• Question
  • I'm facing a balloon payment of $50.000 in 2018, am om permanent disability and am without the

    Asked by a 62 year old man from Bedford, VA on 5/5/2015

    I'm facing a balloon payment of $50.000 in 2018, am om permanent disability and am without the resources to make that payment. It's equity line of credit. I have no heirs and I wish to find a way to make that payment without bankruptcy and still have supplemental income.

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  • Categories: Paying Off Debt, Retirement Planning

Answers

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  • This is a common problem facing retirees as time goes on. With the low interest rate environment lasting so long, and balloon payments coming due, a challenge will soon be coming up with liquidity to repay the HELOC.

    Hopefully the timing is right in 2018 that you will be turning 62, at that point it may be a very viable solution for you to get in process with a Reverse Mortgage to pay off the HELOC. Once thing to keep in mind that there may be seasoning requirements on your debt, so be sure to discuss with an experienced loan officer so you do not access funds on your HELOC within the minimum seasoning time. For example you may not be allowed to access funds for at least 12 months on your HELOC in order to qualify for a payoff with a Reverse Mortgage.

    Planning ahead is key, you may find your way out of this if the timing is right in 2018.

    In the meantime, if you need additional assistance, or have questions feel free to reach us at 888-411-RETIRE (7384) or email us at service@newretirement.com

  • Login to rate this answer:   Answered on 5/6/2015
**All above answers are provided as general information only. No warranty is made regarding the fitness or accuracy of the information provided in this answer. You should seek advice from a licensed CPA, attorney or CERTIFIED FINANCIAL PLANNER™ as to your unique financial situation.