Tip for a Senior

Robert Bruss gave some very bad advice (“Carry-Back Mortgage Involves Little Risk”) in his June 22 “Real Estate Q&A;” column.

He suggested the elderly writer carry back a mortgage on her home to finance her care in a retirement facility. And he claimed the risk is “minimal,” provided the buyer has good credit.

A job loss, failed business, divorce, death or serious illness can put today’s well-qualified buyer into default. It will take six to 12 months to complete the foreclosure, eviction and resale. During that time, this particular seller will have insufficient income to cover her living expenses.

And how will she finance the repairs that will inevitably be needed on the ill-maintained (and possibly vandalized) foreclosed property to prepare it for resale? And who will take care of all the legal arrangements associated with a foreclosure?

Carrying back a mortgage may be a good idea for sophisticated investors like Bruss or for affluent retirees with enough income from other sources to cover their living expenses. But for people with limited income like the letter writer, a carry-back mortgage is much too risky.

Senior citizens with limited assets should leave mortgage writing to the banks and put their life savings in safe, diversified investments.

ALAN P. DUBIN

Tustin