How Senior Citizen Can Generate Cash from their Home Equity and Life Insurance policy

New York NY, September 2008. Summer is now officially over and a cold winter would pay us a visit soon. Those seniors who can afford it will go and spend the cold season in sunny Florida , hot Nevada and desert Arizona.
Due to recent events in the real estate market,lots of senior home owners look for away to get cash out of their homes and life insurance policies .now we all know that the Federal Government stepped in this weekend to place Fannie Mae and Freddie Mac under federal watch. However, as with any such broad action there will be as many rumors flying as there are facts.
While some of home owners may want to put their financing and real estate activities on hold , it appears that there will be very little immediate impact on the consumer. Rates on traditional fixed agency paper may dip a little, but this action by the Treasury is more about the underlying financial operations of these 2 companies than it is about consumer lending practices. the terms of the government intervention stipulate that Fannie and Freddie have to begin a reduction in the total size of their loan portfolios at the rate of 10% year starting in 2010 until they are about 1/3 of their current size. it means that both companies will need to limit their rate of new business coming in the door as they let loans run-off.
what are the options senior citizen have in order to secure their retirement and get some cash?
reverse mortgage - A reverse mortgage is a special type of home loan that lets a homeowner convert a portion of the equity in his or her home into cash. The equity built up over years of home mortgage payments can be paid to you. But unlike a traditional home equity loan or second mortgage, no repayment is required until the borrower(s) no longer use the home as their principal residence. HUD’s reverse mortgage provides these benefits, and it is federally-insured as well.
Home equity loan - A home equity loan or line of credit allows you to borrow money, using your home’s equity as collateral.
Life Settlement - or also known as senior settlement is the sale of an existing life insurance policy for a lump sum of cash
Equity key - homeowners get up to 15% of their home equity in cash . all they give is 50% of the future appreciation of the house.
From all of the above options I have found the Equity Key option to be the most beneficial to the senior citizen .
Equity Key option offers qualified property owners 65 to 85 a real estate option, which pays cash today in exchange for a share of the future appreciation of residential and commercial property.
The Equity Key real estate option is not a loan. There are no monthly payments or interest charges. the home owner keep their existing equity, and the bank take the risk, believing that the money it paid to the home owner today will be recouped through future long-term growth in property values. By taking this risk Equity Key option allows clients to exchange the possibility of property appreciation in the future for the certainty of cash today.
Equity Key Home provides a sensible alternative to Home Equity loans and reverse mortgages. Instead of lending homeowners money, Equity Key option invests in the future value of their home. Home owner receive a lump-sum payment, based, in part, on how many homeowners are participating, and in exchange, they share any future appreciation with the bank.
If one homeowner participates, Equity Key option typically pays 10% to 15% of the current value of the property today, and evenly divides the future appreciation with the client.
If there are two qualified homeowners, and both choose to participate, they would typically collect 20% to 30% of the property’s current value now, and Equity Key option would receive 100% of any future appreciation.
In both cases, homeowners keep their existing equity. Equity Key’s only interest is the future growth in property value, if any, from the time the option is purchased.