More Seniors Consider Reverse Mortgages to Finance Retirement

Honestly, I sell Reverse Mortgages and I do it with out guilt. Some of the homes I have been in, the seniors cannot afford food or their prescriptions because they are paying their monthly mortgage and they have equity tied up in their home that only their children will benefit from. The reverse allows the homeowner to live in their home without fear of foreclosure, the ability to purchase needed items and more often than not, make needed repairs on the home. Yes the bank profits from the mortgage, but you can't tell me that starving to death is better. The only ones that should have any concern about it are the heirs to the property, and if the heirs care more about how much money they get than mom/dad or the grandparents living comfortably, then shame on them. Even those that are doing okay financially, we can almost always lower their interest rate, make repairs on their home and give them cash to do what they want with, they can make monthly payments on the note just as a conventional mortgage, the only difference is that if they have a bad month, they don't have to make the payment. Last week I had two seniors who were about to be booted out to the streets because they couldn't make their monthly mortgage payment, they had no where else to go, so the reverse saved their home. Now what would have happened even if they could have made their payment, the bank would have gotten the home and they wouldn't have been able to utilize their equity. Reverses are not a bad deal, but you have to have an honest Loan Officer who will explain the ins and outs.

Edward of OK 5:02PM February 12, 2009