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I still encounter people who have such a bad perception of Reverse Mortgages

By
Mortgage and Lending with First Meridian Mortgage

I still encounter people who have such a bad perception of Reverse Mortgages that they won't consider them, even when they are exactly what they need.

Two examples:

Yesterday I spoke to a gentleman who owned a three hundred thousand dollar co-op free and clear. He asked me about getting aHome Equity Line of Credit because he was having trouble paying his bills. His income was very low and his credit was poor. When I told him that he could only get a Reverse Mortgage line of credit, he would not listen to me at all.

Several months ago, I was speaking to a man whose wife had a debilitating illness. He felt that within a year or two, she would need full-time care costing about $3,000 a month. He was paying about $1,100 a month on his current mortgage and I could get him about $1,600 a month with a tenure payment (for as long as he lived in the home) with a Reverse Mortgage. The $2,700 cash flow increase was exactly what he needed. He decided to consult with his nephew who was vehemently against a Reverse Mortgage and compelled him to take a forward mortgage. Now he is making his monthly payments form the proceeds and will run out of money in a few years. He will almost certainly be forced out o fhis home at that point. A Reverse Mortgage has no payments , would have allowed him to satyin his home forever and never runs out.

Randall Schrader
Competitive Insurance of Dundee - Dundee, FL

Are you explaining this well?  Why would he need to consult a nephew at all?  You just saved his life, financially.  I guess the whole reverse thing makes for confussion so the process needs to be explained perfectly.

Sep 26, 2008 03:29 AM
Chris Brown- Florida Home Loan Specialist | Certified Mortgage Planner
Chris Brown | Certified Mortgage Planners - Orlando, FL
Chris Brown 407.367.2974

'seasoned' cisitzens are somehwat uncomfortable with the 'new', so this is not an easy sell from someone that they have yet come to trust.

 

chris

Sep 26, 2008 03:36 AM
Chuck Christensen
Your Financial Coach - Bellingham, WA

I have found that it is when they talk with their kids that are in line for the inheretance...the kids would rather they not buy the medication they need to stay alive.

Sep 26, 2008 03:37 AM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Michael, I think it might be the press that is fueling the misinformation, I know thats hard to believe...

Sep 26, 2008 03:39 AM
Michael Pinter
First Meridian Mortgage - Brooklyn, NY

Randall,

I think I explianed it well. He just felt that he needed to consult his family who gave him bad advice. unfortunately, this happens a lot. Feel free to subscribe. I post every day.

Michael Pinter

Sep 26, 2008 03:45 AM
Chuck Christensen
Your Financial Coach - Bellingham, WA

Michael, back in the 80s before they were FHA loans, the banks were sending the remainder if what was owed to the beneficiaries...but they can't do that anymore....but the roomer is still around.

Sep 26, 2008 03:47 AM
Michael Pinter
First Meridian Mortgage - Brooklyn, NY

Chris,

You are correct. Thanks for the comment. Feel free to subscribe. I post every day.

Michael Pinter

Sep 26, 2008 03:47 AM
Michael Pinter
First Meridian Mortgage - Brooklyn, NY

Chuck,

You are correct. In this case, the nephew was not his heir and was very wealthy. Feel free to subscribe. I post every day.

Michael Pinter

Sep 26, 2008 03:51 AM
Michael Pinter
First Meridian Mortgage - Brooklyn, NY

Paul,

you are right on teh money. I have posted about the media bias against Reverse Mortgages many times. Thanks for the comment. Feel free to subscribe. I post every day.

Michael Pinter

Sep 26, 2008 03:51 AM
Michael Pinter
First Meridian Mortgage - Brooklyn, NY

Chuck,

The Reverse Mortgahes of the past were a mess.

Sep 26, 2008 03:52 AM
Chuck Christensen
Your Financial Coach - Bellingham, WA

Yes, they were. I wrote a post in 3 parts about reverse mortgages and the last one kind of explains that problem. I had one on a 92 yr old man that couldn't afford to do anything because of the cost of his medication, and someone at WAMU put him into an option ARM last year to lower his payments....he thought the interest rate was too good, but the WAMU rep told him he only had to pay 1.5% interest....He thought that was a fixed rate becasue he told them he wanted a fixed rate, like he told me he wanted a fixed rate on the RM, but they are no longer available anymore.

Sep 26, 2008 06:02 AM
Michael Pinter
First Meridian Mortgage - Brooklyn, NY

Chuck,

I feel your pain. BTW, there are Fixed rate RM's still available.

Michael Pinter

Sep 26, 2008 06:22 AM