Chapter 13, The Miller Story

Mr. and Mrs. Miller (not their real name) had been paying off a Chapter 13 Bankruptcy for several years. They paid $122 per month on their bankruptcy payment plan. They were able to retain their house and had a mortgage payment of $1000 per month. The payments were hard for them as they only had Social Security and a small pension every month. One day, while waiting in line at their M&I Bank branch, Mr. Miller saw a poster advertising Reverse Mortgages. He made an appointment with me to go over that program. I was concerned that we handle their bankruptcy carefully, so with his permission, I spoke to his attorney about our proposed Reverse Mortgage plan. We also spoke to a representative of the court. I sent them some information and the court agreed to let Mr. and Mrs. Miller do this loan. I got that permission in writing and we agreed to fax over their HUD 1 (closing document) as soon as the loan closed. The court gave us 30 days to close the loan…..we did it in 27 days ! Mr. and Mrs. Miller not only got completely out of monthly payment debt with their Reverse Mortgage but also got a little over $3000 at closing. Now they have additional income of $1122 per month (from not having to pay a mortgage payment or a BK payment) and they have a little cushion for emergencies. They are so relieved. They can live in their home for the rest of their lives and never make a payment. They kept the title to their home and any equity left will go to their children.

Brenda Wheeler, M & I Bank Reverse Mortgage Specialist