“Reverse Mortgages Not Good for Everyone”

By
Mortgage and Lending with Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 NMLS # 6869

“Reverse Mortgages Not Good for Everyone”

 

Earlier this week I received a call from a previous client, previous like 20 years ago. Anthony is not 81 years young. He told me that he had been solicited regarding doing a reverse mortgage. He told me that he is always seeing some actor talking about how wonderful doing this mortgage would be and the young man that called told me, that is what I should do.

 

Anthony, let me ask you a couple of questions.

 

 

1.  Do you still have a mortgage balance?

Answer: No

2.  Do receive enough income between social security and pension to handle all obligations?

Answer: Yes, without a problem

3.  Do you need money for any other reason?

Answer: No

 

Anthony said, I’m glad I called you Joe, this wouldn’t be a good idea for me and to think he almost had me convinced.

 Reverse mortgage

A reverse mortgage is not a good idea for everyone, it's aggravating when I hear folks like Anthony being solicited and talked into doing something foolish. I understand about making a living, I don’t begrudge anyone from making a living, but this kind of stuff is a crime. 

image courtesy of stuart miles/freedigitalphotos.net

Posted by

Subscribe to my blog via Email:

 

Enter your email address:

Delivered by FeedBurner

 

Joe Petrowsky, NMLS #6869

Right Trac Financial Group, Inc. NMLS #2709

110 Main St.

Manchester, Ct. 06042

Office: 860 647-7701 x116

Fax: 860 647-8940

Cell: 860 836-9294

Email: joe@righttracfg.com

www.righttracfg.com

www.joepetrowsky.com

Like me on facebookfollow me on twitterConnect with me on linkedin

Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Equal Housing Statement: We are pledged to the letter and spirit of U.S. policy for the achievement of equal housing opportunity throughout the Nation. We encourage and support an affirmative advertising and marketing program in which there are no barriers to obtaining housing becuase of race, color, religion, sex, handicap, familial status, or national origin.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Mortgage / Finance
Location:
Connecticut
Groups:
Connecticut Professionals
Consumer Mortgage Tips
All About Mortgages/Mortgage Networking
Tags:
consultation
mortgage balance
refinance
mortgage options
reverse mortgage

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the envelope to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the balloons to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
223,249
Helen & Larry Prier- Anacortes Properties, LLC- Residential Real Estate
Anacortes Properties,LLC- Residential Real Estate Sales- 360-708-4888 - Anacortes, WA
in Anacortes & nearby communities & Islands

Joe, I am sure there are circumstances when the reverse mortgages help. In this instance you gave him the right advice.

Nov 30, 2013 10:28 AM #16
Rainmaker
301,713
AJ Heidmann
McEnearney Associates, Inc. - Alexandria, VA
YOUR Alexandria & Arlington, VA Real Estate Expert

Joe - A reverse mortgage could be a helpful tool for some, but it appears that Anthony was well outside of the true target market for one.  Fortunately, he was smart enough to contact you to verify if it could help him.

Nov 30, 2013 02:12 PM #17
Rainmaker
82,225
Norma Skeete
Keller Williams Capital Properties - Arlington, VA
REALTOR, GRI, SFR, SRES, Arlington VA Condos for S

Joe - the criminal label is a bit harsh.  There is nothing wrong with a reverse mortgage for the right person.  There are many seniors who are house rich and cash poor.  Consider a situation where there is no family to help otherwise and, therefore, no family to leave the home to either.  All other income sources are depleted and social security and pension (if available) are not enough).  That's when that equity should be tapped.

Remember to get a line of credit or refinance you still have to show evidence of income as you have to pay at least the interest. So the reverse mortgage in this situation is ideal, but you must deal with a reliable person.  There is a counseling session that must be done as well which gives the applicant the opportunity to speak with someone other than the sales person.  Your current income is discussed as well as what you are going to do with the money.

Bottom line, a reverse mortgage can be a life saver for some.  Like everything else though, you have to assess your situation and do your due diligence. 

Nov 30, 2013 04:02 PM #18
Rainmaker
1,067,123
Lisa Von Domek
Lisa Von Domek & Associates LLC, Real Estate Broker/Associate with Real Living Real Estate Group www.LisaVon.com - Dallas, TX
....Experience Isn't Expensive.... It's Priceless!

Hello Joe,

As with everything, one size does not fit all...a reverse mortgage is not right for everyone.  Anthony was smart to contact you to check this program out and get the right answer for his needs.

Nov 30, 2013 04:31 PM #19
Rainmaker
1,373,077
Anita Clark
ColdwellBanker SSK Realtors ~ 478.960.8055 - Warner Robins, GA
Realtor - Homes for Sale in Warner Robins GA

Joe: It is always adviseable for those considering a reverse mortgage to contact a mortgage professional, such as yourself, to see if this is a good option for them.  Great advice to Anthony too!

