http://reversemortgageloanblog.com/2008/02/18/congress-looks-into-reverse-mortgages-as-abuses-begin-to-appear/ News and discussion about Reverse Mortgages Sat, 30 Apr 2011 21:05:04 +0000 hourly 1 http://wordpress.org/?v=3.0.5 http://reversemortgageloanblog.com/2008/02/18/congress-looks-into-reverse-mortgages-as-abuses-begin-to-appear/comment-page-1/#comment-1070 victor Mon, 18 Feb 2008 22:21:39 +0000 http://reversemortgageloanblog.com/2008/02/18/congress-looks-into-reverse-mortgages-as-abuses-begin-to-appear/#comment-1070 When reverse mortgage articles appear in broadcast news and print media, the tone is always it costs too much or older people are being duped. The benefits far outweigh the costs. The costs are regulated by the government/hud not by the lenders or originators like it is in the forward mortgae world. You article states that a person would end up paying 30k in fees over the life of the loan. Have you thought about how much the person paid down in fees over the life of the loan plus closing costs? Run an ammortization schedule on that same 300k home and see what the fees are on that. Also, what is the cost to sell the home typically 6 to 7% of the sales price. So, again on that same 300k home the realtor fees would be $18,000 to $21,000. Then add moveing costa of at least 2,000. The emotional cost would be leaving a home in which they are comfortable in and have many fond memories. Authors like you also never point out that credit scores are never an issue nor is the income. A senior can have a 495 score and guess what they can get a loan with a reverse mortgage. Try having the senior buy a home after they sell the house and pay the realtors 6 to 7 % of the sales price. With a credit score like that can you invariably tell me what the result would be. I can, an underwriting DENIAL. Why do many of you want the equity to sit in the seniors homes and not utilize for the better. It is not th ereverse mortgage that is the issue. It is the the insurance/annuity that is being sold to the senior. maybe the insurance industry i sthe one that needs to be reigned in becaus eit is their underwriters that approve that annuities not the Reverse mortgage product. Please start looking at the reverse mortgage as a god send which a client of mine has told me. Many seniors are late on their mortgages so they have the possibility of losing their home that they have sunk tens of thousands of dollars. Your article and many others will scare seniors off. So, would you rather have the big banks take the senior;s home or would paying a little bit higher costs be better for the seniors and have the chance of staying in their homes for as long as they are alive. For the seniors, I think they would rather keep their homes rather than rebuild again after a forclosure. Anytime you or the many writers out there want to write an articcle on reverse mortgage, you guys can ask for my opinion first so that many more benefits will arise. When reverse mortgage articles appear in broadcast news and print media, the tone is always it costs too much or older people are being duped. The benefits far outweigh the costs. The costs are regulated by the government/hud not by the lenders or originators like it is in the forward mortgae world. You article states that a person would end up paying 30k in fees over the life of the loan. Have you thought about how much the person paid down in fees over the life of the loan plus closing costs? Run an ammortization schedule on that same 300k home and see what the fees are on that. Also, what is the cost to sell the home typically 6 to 7% of the sales price. So, again on that same 300k home the realtor fees would be $18,000 to $21,000. Then add moveing costa of at least 2,000. The emotional cost would be leaving a home in which they are comfortable in and have many fond memories. Authors like you also never point out that credit scores are never an issue nor is the income. A senior can have a 495 score and guess what they can get a loan with a reverse mortgage. Try having the senior buy a home after they sell the house and pay the realtors 6 to 7 % of the sales price. With a credit score like that can you invariably tell me what the result would be. I can, an underwriting DENIAL. Why do many of you want the equity to sit in the seniors homes and not utilize for the better. It is not th ereverse mortgage that is the issue. It is the the insurance/annuity that is being sold to the senior. maybe the insurance industry i sthe one that needs to be reigned in becaus eit is their underwriters that approve that annuities not the Reverse mortgage product. Please start looking at the reverse mortgage as a god send which a client of mine has told me. Many seniors are late on their mortgages so they have the possibility of losing their home that they have sunk tens of thousands of dollars. Your article and many others will scare seniors off. So, would you rather have the big banks take the senior;s home or would paying a little bit higher costs be better for the seniors and have the chance of staying in their homes for as long as they are alive. For the seniors, I think they would rather keep their homes rather than rebuild again after a forclosure. Anytime you or the many writers out there want to write an articcle on reverse mortgage, you guys can ask for my opinion first so that many more benefits will arise.

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