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$250 Stimulus Checks Arriving Soon, May Not Be Enough Bailout for Some Seniors El Dorado Hills, CA — May 8, 2009 –Starting May the American Recovery and Reinvestment Act will provide a one-time payment of $250 to Social Security and Supplemental Security Income, or (SSI) beneficiaries, as well as those who receive Railroad Retirement and Veterans benefits. The payments are part of the $787 billion package of spending and tax cuts enacted in February to help boost the economy. Mary Glenn-Croft, deputy commissioner of the Social Security Administration, told a congressional panel last month that the payments are intended to inject more than $13 billion into the economy while helping beneficiaries of the four programs meet everyday living expenses. Even with the extra stimulus monies, many seniors will find that as prices continue to rise on medical, drug and everyday essentials their social security and pensions can’t keep up with the cost increases. Many seniors need to supplement their retirements through their stock and mutual funds. With a rapid devaluation of these funds, many seniors are spending their golden years having to rethink their retirement. Marion a 80 year old resident of El Dorado Hills says “the $250 is great but it is not going to help those seniors in real need”. Even as the checks begin to arrive, many local seniors will be facing the solemn prospect of bankruptcy or worst, the loss of their homes. According to local bankruptcy attorney, Jon L. Zitomer of the Law Offices of Zitomer & Roberts, P. C. in Cameron Park, "The number of bankruptcy filing and foreclosures has skyrocketed over recent months, largely as a result of the housing crisis and resulting slowdown in the economy." Scott Saitman, Reverse Mortgage Expert and co-host of “The Reverse Mortgage Radio Show”, offers a solution. A reverse mortgage may help those senior homeowners over the age of 62 in financial trouble who wish to continue living in their home. Saitman goes on to state that he has many clients in similar situations. One client he cites is Pat and Frank in Whittier, California. “The situation for these folks is desperate,” Saitman continues. “Without a reverse mortgage they may lose their home of nearly 30 years.” “The turnaround would be significant,” states Saitman. “A reverse mortgage will eliminate their $1200.00 monthly mortgage payment. Pat and Frank will be able to breathe a little easier and enjoy life instead of worrying how they are going to pay for gas, food, and Frank’s medical costs.” With no financial or credit qualifications to meet, no monthly payments, and no restrictions as to how the proceeds can be used, reverse mortgages are becoming a blessing to those seniors in a financial bind. In the case of a possible foreclosure, Saitman states “ a senior can use the reverse mortgage to pay off their existing mortgage, never needing to make another monthly mortgage payment, allowing the senior to stay in their home, giving them piece of mind”. Most senior homeowners think the reverse mortgage is too good to be true. “Not so,” assures Saitman. “The reverse mortgage is backed and insured by the federal government and in the right situation, a prudent means in which the senior homeowner can tap the equity in their home.” Saitman further suggests that if a senior homeowner is seriously considering a reverse mortgage, the senior should consult with family members, trusted financial advisors, or clergy and a reverse mortgage consultant to become educated about the various options available to today’s senior homeowners. An informed consumer can determine if a reverse mortgage is the right course of action. For Information: GetReverseMortgageInfo.com |
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