I am still getting dozens of people weekly who tell me that they "don't like" Reverse Mortgages or that they know someone who "got really taken" by a Reverse Mortgage loan officer or they read something or heard something that said that Reverse Mortgages are no good.
I need to be clear here: Reverse Mortgages are not for everyone and are not for every situation. For many people they are exactly what they need and for over four hundred thousand seniors, they have changed their lives for the better.
Here are some obvious scenarios where a Reverse Mortgage is not the right thing:
1) The house is for sale and they hope to sell it soon - The costs of a reverse mortgage only get justified if the borrowers keep the loan for a few years. Taking a Reverse Mortgage for a very short period of time will be very expensive.
2) The homeowners have a lot of money and no impending financial need. - See earlier and the fact that theer is negative ammortization makes taking a Reverse Mortgage when you don't need one, also a very expensive proposition.
Also, it should go without saying, that no Reverse Mortgage should ever be sold with an annnuity or any other financial product. The proceeds are the borrowers' to do with as they choose. At least 90 percent of the negative press surrounding Reverse Mortgages comes from lowlifes that ripped their borrower off to make a commission on another product.
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