Senior Squeeze Social Security Antiquated Finance – DR. TOM GROOMS (Henley Ph.D.) … Invest in Expertise

Senior Squeeze Social Security Antiquated Finance
Thoughts of author Tom Grooms

It’s been sleeting and snowing outside and you’re either inside warm, cozy and financially comfortable or you can’t figure out what to do in times like the present. If that’s the case then those of you in a bad situation or circumstance will benefit greatly from what I’ve got to say.

The only way you improve your situation is to seek help which isn’t coming or learn what to do and understand how to do it. That’s what we are going to do in this Senior Antiquated Finance piece.

Say you are a senior living on social security income as most of us are. Here is what happens when you apply for a mortgage.

A retired senior on social security who wants to buy another home may need to apply for a mortgage with a bank or mortgage lender. Often times this doesn’t work out the way you would like.

You apply for a mortgage with your bank or mortgage lender and are told your Social Security cannot qualify as income for a mortgage. The bank, mortgage company or loan lender may seem indifferent to your social security compared to other forms of income.

Let’s think about this for a minute how this circumstance came about and why it exists. The reason for these archaic rules is that lenders must follow Fannie Mae, Freddie Mac and government-backed loan guidelines which include specific criteria for retirement income to qualify for any financing program created by Congress.

Now that you know who your enemy is you might ask yourself what is the solution. The solution and fix is to completely abolish and close the doors on all Fannie Mae, Freddie Mac and government-backed loan guidelines for all financing federal programs created by Congress.

Fannie Mae, Freddie Mac and government-backed loan programs have a license with the inherent right to discriminate against mortgage applicants and to suppress and lower the prices of homes in favor of the buyer, thus a transfer of wealth from home-owners. This stands in direct conflict with a free-enterprise marketplace operating in private contracts.

None of these agencies are your friends and Congress hasn’t acted on your best behalf all of these years. This puts these types of generated controlling programs by Congress in the socialist camp.

By closing Fannie Mae, Freddie Mac and government-backed loan programs thus allowing a return to competitive free-markets, the banks and mortgage lenders can become capitalistic once more for the benefit of the American people, especially seniors. The vice of federal conspiracy against the American public-consumer is then dead and buried where they belong, ever non-existing.

The preferred types of income considered for a senior on social security begin with the applicant having employee wages. A person can lose their employment income in an instant by being fired, a layoff or business closing, yet it’s considered falsely more secure.

Next the lenders look to bonuses, overtime and performance commissions. Any of these could be reduced or disappear in a bad economic cycle, period of declining sales, or sudden executive decision.

Then the lenders love rental property income for both the cash flow and equity in the rental. Having your own business, full-time or side business created for its tax advantage is treated as self-employment income. However, if you have a loss one year it will kill your application for approval right then and there even though you have more than adequate income from other sources, primary or incidental. Remember lenders aren’t business people they are paper financiers.

Having investment income and dividends with social security might get you qualified for a mortgage if it’s greater than the amount you need for a mortgage. They will count disability benefits as secure from the military or a corporate defined insurance plan or pension, but not social security income coming from the same source.

Even child support and alimony is considered more secure than social security because you might die stopping the cash flow of social security before the lender is paid-off. After all of these considerations comes social security into play for a mortgage or personal loan.

My thinking is social security is more secure for a mortgage or loan unless the government ceases to exist. And if that’s the case none of all the previous sources of income would probably exist either.

When a senior applies for a mortgage or loan, the lender looks at how long you have been receiving social security, how long it’s expected to last, and how much you are receiving. In most cases even though you have no debt and a little savings in cash, you will need additional forms of income and collateral to supplement your social security income alone to qualify.

A senior will not be approved for a mortgage or a loan that requires more earned income. This means you will work yourself all the way to the grave just to have the privilege of dying in debt.

The odds of a senior getting a mortgage or loan on social security alone is greater than the cow jumping over the moon. In all odds you aren’t going to qualify for the same mortgage, and in all aspects, you won’t qualify for a greater mortgage.

Fear not, it is possible to buy a home on social security without a job as a retiree as long as you meet all the requirements of your lender be it Fannie Mae, Freddie Mac and government-backed loan guidelines and your age isn’t a limitation. It’s called credit worthiness and debt-to-income ratio.

In other words, you don’t have a snow-ball chance in hell because of Congress wanting to control all aspects of people’s lives and their finances. In this case any lender giving you a mortgage or loan may charge a higher, much higher interest rate and additional points at closing.

If it’s not taxes and insurance killing your dream of the final retirement home you want, your government has already done it for you before you even begin, unless you have the cash to buy it outright.

Don’t be a senior in the senior squeeze and let this happen to you. Plan now for the inevitable financial-brick wall depending on banks, mortgage companies and the government for what you really want in life. Remove the financial grip and vice around you by planning and acting on your escape now.

In America we have very few significant problems to face. A great nation never abandons its people for political expediency.

On 14 August 1935, President Franklin D. Roosevelt signed into law the Social Security Act stating that No.5 the annuity payments to the retirees would never be taxed as income. This is another example of why Washington is disrespected in America and all over the world because they don’t keep their word about anything, just do whatever they please regardless past promises and commitments, and vulgarizing American Virtues.

It happens all the time more times than not that people don’t keep their word and do what they promised to do. If you’re not going to do something, then don’t promise it to your spouse, children, friends or country.

What we do face is friction seen with the chaos on the streets while salient fumes are floating in the sky. The only thing left lies with those in positions of power to do the right thing, but they won’t out of self-preservation giving up controls over the American people.

So, keep looking up for hope and keep looking down for free-markets. You never know what might be found in between.

The only thing that will save seniors from rejection of using their social security for a mortgage or loan is to strip away all federal regulations of restraint including closing those institutions, Fannie Mae and Freddie Mac, which carry out archaic laws and regulations. Congress has become the Scrooge trying to control all of America’s finances in lieu of allowing free-markets to regulate the mortgage rates, the mortgage companies and lenders of loans for seniors and all Americans.

No senior deserves the senior squeeze. It is by allowing these types of certain parabolic events to occur which can take on a symbolic importance.

Caveat
This article is based upon extensive reading, research and experience.
The thoughts are the sole opinion of the author and nonadvisory and nonpolitical. The written content is based on experience, opinions, and ideas and research of the author. The author is not engaged in rendering advice. Quotation of passages for purposes of academic research, academic papers, criticism, education, review, and teaching are permitted with proper acknowledgment of the author. All rights reserved.

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