HappySeniorHomeOwners Blog

"A Lousy Deal"???

Today I had to answer a post I read at the following Blog stating that the reverse mortgage is "a lousy deal":
http://retirementplanningnow.net/can-you-qualify-for-a-reverse-mortgage-if-you-file-for-bankruptcy.htm/comment-page-1#comment-27889

With all due respect to vb’s July 17 comment that reverse mortgage are a "lousy deal". May I ask, For Whom?

I am a Senior, I have a Reverse Mortgage on my home, I have originated reverse mortgages for the past 5 years, I have saved several Seniors from loosing their homes in foreclosure, I have seen many seniors improve their quality of living by eliminating monthly payments, I have seen many parents help their children financially, etc...

Now I am seeing that due to the loss of value of homes, MOST Seniors NEEDING a Reverse mortgage don’t have enough equity so that the Reverse Mortgage can pay off their present mortgage. Many will loose their homes. The Only "lousy deal" is that they can’t do it,

So, I fail to see, from a Senior’s viewpoint how it could be deemed "a lousy deal".
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However, if your only concern in inheriting, without ANY concern for your parents happiness or well being, then for those heirs, it might be considered "a "lousy deal".

One alternative is for them to pay your parents a monthly income to help them out. Ah, but "whoa there", say many, "I cant afford that" or they just do it for 3 months and stop because they have their own problems or the spouses balk.
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I can state from my own and my clients experience that a Reverse Mortgage can be a blessing for a Senior that needs it.

Non-Seniors have to understand one thing: the reverse mortgage WAS designed to help Seniors, only Seniors. And, that it does, TODAY.

Since the funds come as advance on the equity and the borrower is not making any payments, the equity could be reduced.  You (or your family) can pay the interest, mortgage insurance premium and fees every month and the debt wiould NOT increase. It is your choice.

So you have to ask yourself the questions: (Or family members can ask themselves)
Do I need the funds now?
Can I continue living with my present income until I die?
Will I become an economic burden to my family?
Could my family helpme if I need it?
If I sell my home, will I have to pay a real estate comission?
If I sell my home where am I going to live?

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