I hear all the time from elder law attorneys and financial planners who don't understand how Reverse Mortgages work, that "the client should just sell the property."
What they fail to comprehend is that over 89% of seniors want to stay in their home (according to AARP) and many have told me that they hope to die in the home that they have lived in for so much of their lives. Telling them to sell their property is not only inconsiderate and won't happen, but in today's environment where much of their value has diminished lately, is probably a bad move for many reasons.
The most absurd part of this strategy is that most of the time it is seen as a lower cost alternative to a Reverse Mortgage. Although Reverse Mortage costs are hig, are they higher than the realtor's commission ona sale? Most of the time they will not.
Comments(10)