I get a lot of comments at this blog and more than 95% of them are either strongly positive or strongly negative about Reverse Mortgages. I get very few people saying to me that they want to learn more about the product, or about the housing market or about the new housing bill. There is so much for all of us to learn. It took me MONTHS to fully understand Reverse Mortgages.
I wish more people had an open mind. It is so hard to change people's existing perceptions.
Michael, what are the pros and cons of a reverse mortgage? Most people just aren't very familiar with reverse mortgages.
Having gone through some reverse mortgage training, it is a very complex product. One of the biggest challenges is completely changing someone's thought process. This product is the complete "reverse" of your typical mortgage. Making it more challenging, the customer must be 62 or older. The older the person, the more set they are in their ways and the less accepting they are to new ideas.
Shirley, Thanks for Asking!
Here is a link to an earlier post of mine that explains the cons:
http://activerain.com/blogsview/558916/Back-to-Reverse-Mortgage
and the pros:
http://activerain.com/blogsview/564154/Back-to-Reverse-Mortgage
Michael - Your conclusion reminded me of an article I read earlier this year. I could not find it, but the context was that it is significantly harder to get someone to believe something once they are predisposed against it. On the other hand, people will willingly accept almost anything as long as it correlates to their views.
Erik,
Thanks for the comment. Unfortunately, there is a tremendous bias against the product in the media that we are trying to overcome.
I do not think the media is bias against the product, I believe they are bias against the industry. A few days ago I saw a story on that is blaming the mortgage industry for an outbreak of West Nile Virus in California. As homes go into foreclosure, no one is taking care of the swimming pools, which are becoming a breeding ground for mosquitoes.
Karl,
I agree completely. We are blamed for a lot of things that are not our fault. Mortgage Bankers and brokers had a very small part of the credit mess.
Michael- I couldn't agree with you more. I have been signing RM's for the past three years and when people hear that I am busy because of RMs they are so negative. Its really hard to have someone see the positive side especially since the reputation this product has gained in the past two decades. Its funny though I see the bias amongst the younger generation compared to the older. On the other hand the one who have benefited from this product couldn't be happier and our living a much more peaceful life.
Therese,
Thanks for the comment. I know of no other product that commands as high an approval rating as Reverse Mortgages. Over 90% satisfaction is unheard of, especially in the financial services field.
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