One of the ways to create a steady supply of income in selected situations is to enter into a structured settlement reverse mortgage. This is primarily an option for persons who own property that is paid off. However, if someone owns a home that has accrued a large amount of equity, there are those who will be happy to extend this type of arrangement to the homeowner. But the question remains, is this a good idea and who would benefit from this sort of arrangement?
One sector of the population that could benefit from a reverse mortgage structured settlement would be persons of retirement age that also happen to be property owners. Because this arrangement creates a steady source of income and at the same time allows the homeowners to remain in the home as long as they live, it is a great way to utilize the assets you have built up over a lifetime of working and saving. You get to use the equity in your home to live well, and maybe even take a trip of two that you have always wanted to make. From this perspective, there is a lot of value in the whole process.
Of course, this also means that at the time of death of one or more of the homeowners, the property will then be sold to pay off the reverse mortgage. Unless plans have been made that allow the surviving partner to remain financially solvent, the structured settlement reverse mortgage idea may not be the best. Also, this arrangement may not leave anything behind for loved ones to claim as an inheritance, which may also be a matter of concern.
A structured settlement reverse mortgage has the potential to be a great way for persons to enjoy the fruits of their labors during their later years. Care should be taken with the details of the settlement and how it impacts the overall estate of the persons involved, so that everyone involved is happy with the arrangements.