March-April 2021

DESPITE LIVING IN the wealthiest nation on Earth, millions of older Americans live in poverty because their sole source of income is Social Security. They struggle to pay housing and healthcare bills and suffer from inadequate nutrition, lack of access to transportation and diminished savings. Lenora Clark, 91, has lived in Newark, NJ, most of her adult life. She was active in her church, enjoyed gar- dening and fishing and raised three children with her hus- band, General Lee Clark. Lenora worked as a seamstress, while General Lee was a construction worker. Once they started a family, she became a full-time housewife. The Clarks lived a mid- dle-class life. But when General Lee died in 2006, the fam- ily’s income was cut in half, and Lenora struggled. A reverse mortgage dramatically improved her situation. It began in 2017 when Lenora suffered a series of med- ical issues that led to her hospitalization. Her adopted son, Bill Harris, started going through her financial records and noticed some alarming things. Although Lenora rented out two apartments in her home, Bill discovered that the tenants had been taking advantage of her. “One tenant had not paid rent in over a year, while the other person never paid on time. Mom suffered as a result,” says Bill. “She had very little cash assets. I started thinking about a reverse mortgage to help her out. I knew the home was paid for. My father made sure of that before he died.” Bill had heard about reverse mortgages and went onto the internet to learn as much as he could. He contacted Paul Ladell, a loan officer with Reverse Mortgage Funding LLC, who lived nearby. “Paul came to the house and explained reverse mort- gages to me and my mother. He reassured her that she could ask as many questions as she liked,” says Bill. “He discussed the pros and the cons, but the pros seemed to outweigh everything else.” Lenora decided to get the reverse mortgage, and Bill assisted her the entire way, including sitting through the mandatory counseling session. The bulk of the pro- ceeds were used to fix up Lenora’s home and set up a Life Expectancy Set Aside to pay her property taxes and homeowners insurance for the next five years. “The house needed quite a few repairs,” says Bill. “The front porch was unsafe, so the railings and steps were replaced. The apartments that she rented were in shambles when the tenants left, so we repaired them.” Bill says the process of getting the reverse mortgage went smoothly. “It was my first experience helping some- one get a reverse mortgage,” adds Bill, “and despite all of the issues, I thought it was smooth sailing.” Reverse Mortgage Pays for Home Repairs and Property Taxes Family Member Helps Woman, 91, Through the Process By Darryl Hicks Those We Help 32 REVERSE MORTGAGE / MARCH-APR I L 2021