Why Reverse Mortgage Age needs to be changed to 65

  When you are in the throws of being a leading edge baby boomer yourself, you are more apt to accept the reality of this huge bubble snaking through society. There were no crystal balls in our yuppie years to even remotely think we would have a mortgage at 60+. A simple 20 year mortgage of the 60’s became outdated when 25 and 30 year mortgage rates came onto the scene to compensate for larger mortgages for larger and more costly homes in the 70’s, 80’s and 90’s. Encouraged tapping into the equity, consolidating of credit card and higher interest rate loans and then refinancing, modifications and reverse mortgages. What’s next? TV is not shy about attracting your attention to this mystery Reverse Mortgage homeowner consideration. All they want you to do is call for all the free information you could ever possibly want on the topic. Once they have your information I’m guessing you will have to go through a lot of hoops and loops to get off their automated phone and internet email and snail follow-up marketing program. They are doing this when other pioneer banks that jumped into this market from the beginning are now opting out. Why? It’s the way our generation has been evolving into debt handlers. It is a process of evolution that financial institutions could never predict because it’s a too common sense scenario that they closed their eyes to but opened up their dollars to. History has shown that mighty nations have a two hundred year lifespan for example, give or take. A calamity of collapse because of greed mostly. Greed and Dollars are like oil and water. They play with the chemical compositions to make them mix but they won’t stay together. “They,” being the world’s financial lenders, business borrowers and financial resellers to the consumer crock pots that brew up their material possessions via the mystified loan ingredients. If it is bad to do Reverse Mortgages with one spouse taken off the deed even with their consent. WHY ALLOW IT. Now more than ever in anyone’s recorded lifetimes, lenders have force-fed loans to the populace with every conceivable marketing plan to the point that a weakness in the global economy began causing cracks in the infrastructure with no man made materials to shore up the inevitable. The cracks widened, the marketing of dollars became more creative and reverse mortgages happens to be one, selected for the largest bubble of consumers which is the baby boomers. 62 years old and own a home? Let’s talk. Let’s see if you qualify for not making another mortgage payment. Many have and are and that is being creative and for many a huge blessing at this time in their lives. Then why are the pioneers banks pulling out of this market while others are going full speed ahead? Very respected reporting agencies have noted that today’s consumers are no longer of the mindset to be paying off their mortgages as a high priority. Instead they find that lenders need to be addressing the market to compensate for the nature of attitudes toward debt. One reporting agency geared their research to the American market, however global lenders know that this is a monkey see, monkey do world and the attitudes spread like a virus. Consumer debt payment behavior has changed and mortgage lending needs to be more creative in dealing with this pattern change. Surprisingly, the reports indicate that the falling home prices, the lost jobs, the recessionary reactions on a large scale has shown consumers turning attention to keeping current on their credit cards and car payments as a means to maintain their current liquidity. You need a credit card to fuel the tank and a car to get to your work destinations is about the bottom line but what about the roof over the heads? Foreclosures have their own reports and how consumers are dealing with losing their homes. Reverse mortgages have failed in ways unexpected as well. You still have to maintain your property, insurance payments and other contractual obligations for maintaining a reverse mortgage. Some feel 62 and older should be raised to 65 and older, making this three year more mature decision based on statistics showing the more positive side to this lending module. More banks would see the positive turn around on defaulted reverse mortgages proponents of raising the age to 65 . They would then join the competition and make the Reverse Mortgage Industry a larger player in saving homes and consumers financial futures as they are in their tainted but still glimmering golden years. The attractive reverse mortgage payments that are being made to the borrowers each month should be used toward maintaining the obligations of keeping their reverse mortgage solvent and then what is left over be put toward ‘quality of living expenses.’ Thomas A. Mastromatto SeniorFinancialStrategies@gmail.com http://www.CaliforniaReverseMortgageEducation.com/