I've previously commented on reverse mortgages...... in a negative manner. I do so again!
Personally, whenever I see media cracker jacks hyping some product or position, I cannot help but feel that Madison Avenue is in the process of attempting to screw, blue and tattoo the public.
So it is with reverse mortgages. Personally, I have had only one experience with this type of loan, but that one experience, as far as I am concerned, was enough to last a lifetime, and because of it I will probably be Devil's Advocate Number One against reverse mortgages for the rest of my life. In a prior post I pretty well explained what had happened in the case of a reverse mortgage as it related to a client of mine a year ago.
The latest article that I read regarding reverse mortgages included the following comments:
"Vernie Anderson almost fell for the phone pitch. ‘Turn $30,000 into $90,000 with your own Web page,' he was told. A reverse mortgage could get him the cash he needed to start an online business." (wait till you read the paragraph following that one.)
The article continues, later, with: "Lenders from the virtually dead subprime market are migrating to reverse-mortgage loans, using the same hard-sell, high-fees tactics that marked the subprime crisis. Many buyers regret the move a year or two later, according to consumer advocates who are working to undo problem loans."
Best regards....
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