Carol Ann's Newsletter
September 2015

Table of Contents
  1. Help Your Older Client Buy a Home and Have No Monthly Payments
2. DO's for the Courtroom
3.   From the desk of Carol Ann
4. Humor
5. Thought for the Day

1. Help Your Older Client Buy a Home and Have No Monthly Payments
Scenario #1:
Connie, age 64, was awarded the family home in the divorce.  She loved her home and wanted to stay in it, but the house was large and needed repairs.  She was very concerned about her cash flow and her ability to make payments on a mortgage.  Her mortgage payment was $2,700 per month.  She finally realized she needed to downsize to a smaller home.  After selling the family home, she netted $150,000 in proceeds.
She purchased a townhouse for $245,000 with a $70,000 down payment.   With a mortgage of $175,000, her monthly payments were $1,200 per month, less than half her previous mortgage payments.  She lived off the remaining $175,000 cash but it was gone in 7 years!
Scenario #2:
Let's take the same facts - Mandy, age 64, was awarded the family home with the mortgage payment of $2,700 per month.  She was also very concerned about her cash flow and her ability to make payments on the mortgage.  She did an immediate reverse mortgage, was able to stay in her home, and had no monthly payments after that.  So she saved the $2,700 per month by not having any mortgage payment at all.
She still owned the house, she never had to make a mortgage payment as long as she lived in the house, and she could sell it anytime she wanted. 
Scenario #3:
Susan, age 64, was awarded the family home with the mortgage payment of $2,700 per month.  She sold the home (which was paid for) and netted $360,000.  She bought a $245,000 townhouse with an immediate reverse mortgage.  She put down $115,000 to buy the townhouse.  She never had to make monthly payments and she still had the remainder of her money ($245,000) to invest.
Facts about Reverse Mortgages:
-           The owner (and spouse) must be at least 62 years of age.
-           It must be their primary residence.
-           There are no credit or income requirements to qualify for a reverse mortgage.
-           The buyer still owns the house.
-           The house may be sold whenever they wish.
-           The interest on the loan is added to the mortgage each month.
-           If, when the house is sold, the mortgage is higher than the value of the house, the owner has no liability to make up the difference.

2. DO's for the Courtroom

Last month, I gave you the list of DON'TS for the courtroom.  Now here is the list of DO's.
1.  Be careful about what you wear.  Dress as you would for an important event, and discuss your specific plans with your attorney.
2.  Be on time.
3.  Tell the truth and be straightforward.  If telling the truth means that you will lose, then consider settlement.
4.  Keep your emotions under control, no matter what is said.
5.  Try to act natural.
6.  Listen to the entire question before answering.
7.  Speak up so that you can be heard.
8.  Ask to have a question repeated if you do not understand it.
9.  Answer "yes" if asked if you and your lawyer went over testimony to prepare for the trial.
10.  Write notes to your lawyer if you must communicate with him or her before a recess.
11.  Respond to the judge when he or she asks you any questions.
12.  Be pleasant to opposing counsel, even if you want to attack them.
13.  Come in with a positive attitude.

3.     From the desk of Carol Ann
We are now posting past newsletters on the website.  So, for those of you who missed one, or want to look up something again, here's your chance!  You may especially want to review the 2-part article by Gregg Greenstein, Esq. of Frascona, Joiner, Goodman, and Greenstein, PC about "Divorce and Real Estate."
            Go to: and click on Newsletters.
4.  Humor
Actual call center conversations!
Caller:  I've been calling 700-1000 for two days and can't get through, can you help?
Operator:  Where did you get that number, sir?
Caller:  It's on the door of your business.
Operator:  Sir, those are the hours that we are open.
Caller: (inquiring about legal requirements while traveling in Europe)
If I register my car in France, and then take it to England, do I have to change the steering wheel to the other side of the car?
Caller:  I deleted a file from my PC last week and I just realized that I need it.  So, if I turn my system clock back two weeks, will I get my file back again?

5.  Thought for the Day
You can have just as much success and prosperity as you believe you deserve.
 -Larry Winget


Carol Ann Wilson
Carol Ann Wilson LLC