subject: Concerns About Reverse Mortgages Can Be Allayed By Actual Consumers [print this page] While there are some issues that still need to be ironed out concerning the Reverse Mortgage, those problems are mostly in relation to how they are advertised and marketed to seniors rather than how the product itself. But rather than listening to the opposing experts who battle daily on the news shows and in the newspapers about whether or not reverse mortgages are good for seniors, it should be discussed with the actual recipients, the senior citizens who have weighed all of their options decided that the reverse mortgage was the solution they were looking for.
Reverse mortgages may actually make more sense now than ever before, thanks largely to the release of the HECM Saver and the fact that reverse mortgages now carry significantly less closing costs.
Despite these innovations, there are cautions that must be heeded and some of the senior advocacy groups are suggesting that seniors view the reverse mortgage as the solution of last resort. Ted Sarenski, a personal financial specialist, is also the chair of the ElderCare/PrimePlus committee for the American Institute of Certified Public Accountants who agrees that the changes to reverse mortgages and the HECM Saver are beneficial for seniors overall but stresses the importance of exploring all other options before taking on this type of loan. His advice concluded with suggesting that those who have IRA or pension money still coming in should hold off on the reverse mortgage if at all possible.
Other advocacy groups are not quite as negative, but all do agree on one point: There needs to be consistent and thorough education for the senior before anything is decided on. There is a counseling requirement under some guidelines for the reverse mortgage which prevents the senior from signing documents that are not fully understood.
More and more seniors are finding themselves faced with the possibility of losing part or all of their pensions despite the many years they put into funding them. In addition, they are faced with mounting debts and rising cost of living and other expenses that are simply not covered by the amounts in their IRA or pension accounts. The seniors are then faced with severely changing their lifestyle or worse, being forced to sell their home and hope for the best in a downtrodden real estate market. That stress alone can be a problem for the senior as can the thought of having to seriously change their entire lifestyle because they cannot afford to live at their current standards.
Before judging the reverse mortgage on a single news article or the opinion of one expert or another, it is important that each individual gather their own information to make the decisions based on their own situation. What is right for one person may not be the right answer for another. Using the Reverse Mortgage Calculator or requesting a reverse mortgage quote can be beneficial first steps for the senior and everyone who is concerned to take.
