Subscribe to Answers
Jeffrey Cooper I've been quite aware of the use of a reverse mortgage for purchase for some time.
However, I've found that when I bring up the topic of reverse mortgages, there's an instant refusal to even discuss the subject.
When I press for a reason, the only anwer is, "I just don't want to know about them."
In my dealings, it seems that the underlying this relucatance to even discuss reverse mortgages seems to be a gross absence of knowledge about them.
I'll continue to offer a reverse mortgage as a solution. But, I can only lead that horse to the water . . .
Ken Jones, ASA, SCGREA
I am aware of it. But I usually leave "what loan product" up to the Lender.
Tony and Suzanne Marri...
Fred Griffin nailed this one!
I believe it's a good product for some clients. The general public isn't educated and don't know the difference about many loan programs. (some agents don't either) Reverse Mortgage is looked upon as taboo. People think it's a scam, they are not interested. I have attended informational meetings to hear from the lender. I let my lender do the talking.
It's not something a lot of people in my area are interested in doing. We have a lot of cash buyers in my area. They are retired people that tend to be financially stable.
That is a discussion with a client and their lender. It is not my role to promote that, or any other product.
Hmmm.... My job is selling houses and my principal decides what product the most beneficial to use during detailed conversation with a loan broker.
Why do you suggest a Realtor to promote a reverse mortgage product?
It has to be the right client, but I'm also not in the loan business, I'm in the home business.
The vast majority of my clients are not in need of this product or do not have the equity margin to qualify. I do bring it up if the situation warrants it. There have been few people I know who have used it. In their situations, it worked out well.
I don't promote lending products but let my trusted lenders help buyers make the right decisions as far as the best loan for their situation
Because I am in the business of promoting myself, working with people who want to buy and people who want to sell. I really don't care if they use conventional, fha, Texa Veterans Loan, VA, USDA Guaranteed Financing, Cash, Assumption, Seller Financing or Reverse Mortgage Financing. I don't promote any of them.
I am aware of them but to be honest I don't promote lending products, I give recommendations for good loan officers that can go over these options with the clients. -Kasey
I always promote the product. There is not as much equity as before don't forget. Some people lost 30-40K & have still not gotten there yet in my area.
The other snag is that the kids figure they are going to inherit the money but if it was up to me, I'd say that Mom & Dad should live well & hell with the freeloading kids.
I'm well aware of reverse mortgages for purchase and know some people who have done just that. They make a lot of sense for certain situations. When I come across that situation, I do bring it up and sometimes it's well received and sometimes it's not.
We know about it and have used it. It is a very viable option for a certain demographic and can be the difference on whether or not a senior can purchase a home.
I had a reverse mortgage purchase (before the limits changed) and worked like a charm.
I'm aware of it, but I'm not a fan of reverse mortgages and do not advise my clients to look into them.
Most are aware of these products but many agents lack the needed knowledge to know when to suggest a reverse mortgage.
I have not done any transactions using reverse mortgage
that would be up to the home owner
I'm aware of it. Not that certain it's in the best interests of many.
I've been aware of this products for years... a lot of mortgage loan officers seem to be less familiar with it than I am. Like any other product, it makes sense for the right person. I don't "promote" any loan product. That's up to the loan officer to discuss options with my clients.
Jeffrey Cooper - I second what Kenneth J. Jones has shared.
Cost to the owner
If i had a loan officer to work more hand in hand that had teh product i would. I have done a few of them and love the program
Scams and people abused the concept to take advantage of the poor and old.
they feel it's very expensive to close on that mortgage loan....
I look at these a business model designed to prey on the elderly, and I do not participate.
I recommend they discuss that with a the loan officer. I prefer to stick to what I do - help clients sell and buy homes.
For me is has been public resistance.
The are conditioned to the old war stories.
Many want to reserve the right to change their plans and fear reverse mortgage consequences.
Even when I advise, you are buying the house, in the best case, for 60% of value, but there's MORE....
....and you don't have to make any payments!!!
They hear long gone grandpa saying, "If it sounds to good to be true......"
It would be irresponsible for me to push harder since I am not in control of the outcome. What would be helpful is better tools from product providers.
Yes I am aware that if can at times be a stupid idea.
I see that there is an awareness, at least by some AR members.
Just not my market so no I don't need to. Over 50% of my buyers are cash and they like it that way. They don't need to borrow money.