We Are Not All the Same. Stop Comparing Us.
It's out there and it's pulling the wool over your eyes and making you think things that aren't true. It's out there and blinding you to the truth. It's out there and it's keeping you from enjoying our retirement fully.
What am I talking about? Misinformation.
Misinformation, the root of all scams, and keeps rearing it's ugly head in my business.
Not only is it hard to combat, but some information are just outright lies, which get recycled over and over, without stopping.
Recently, I found an article from January titled: "The Dangers of A Reverse Mortgage." Naturally, I clicked on it, wanting to see what they had written about and if it was all accurate.
The article begins talking about the various reverse mortgage celebrity endorsements and how they talk about a "tax-free" income and how they don't explain anything upright.
I have to agree. Those commercials, any commercials really, sell a fantasy, not a reality.
Watching a commercial, being enticed to find out more, is fine, but jumping on the bandwagon just because a celebrity told you to? I just don't get it.
Celebrities are paid to tell you things, anything, doesn't mean you have to listen, at any age. Your children don't have to listen either, whether they take care of you or not. The information is out there...seek and you shall find.
In addition, the article talks about the complexity of the program. All contracts are complex, full of legal lingo that the average person doesn't understand. Frankly, I don't see this as a reason to avoid reverse mortgages, or any contract. You'll never do anything! It's an opportunity to educate yourself about the program, what is expected of you, what you expect from it, etc. Open up communication and read everything.
If you apply for a reverse mortgage, you are obligated to do MANDATORY counseling to ensure you understand the in's and out's of the program. The bit that really got me going was the future health section, which falsely claimed that if you were out of your home for three consecutive months, because of health problems or otherwise, you would be evicted and the loan would become due and payable.
I WANT TO STRESS THAT THIS IS NOT TRUE!
The home must stop being your primary residence for 12 consecutive months for the loan to become due. It's true that no one knows the future but what happens if your health is failing, bills are popping up everywhere and you have no way to pay them? Not every medical condition requires you to leave your home but how comfortable you home is during retirement largely depends on you.
The last one was pressure. I don't know about any other reverse mortgage broker, I just know about myself. I don't pressure clients. In fact, my business is built around this philosophy: "we do not pressure those who inquire."
We are all different, we all do things differently, so comparing us. The information is out there, seek it out.
Click here for more information about the elimination of the reverse mortgage program as we know it: