Klamath Falls Oregon: Reverse Mortgage and foreclosure:
There are three kinds of people when it comes to understanding the truth about Reverse Mortgage:
- Those that know the truth about Reverse Mortgage
- Those that don't know anything about Reverse Mortgage
- And the most dangerous are those that THINK they know about Reverse Mortgage
I will be the first to say that a Reverse Mortgage (or HECM) is not right for everyone you owe it to yourself and your clients if you are a trusted advisor to make sure that you belong to the first group. Starting in 2011 10,000 Baby Boomers are turning 62 everyday, if you are a trusted advisor chances are your client base in the 62+ demographic is rapidly growing. In a survey conducted in 2006 93% of Reverse Mortgage clients are satisfied!
One of the myths that I address regularly is: "If I get a Reverse Mortgage the bank will own my home and I will loose it to foreclosure".
Both are just that: a myth! The client does not give up title to the property the same as with a conventional loan so the "bank" doesn't own it. To address the second half of the question let me ask you one: There is not a montly principle and interest payment so how can the home end up in foreclosure???
It is true that some properties with a Reverse Mortgage end up in foreclosure so let's now learn how they got there. Would you have to pay property tax if you didn't have a loan on your property? Of course you would, so what would happen if you didn't pay your property tax? You would be in tax default and risk loosing your home right? It is the same with a Reverse Mortgage..NO DIFFERENCE! You are also required to keep the home insured and take reasonable care of the property but why wouldn't you want to do that? There are approximately 46,000 (as of July 2011) homeowners NATIONWIDE that are in foreclosure that have a Reverse mortgage.
How many properties are in foreclosure that have a traditional loan?
Their property is not in foreclosure because of the Reverse mortgage, but because the homeowner did not pay their property tax. This same property would likely be in foreclosure with out a Reverse mortgage because we all have to pay our property tax! Take the time to educate yourself for your clients sake about the TRUTH: it would be an injustice if you inadvertantly gave someone who trusts you false information about the program and they were unable to find the relief that they may need in the current economy. So how can you learn? Find someone that has been exclusively in the Reverse Mortgage space for 5 years or more and spend 30-45 minutes with them. Chances are that it will really open your eyes and you will find out why I have stayed in this business for so many years. Unlocking options that can help our Older American's is a mission that pays off in ways that a pay check can not compete with.
If you would like to learn more, please visit my website. I prefer to do business face to face so if you are accross the nation I would be happy to find someone for you that can serve your clients in the same manner.
Tomorrow I will discus the cost of getting a Reverse Mortgage.
I LOVE MY JOB!!
If anyone has a resource to share that has helped an Older American please share it with me!
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