New Uses of Assets: Real Estate

If you need cash and own your own home, there are a batch of alternatives to consider, each of which are discussed in other sections of this article:

• Mortgage refinancing
• Home Equity Loans and Lines Of Credit
• Reverse Mortgages
• Renting your residence
• Selling your home
• Sale-leaseback Arrangements
• Sale of your home subject to a Life Estate

Before using any of the alternatives:

• Consider the risks, tax implications, and effect on your lifestyle.
• Be sure to explore new uses of other assets such as life insurance, credit, retirement planning, and other assets before deciding which alternative is best for you.
• If you have a financial crunch, using your home for cash is just one of the many avenues to consider. See How To Deal With A Financial Crunch for other ideas.
• If you receive cash or decrease your monthly expenses by getting cash from the equity in your home, you could jeopardize your eligibility for public welfare benefits based on your financial need. For example, Medicaid, Supplemental Security Income (SSI), and food stamps. Medicare, Social Security Disability Insurance, retirement benefits, and private insurance benefits will not be affected.

NOTE: If keeping track of maintenance of your home is difficult, consider the following: 

• Write a list of instructions which includes what needs to be done when.
• Use an online calendar such as www.calendar.google.com.  You can set items to recur.
• If you have a smart phone, use an app such as Home Maintenance by Pojo Software. 

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