Why Reverse Mortgage Delinquencies Are Extensive

Reader Comments
Back to blog

I am 75 and qualified for the reverse mortgage, I spoke to many local brokers and banks but none helped me as much as this website - they pretty much compared all the loans for me and helped me get the interest down (closing costs too) the website is http://www.reversemortgagelendersdirect.com/ their number is 877 700 0534.

Cleveland Johnson of NY 11:46AM July 25, 2012

One reason many folks in reverse mortgages are having problems with insurance is because private home insurance rates have soared to record highs, especially in states like Florida. Regulators are also allowing increased rates and have told me the insurance industry only has to show the need for the rates, and they do not consider the overall impact on economic ability of homeowners to pay. I have had a letter from our Florida Insurance regulator telling me that they do not consider economic impact of rate increases. What a joke. I thought that was one of the main purposes of having regulators. Meanwhile the insurance company in question, State Farm, is making huge profits and has invested in an off-shore insurance company not subject to regulation. This is criminal in my opinion. We paid insurance more than 35 years to State Farm and they should have saved and invested our premiums to pay future claims, instead of asking for higher rates in later years for hurricanes. No. Instead they pay high CEO bonuses and profits to investors, instead of saving and investing properly. Private insurance is a dishonest business.

Joyce Owens of FL 2:14AM June 16, 2012

What do you do if your reverse mortgage is in default because of property taxes and your home has a very serious problem like sinking into the ground on one side and your insurance won't cover it. I am afraid to let my reverse mortgage company know because I don't have any place else to live.

jhailey of MD 3:18PM February 16, 2012

I need to agree with you MTDLV1, it was a wonderful article but if any of you have any doubt on how reverse mortgage works you should ask the experts. What people like me need to do is locate a local mortgage professional to help with the process. Basic and simple information on reverse mortgage is what you are looking for? They helped me a lot and cleared tons of doubts! Check their website! http://www.reversemortgagelendersdirect.com

Mario Vargas of TX 10:55PM December 14, 2011

I disagree in general with your comments Sandy. Most lenders I know do a good job of making sure seniors have a good understanding of the loan and the possible outcomes. As with all businesses, there are those who give the industry a black eye but in general, and due in part to the amount of oversight the industry is subject to, lenders are doing a good job educating their clients.

mtdlv1 of NV 7:03PM December 07, 2011

Catch up! Counseling funds have been re issued and counseling is required for HECM loans.

mtdlv1 of NV 6:57PM December 07, 2011

46,000 reverse mortgages in default for only one reason! I guarantee you there are thousands more we don't know about. Until Senior borrower's khave a toll or method to understand the outcome and consequences for their personal situation, financial circumstances, health and medical needs and create a long term (financial) plan the defaults will continue to rise. Senior's currently have absolutely no idea how a reverse mortgage impacts the remainder of their lives. The only thing most realize is an immediate need or want for case in exchange for a promise to remain in your home for the rest of their life sounds good. We have got to stop selling this product to unsuspecting seniors who have no idea if it is suitable or will irrepairably harm the,. Remember since the lender is guaranteed 100% repayment of the loan through sale of the property and taxpayer subsudies they have no motivation to make sure these loans are appropriate for seniors and frankly it isn't their job (althought they don't tell the seniors this) to determine if it will harm the borrower

Sandy Jolley of CA 6:32PM December 07, 2011