Reverse Mortgage Loan Blog

No Credit Requirements and Non-Recourse Design Mean Reverse Mortgages Remain Available Despite Current Economic Issues and Failures

As many senior citizens find themselves caught in a new “Senior Squeeze” because of pressures in the larger economy, retirement expert Eric Bachman of Golden Gateway Financial says that reverse mortgages are one of the few avenues for generating income for seniors that remain quick, safe and available.

“Senior citizens are finding it increasingly hard to secure lines of credit, sell their homes as part of a downsizing effort, or pinch pennies to make ends meet,” said Bachman. “Even though falling home values have limited some cash payouts, reverse mortgages overall remain one of the lone bright spots for seniors because they remain readily accessible and relatively immune to the credit issues affecting the larger economy and forward mortgages.”

A reverse mortgage allows individuals 62-years or older who own their homes to secure up-front cash, ongoing monthly payouts, or a combination of the two from a lender. No credit evaluation is required for a reverse mortgage; the only stipulations are that the owner remain in the home, pay the property taxes, and properly maintain the property. And because a reverse mortgage is a non-recourse loan, borrowers will never owe more than the current market value of their homes, effectively protecting their heirs from debt.

“Trickle down bail-outs will not reach seniors, who fortunately are capable of acting and protecting themselves through products such as reverse mortgages,” added Bachman.

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