MORELIA, Mich., December 13, 2020.- The possibility of older adults accessing a reverse mortgage, to supplement their income when they stop working, was raised by Deputy Javier Paredes in a bill to reform and add a Chapter to the Civil Code of the state.
The reverse mortgage is the financial operation specially designed for people over 65 and dependents, with which it is possible to convert the equity value that the property of your home represents into money, without losing ownership.
This legal figure is defined as a mortgage loan or credit of which the homeowner makes provisions, periodically or in the form of a single payment, up to a maximum amount determined by a percentage of the appraised value at the time of incorporation, so that older people have a monthly income to pay or supplement expenses for medical care and food.
Through the reverse mortgage, the pensioner is obliged to pay periodically and for life to the pensioner or his beneficiary who must be his spouse, common-law wife or common-law partner of 65 years of age or over, a predetermined amount of money, which the pensioner will guarantee through the reverse mortgage.
The determination of the reverse mortgage is carried out prior to the appraisal of a duly empowered Institution, which considers the commercial market value of the property, which must be updated every 2 years to be consistent with the capital gain that the asset acquires over time.
In his explanatory statement, he pointed out that older adults, by not working, need the support of the State to enjoy a good quality of life, but in undeveloped nations like ours, such support is precarious, as an example the pension for the Wellbeing of the Elderly, consists of 2,550 pesos every two months, that is, 42 pesos and fifty cents a day.
Older people who face this reality, that they do not like it, that it oppresses them and that it also affects them psychologically due to the health problems they suffer and as a natural consequence their expenses increase, without having the income to solve them, situation that would change with the reverse mortgage, the legislator indicated.
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