverse mortgage can help the elderly. They can fund their in-home care expenses using and still own the home.
Here is one such situation that describes the above case.
Katerine Denese (80yrs) is a mother of four children. She is suffering from Paranoid Schizophrenia, parkinson’s disease and requires round the clock care because of Dementia. Her kids didn’t want to place her in nursing home. One of her four children Ms.Hayes acts as power of attorney.
Ms.Hayes has hired caregivers to take of her mother. Their services include cooking, bathing, cleaning and other necessary things required. The caregivers were expensive and she couldn’t afford them for more than an year with the money received from her mother’s pension and social security.
Ms.Hayes sought financial assistance through the federal government, but didn’t succeed in her attempt. Then she thought of mortgaging her home to afford the caregiver, but couldn’t because the interest rates were high. Finally she decided to take reverse mortgage because even after exhausting all the money obtained through reverse mortgage, her mother can still live in her home.
As power of attorney for her mother, Hayes obtained reverse mortgage with a line of credit. With the money obtained, she hired two caregivers. Even paying her mother’s drug bills wasn’t a problem.
Thus reverse mortgage can be used to take care of all sorts of money requirements of elderly.