We Are Not All the Same. Stop Comparing Us.

By
Mortgage and Lending with PS Mortgage Lending 305-791-4874 or 888-845-6630 365768

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.

Interested in a reverse mortgage program or want more information? Give PS Financial Services a call at (888) 845-6630 or email us at info@PSReverseMortgage.com. 

Click here for more information about the elimination of the reverse mortgage program as we know it:

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Information and content in this blog is original to Phil Stevenson

Please click the "SUBSCRIBE TO MY BLOG" button on the right, and receive more Traditional and Reverse Mortgage information in Florida and other parts of the US & Puerto Rico.

 

Phil Stevenson

PS Financial Services

Owner and Principal Mortgage Originator

Certified Reverse Mortgage Professional (CRMP)

LO #365768

NMLS #968090

Cell: 888.845.6630

Miami Mortgages & Florida Mortgages

Copyright © 2013 by Phil Stevenson & PS Financial Services, LLC

Comments (87)

Michael Murphy
Bienvenidos Real Estate - Parksville, BC

Reverse mortgage,  mortgage reverse , egagtrom esrever that's what a reverse mortgage is to me...thanks for sharing

Aug 30, 2013 01:44 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Michael, glad I could help.

Aug 30, 2013 01:45 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

The reverse mortgage can be a very good options for seniors that need an income but would like to stay in their home.  I recommend it in those situations.  I always caution them about taking a RM for the cash or just to have extra money.  They may need that equity someday for living expenses.

Aug 30, 2013 02:14 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Gene, they are using their home equity for living expenses. It's often considered an option for seniors who have no other alternative, but it can also be used as a retirement planning tool. A line of credit option allows them to stay at home and save up that money for when they need it, if they need it. It also gives them more control over the funds and how they are used.

Aug 30, 2013 02:26 AM
Travis "the SOLD man" Parker; Broker/Owner
Travis Realty - Enterprise, AL
email: Travis@theSOLDman.me / cell: 334-494-7846

We had someone in your profession come do a class for our Board recently on the NEW Reverse Mortgage. What you talk about is some of what he said.

Aug 30, 2013 02:49 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Travis, it can very well be. Reverse mortgages have improved a lot in the last few years and a lot of the information out there is either skewed or complied from another time when RM weren't as strong an option as they are now. Glad to see the information is getting being  shared.

Aug 30, 2013 02:52 AM
M.C. Dwyer
Melody Russell Team at eXp Realty of California, Inc. - Felton, CA
MC Dwyer-Santa Cruz Mountains Property Specialist

Thanks for the good information Phil!

Aug 30, 2013 04:25 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

M.C., you are most welcome!

Aug 30, 2013 04:28 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

I think this program has changed. Many, many years ago I knew a woman who I thought would benefit from this, so I got a video about it. When her children saw the video they said "Absolutely not." At that time, it appeared that she would, in effect, be selling the house to the bank. 

It wouldn't have made me cross except she was living on barely enough to pay for her prescriptions, and the 4 kids weren't kicking in a dime to help her. 

Aug 30, 2013 04:31 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Marte, sometimes it comes down to helping your kids or taking care of your finances.

I think the video misrepresented the reverse mortgage because you don't sell your home to the bank, you still own your home. In any case, it's sad to see this woman was struggling and not be able to help herself out because of her kids. Hope it all worked out for her!

Aug 30, 2013 04:42 AM
Brian DeYoung
also affiliated with Howard Hanna - Ithaca, NY
The Realtor with personal investment background

glad to have more information about this.

My dad was just asking me about reverse mortgages today. I leatned a few new things from your blog too, like the fact that is is TWELVE months out of the house before you must sell. ( i thought it was 6).

Aug 30, 2013 09:49 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Brian, that's great to hear. I think it's important to continue to inform the public about reverse mortgages so that they are properly educated in order to make an informed decision in the future. Thanks for stopping by!

Aug 30, 2013 12:09 PM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

Phil, thanks for providing that wealth of information.  It's important that people should seek for an expert like you for any advice regarding reverse mortgage and I'm definitely sure you can help.  Great post!

 
Aug 30, 2013 10:21 PM
Larry Lawfer
YourStories Realty Group powered by Castles Unlimited® - Newton, MA
"I listen for a living." It's all about you.

I understand this process better after reading your blog. Thank you for sharing your information

Aug 31, 2013 02:39 AM
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

It is truly amazing how the public will trust something they see on TV vs. an experienced professional like you.  Great post!  Having closed on a reverse mortgage purchase, I can attest to the rigors of the program, per my clients information.  It's an awesome program and is probably under utilized.

Aug 31, 2013 03:00 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Regina, thank you! As professionals in our field consumers could and should come to us with an questions they have. It's imperative they sit down and discuss the in's and out's of the program before they make any decisions. It always works out better.

Larry, that's great to hear! It's my job to keep others informed, glad to see I'm doing my job right.

Jan, excellent news! It's always great to hear success stories regarding the reverse mortgage. Ironically, I did a post on the under-utilization of the reverse mortgages. It really is a shame.

Aug 31, 2013 04:21 AM
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

When I first saw this post , I thought it was about real estate agents--you know how some pp think we are all 'the same' --goof offs who make lots of money without really working.  Then i read through it and learned something about reverse mortgages!

Sep 01, 2013 01:13 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Mary, haha! We are all at the blunt of misconceptions but we have to power through and hope our clients speak for us, not the media. Glad you learned about reverse mortgages!

Sep 01, 2013 04:20 AM
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI

Reverse mortgages are a much improved product. Most fears are based on past reverse mortgages.

Sep 26, 2014 01:35 AM
Phil Stevenson, CRMP
PS Mortgage Lending 305-791-4874 or 888-845-6630 - Miami, FL
"Mortgage Nerd" in Miami, Florida and Texas

Wayne, very true. Half the battle is misconceptions and misinformation before consumers are even willing to consider the reverse mortgage as a safe product for long-term retirement planning.

Sep 29, 2014 03:11 AM