Having retired in 2004 but still facing significant debt from property taxes and credit cards, David Bradley took more than a passing glance at a pamphlet advertising reverse mortgages.
He immediately was sold.
So Bradley, 65, of Highland Park, decided to take out a reverse mortgage on his home, securing his and his wife's future there.
"I had a lot of debts, and it was sort of a strain trying to handle all the expenses that I had," said Bradley, who closed on his $60,000 reverse mortgage Feb. 8. "I would say it was more or less trying to be in a more comfortable position with my age and circumstances. This would let us be in a more relaxed mode."
Reverse mortgages allow homeowners 62 years old or older to borrow against the equity in their home and receive payment in a lump sum, on a monthly basis or on an occasional basis as a line of credit.
The money does not have to be repaid until the homeowners no longer use the house as their primary residence, sell the house or die.
The Federal Housing Administration reported that the number of reverse mortgages issued jumped by 77 percent last year, from 43,131 in 2005 to 76,351 in 2006.
That trend likely will continue, said Gene Burke, president of All-Pennsylvania Reverse Mortgage in Hampton.
"(Western Pennsylvanians) have the memory from their parents of real estate foreclosures on homes and the specter of furniture being put on the street and being evicted," Burke said. "It's a fear that many older homeowners have.
"You're talking about 70,000 reverse mortgages being done. It's a drop in the bucket when you're talking about eight or nine million (conventional) mortgages being done."
Margaret Benco, 69, has lived in her Ben Avon Heights home for 31 years. She moved there right after getting married. Her husband died in December 2005, and, a year later, she decided to take out a $50,000 reverse mortgage.
"I looked at apartments and things. I have my two cats. Being in my own home, I'm able to keep my pets," Benco said. "I have friends here. It would have been difficult to leave.
"I know my husband would want me to be taken care of."
Benco used a lump sum to pay off credit card debt and now receives monthly payments of $250.
"I was making my bills and all, but I didn't feel secure," she said. "Now I feel secure."
Unlike Benco, Bradley and his wife, Christine, had three adult children to consider when poring over reverse mortgage literature.
After all, the Bradleys are sacrificing part of their children's inheritance. But they think it is worth it because they're able to stay in their home for the foreseeable future.
Lou Lorenz, of West Penn Financial Service Center in the Strip District, said reverse mortgages are especially beneficial to those who plan to stay in their homes long term.
He has helped hundreds of senior citizens through the reverse mortgage process during the past 15 years. The biggest worry his clients have had? "Property tax," he said.
"Our stance is, for some people, it can be the best scenario for them, for their finances," said Ray Landis, AARP associate state director for advocacy in Harrisburg. "It's certainly not the right thing for everyone."
But for those with sentimental connections to their homes, it might be worth looking into, said Barbara Dickman, of Delmont, Westmoreland County, an AARP spokeswoman for the Pittsburgh district.
"People are living longer," Dickman said. "Nobody wants to give up their home. Once they have it paid off, there's an emotional tie there. They don't want to do (leave)."
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