Nov 30, 2013 04:54 PM #20
Ambassador
843,993
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I've had very little experience with reverse mortgages. My aunt did one, and she's glad she did. You could do a series of posts on them and educate those of us that don't that much about them. Just a thought from me.

Nov 30, 2013 05:21 PM #21
Rainmaker
409,895
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Joe, 

Great post!  It should be a crime to encourage seniors to do this if there is no need.  We had folks we know here lose the house when the wife died as the reverse mortgage was in her name and when she died he had to move out without a dime!  CRIMINAL!

The sad thing is this probably doesn't work out that well for that many folks.

All the best, Michelle

Nov 30, 2013 05:43 PM #22
Rainmaker
1,055,380
Joan Whitebook
BHG The Masiello Group - Nashua, NH
Consumer Focused Real Estate Services

Joe -- It seems like there needs to be a lot more "truth in advertising" regarding the reverse mortgages.  It is not for everyone.

Nov 30, 2013 06:50 PM #23
Ambassador
1,843,092
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages Connecticut - Middletown, CT
Your Connecticut Mortgage Expert

Joe I don't know how these guys are able to look at themselves in the mirror.  Taking advantage of people is not the way I would want to make a living.

Nov 30, 2013 07:20 PM #24
Rainmaker
519,360
Jill Sackler
Charles Rutenberg Realty Inc. "Said and Done!" - Merrick, NY
Long Island's South Shore Real Estate Agent

I agree that reverse mortgages are not for everyone but I look at it more from a real estate agent's perspective - in other words - will your present home fulfill your future needs?

Nov 30, 2013 07:30 PM #25
Rainmaker
973,958
Sharon Alters
Coldwell Banker Vanguard Realty - Fleming Island, FL
Your Fleming Island Relocation Agents.

Joe, a reverse mortgage is only for those who need to pull equity out of their house because they need the income. Clearly these people don't. What a shame they rant into an unethical person and so glad they called you.

Nov 30, 2013 07:43 PM #26
Rainmaker
169,621
Dan Derito
Success! Real Estate - Brockton, MA

I think that the reverse mortgage is a tool that should be used sparingly.  Your old client is fortunate to have a resource like you Joe.

Nov 30, 2013 08:29 PM #27
Ambassador
1,441,712
Jennifer Fivelsdal
JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571 - Rhinebeck, NY
Mid Hudson Valley real estate connection

Joe this certainly would have been the wrong choice for your former client.  The questions you ask should be the one the agent pushing the reverse mortgage should have asked, and come to the same conclusion as you did.  I suppose greed got in the way.

Nov 30, 2013 09:30 PM #28
Rainmaker
1,367,697
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

Hitting what looks like an easy target in marketing to people with what sounds like persuasive talk of riches...grr...makes my blood boil....glad he called you !

Dec 01, 2013 03:45 AM #29
Ambassador
1,280,193
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Specialist

Joe, It is a crime.  Those people who call know that selling a reverse mortgage to someone who does not need it will hurt them and/or their estate.  Why can’t people make an honest living anymore?  Gheez!!!

Reading the comments, yes, it may make sense for some people to get a reverse mortgage. In your example, it makes no sense at all.

 

 

Dec 01, 2013 08:19 AM #30
Ambassador
450,858
Paul McFadden
Environment Control - Kent, WA
Janitorial. Kent, WA.

Joe: Thank you. Honesty in our business and in life is pararmount. Reverse mortgages can solve a porblem but your client didn't have one. Thanks again!

Dec 01, 2013 08:34 AM #31
Rainer
390,169
Bill Reddington
Re/max Southern Realty - Destin, FL
Destin Florida Real Estate

One of my goals is to get rid of my mortgage. Have 3 years to go. Think I am not moving. Will go toes up here.

Dec 01, 2013 10:12 AM #32
Rainmaker
272,279
Eric Boucher
ReadySetLoan Condo Team LLC - South Windsor, CT
The FHA/VA Condo Project Approval Guy

Anthony is very fortunate to have kept your number and called you.  Your clients can always count on you for honest advice.

Dec 02, 2013 03:30 AM #33
Rainmaker
531,462
Ed & Tracy Oliva
West USA Realty - Arizona - Pinetop Lakeside, AZ
Arizona Agents

Good Morning and this is some great advice,  keep up the great work and good luck with your business,  E

Dec 02, 2013 03:57 AM #34
Ambassador
946,159
Bob Crane
Woodland Management Service - Stevens Point, WI
Forestland Experts! 715-204-9663

I cringe at all the adds that I see that are clearly designed to pull money out of our older citizens, thanks for taking the time to help this fellow see the big picture.

Dec 02, 2013 02:03 PM #35
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the eye to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Show All Comments
Rainmaker
915,133

Joe Petrowsky

Your Mortgage Consultant for Life
What mortgage questions can I answer for you
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the world to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Additional Information