Freedom From Loans

Freedom To Eliminate Your Reverse Mortgage 

Pam and Sam are Seniors with a Reverse Mortgage  and are uncomfortable with being in debt .The fact that the property can be sold out from under them ,while they are still alive, is horrific.  Reverse mortgages have provisions, that if, for any reason, they are not living in their house for less than a year, it can be called and lead to a forced sale , which in in turn leads to their heirs being faced with the forced sale.

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As published by the Consumer Financial Protection Bureau, reverse mortgage loans typically must be repaid either when you move out of the home or when you die. However, the loan may need to be paid back sooner if the home is no longer your principal residence, you fail to pay your property taxes or homeowners insurance, or do not keep the home in good repair.

Most reverse mortgage loans are Home Equity Conversion Mortgages (HECMs). A HECM must be paid off when the last surviving borrower or Eligible Non-Borrowing Spouse.

 

• Dies

• Sells their home, or

• No longer lives in the home as their principal residence, including wanting to move closer to family, downsizing, or moving into an assistive living or a nursing facility. 

 

Freedom From Loans has a solution, in which it will form an LLC ,with Pam and Sam for ownership of the house.

Freedom From Loans pays off  the reverse mortgage.

Pam and Sam own a membership share of the LLC.

Their membership share , can be passed directly to their heirs ,without having the liability to payoff any mortgage company. 

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Let's assume the house has a market value of 1 Million dollars that Pam and Sam have an existing reverse mortgage of  500,000 dollars and that they have 500,000 equity in the property, at market value. 

Freedom from loans invests 500,000 dollars, and each of them, would then own a 50% membership share of the newly created LLC.

 

Also, if Pam and Sam need additional cash, Freedom From Loans can provide additional cash in exchange for a proportional adjustment in the membership shares held in the LLC.

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Freedom from Loans gives multiple options to Pam and Sam.

a) They have the option to live in their home as long as they want , by making monthly lease payments to the LLC, or skipping payments through small changes in the membership share percentage held in the LLC.

b) They have the option to move elsewhere and still remain an investor in the LLC

c) They have the option to sell their property in conjunction with Freedom From Loans

d) They have the option to pass on  their membership share to their heirs.

e) The LLC is also designed to cover missed payments, with minor adjustments in the membership ownership percentages , typically less than 0.5 % .

f)  If and when Freedom from Loans becomes a public company in an IPO, Pam and Sam will be granted the option to purchase a number of shares at the IPO price, if they choose to become a part of the company and share in its success.