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.
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