Reverse Mortgage News

One Borrower's Return From Edge of Foreclosure

May 4 , 2008

By Michael Coit - The Press Democrat

Facing foreclosure on her Sebastopol home and Petaluma rentals, Anna n-ha(cq) Millee used a reverse mortgage to pull cash out of the properties and pay off her lenders.

There also was enough money left to improve the income property. She plans to eventually put tenants back into the units and restore lost income that led to her financial dilemma.

“I was in total panic. Right now, this meets my needs completely,” she said.

Reverse mortgages have gained popularity as retirees find turning equity into cash can meet different goals in their lives.

Paying off home loans, pulling out cash for living and health care expenses, making home repairs top the list. For the 69-year-old n-ha Millee, it’s all of the above.

Her income cut in half, n-ha Millee didn’t qualify for a home equity loan. She didn’t want to sell the property, which has been in her family for more than 70 years.

“That’s why the reverse mortgage was so important for her,” said Jill Gromm, her loan agent. “She’s had two properties in her family for years and years and years. So she’s sentimental and doesn’t want to lose them, but they’re aging.”

Her problems began a year ago when Petaluma officials determined some of the small homes and commercial spaces she owns were uninhabitable. The remaining rental income was not enough to both pay her mortgages and cover living and health care expenses.

“Before this I had enough money to pay all my bills and have a couple of nickels left to rub together,” she said. “Things got real unpleasant.”

By December, she stopped paying the mortgages on both properties. The lenders were set to take them back the end of this month when family friends put n-ha Millee in contact with mortgage brokers. She took out the reverse mortgage at the end of March.

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