Common 
Questions
Garden in Wannsee by Max Liebermann, used with permission (110120)

Key Questions

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What are the benefits of the Home Equity Leverage Program over a Reverse Mortgage?

H.E.L.P. can be used for a primary residence, secondary/vacation home, land, mobile home (on owned land) or a rental property ... a Reverse Mortgage is limited to a principle residence.

H.E.L.P. lets you control the donated property for life. Rent it out and keep the income or live in the home for the remainder of your life without paying a mortgage. You have the freedom to choose ...
a Reverse Mortgage applies only to your principle residence so long as you continue to live in the property.

H.E.L.P. accesses the total appraised value of your donated property in generating its benefits ... Federal rules prohibit borrowers from taking out 100% of their home's value in a Reverse Mortgage.

H.E.L.P. will generate a tax deduction based on the appraised value of the donated property.

What are the major advantages of the Home Equity Leverage Program?

H.E.L.P. can relieve the worry and pressures of financial obligations.  H.E.L.P. can provide options that include helping you get more out of retirement. H.E.L.P. also provides the benefit of an immediate tax deduction. (Of course, you should consult your tax professional.) But the advantage that most people enjoy is that of transforming your non-liquid home equity into debt relief and/or guaranteed monthly income for life.


How does the Home Equity Leverage Program guarantee monthly income for life?

The income paid to you is typically generated by an annuity backed by major insurance carriers. H.E.L.P. works with insurers that are highly-rated by leading, independent agencies such as A.M. Best, Moody's, Fitch and Standard & Poor's. US states also have guaranty associations that cover an insurer's annuity obligation to a state-determined coverage level limit. Levels vary, but most states cover at least $250,000 in present value of annuity benefits. Check with the National Organization of Life and Health Insurance Guaranty Association which lists the limit for each state.
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How much income can I expect from H.E.L.P.?

Every situation is unique and dependent on a variety of variables. These include but are not limited to: your age, your marital status, the age of your spouse, the assessed value of your property, and the balance of any mortgages or debts. If you are interested in how much income H.E.L.P. can specifically provide to you, start with a consultation. A detailed NO OBLIGATION proposal will be generated for your specific situation.

Does income from H.E.L.P. continue through the lifetime of my spouse?

Yes. H.E.L.P. provides a “second to die” benefit. You and your spouse will both receive income for the remainder of your lives.

Can my Realtor®, accountant, lawyer, heirs or other advisors help me?

Yes. We encourage that all of your trusted advisors and family participate to the full extent that you desire. Bring anyone to the H.E.L.P. evaluation process that you trust. Your comfort and confidence is of the highest importance.

What kinds of assets qualify for the Home Equity Leverage Program?

Real properties with low or zero debt-to-equity ratios are candidates for H.E.L.P. These real properties include your primary residence, rental properties, vacation homes, raw land and mobile homes.

How is the value of my home determined?

There is an appraisal completed by a Licensed Appraiser ordered by you and a second appraisal ordered by the participating charity. The final value of your home will be the average calculated using figures from the two appraisals.

Do I have any ongoing obligations concerning my property?

Yes, once you are participating in the Home Equity Leverage Program there are three obligations on your part:
1) Pay the property taxes
2) Keep up with normal maintenance and repairs on the property
3) Carry and maintain appropriate property insurance

What happens if I decide to move out of my home during my lifetime?

If you qualify for an annuity income stream, that will continue as agreed. Additionally, should you elect to rent or lease the property, you receive the rental income. In certain instances you can decide to sell your home.  Should that occur, the net proceeds of sale will be invested by the charity and you will receive the lifelong income that is generated.

What is the history of this type of program?

The Home Equity Leverage Program is a form of a retained life estate. This is governed by Internal Revenue Code Section 2036. Our funding partners have been entering into these arrangements with donors for decades.

Key Terms

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Equity

The money value of a property in excess of any debt against it.

Leverage

To use a quality or advantage to obtain a desired effect.

Transform

To change in character or condition.

Illiquid

Not being cash or readily convertible to cash.

Liquidity

Capable of ready conversion to cash.

501(c)(3)

IRS code number for qualified nonprofit organizations like charities.

Annuity

A sum of money payable at regular intervals.

Senior

For the purposes of H.E.L.P. optimum results generally are achieved by one that is age 70 or older, however, anyone may be a candidate
Reinvent your retirement with the benefits of the Home Equity Leverage Program

PLEASE READ CAREFULLY. This is not intended as a solicitation for an investment vehicle or opportunity.  Pacific Sotheby’s International Realty is a real estate broker only, and is intending only to make you aware of opportunities which may include a home sale.  This website is for informational purposes only.  Before engaging in any of the programs or opportunities outlined in this website, you will be asked to consult with your own legal and financial advisors.