This is a story about a Reverse Mortgage in Coral Gables, Miami, Florida…
Many believe that the Reverse Mortgage is for the poor, desperate, or those on the verge of foreclosure. My grandfather feels the same way, but after years of explanation and my Aunt Uncle, and I offering our support my grandparents used the Reverse Mortgage for themselves. Unfortunately, there are a lot of myths and misunderstandings about the program. This blog is not about the program and how it works; rather it’s about different clients of mine who have closed using the program and why they did it.
I March of 2010 a prospective client, whose home is in Coral Gables, contacted me via the internet. He didn’t give me a phone number to call, instead he left his address and fax number. Many people do things like this because they feel they will encounter pushy sales people. So I sent him a fax with my letterhead, and soon after a chain of email communications ensued.
Keep in mind, my clients are 62 years and up, so not all are internet savvy. He is, and I was soon invited into his home. What I encountered was a very intelligent business man who had built a large company that was now working for him. His kids all had money and their own homes, careers, etc, and he was sitting on a $1,000,000 home with no mortgage. So he was looking for a way to access his equity to supplement an already large asset portfolio.
WAIT A MINUTE, PHIL! ARE YOU SAYING THIS GUY HAS BIG BUCKS AND WANTS TO USE A PROGRAM THAT MOST FEEL IS FOR THE DESPERATE?
That is correct!
After several meetings, and the client shopping at the big name lenders, he saw the value in using someone like me. We closed in 17 calendar days (only because we started the process on a Friday and closed on a Monday, otherwise it would have been quicker), and he cashed out over $350,000 to improve his quality of life.
Notice what I just said, IMRPOVED HIS QUALITY OF LIFE! It doesn’t matter if he used the money to buy a yacht or to have an extra $3,000 per month to spend on his lifestyle; it IMPROVED HIS QUALITY OF LIFE.
Isn’t that the same thing the Reverse Mortgage does for people who are desperate and poor? It’s just a different level.