Reverse Mortgage News

The majority of the news that you are going to find about reverse home mortgage loans is going to be American news. That's because the United States is the leading place where seniors who own their homes are being offered - and taking advantage of - the reverse home mortgage. However, it's not the only place in the country where the reverse mortgage is an option.

In fact, more and more countries are starting to offer the reverse home mortgage to their elderly home-owning citizens. Australia and India are two countries that really stand out on the international reverse mortgage playing field. And we may be seeing a new face in that reverse mortgage game - Israel.

An article published this week in The Jerusalem Post discusses the possibility of using the reverse mortgage loan to finance life in senior years. The information in this article isn't new to those people who are already familiar with the reverse mortgage. However the fact that it's coming out of Israel gives a new twist to the news.

Question of the Day: Which countries are emerging as leaders in the reverse mortgage industry?

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A new "housing rescue" bill was signed into law by the President last week and everyone is still talking about it. It's considered to be primarily a good thing but many are concerned that it can have negative impacts that we simply can't foresee at this time. In other words, the problems with the mortgage industry are not over yet despite attempts by legislators to improve the situation for Americans.

However, there is one part of the housing bill that doesn't seem to pose too many issues for people - the reverse mortgage aspect of the bill. The bill addressed limitations on reverse mortgage loans and allowed for an increase in the amount that home owners can borrow. The amount open for borrowing is still based on the value of the home and the equity available but the maximum borrowable by law has increased.

It makes sense that the reverse mortgage part of the housing bill would be the least problematic for people. After all, the reverse mortgage industry has managed to stay strong despite all of the problems that the rest of the mortgage industry has faced in recent years.

Question of the Day: How will reverse mortgages benefit the overall impact of the housing rescue bill?

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One of the worst things to happen to the mortgage industry was the subprime mortgage bust. People who thought that they were living the American Dream of home ownership ended up in financial trouble and the entire nation was affected. The worst of the problem seems to be over but the mortgage market is still suffering from its effects. And now some people fear that the bad lenders who were making trouble with subprime mortgages are entering the reverse mortgage market and planning to prey on senior home owners.

Seniors looking for help from reverse mortgages could be easy prey for some very misleading marketing or high-pressure sales tactics from those selling investment and insurance products. The National Reverse Mortgage Lenders Association recently has seen "subprime players coming into our market," warns association President Peter Bell. He also says these speculators are really "fringe players," not legitimate members of the reverse mortgage industry. (source)

This is definitely something that causes concern for the reverse mortgage industry and for people concerned about seniors becoming victims of crime. However it should be noted that the public and the government are both more aware of the risks of bad lending now as a direct result of the problems experienced with the subprime mortgage bust. This means that there is a lot more caution and monitoring in the industry which should limit any damages caused by subprime mortgage lenders trying to enter the reverse mortgage market.

Question of the Day: Are subprime mortgage lenders causing problems in the reverse mortgage market?

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You know those "Dummies" books that give you the basic information that you need to know about a topic? Well there is one that has had to be updated recently because so much has changed from the time that the first edition was released that people reading the book were in need of updated information. The second edition of the Credit Repair Kit for Dummies is out this month to assist people who have had recent troubles with their credit due to changing economic and real estate issues.

There were many new issues addressed in the new edition of the book. One of those is the role that reverse mortgages are playing in dealing with credit repair. Although this isn't a primary topic of the book, it is notable that it discusses the topic at all, revealing the importance of the reverse mortgage in the credit industry today.

The main area of the book in which this topic is discussed is the section that provides advice on getting counseling to assist you in dealing with your credit problems. After all, a Dummies book can only get you so far! You really need financial professional advice to work through some of the questions that will come up. The book provides tips on choosing and using a reverse mortgage counselor.

Question of the Day: How has the reverse mortgage impacted the advice given to consumers about credit repair?

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We kept hearing rumors that there were problems with the lending and real estate economies for a long time. However, it wasn't until about a year ago that it was officially agreed that we were in the midst of a credit crunch. As we approach the one year anniversary of being in a credit crunch, we can see that the reverse mortgage continues to be a solution for people who aren't quite sure how to deal with the financial problems caused by a declining economy.

The reverse mortgage loan is a great loan because it is easy to qualify for. The credit crunch has meant that people are having a harder and harder time qualifying for loans (especially good loans). This is especially true for high-risk borrowers such as fixed-income borrowers. The reverse mortgage provides an alternative income source for those people who can't qualify for other loans during the credit crunch.

The reverse mortgage loan also provides a means of paying off outstanding debt. As the credit crunch has occurred, lenders have taken a closer look at the borrowers that they had already issued loans to. Many borrowers have found that their interest rates have gone up when their accounts were reviewed. The reverse mortgage loan can allow individuals to pay off those newly-high-interest loans.

Question of the Day: Will reverse mortgage borrowing rates continue to climb?

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Many seniors are starting to look at the option of getting a reverse mortgage even before they are of the appropriate age to qualify for a reverse home mortgage loan. (That age is typically 62 although there are some reverse mortgage options out there which are available to slightly younger borrowers.) In many cases, these seniors are part of a couple in which both partners are under the age of 62 but one will be turning that age soon.

One of the things that you can do to get a reverse mortgage in this case is to remove the younger spouse from the deed of the home so that the reverse mortgage loan can be issued only in the name of the older spouse who qualifies to get the loan. This recommendation is often made by aggressive lenders who don't have the borrowers best interests at heart and it is a recommendation that you should be wary of.

There will be some cases in which the best financial move is to get the reverse home mortgage loan at all costs even if it means removing the younger spouse from the deed. However, there are risks involved with doing this so it's something that should be considered carefully. Most couples plan on adding the spouse back on when he or she reaches the age of 62 and can get on the loan. However, a lot can happen between now and then which could jeopardize the younger spouse's ability to remain in the home. Work with a financial advisor to figure out what your options are if only one spouse qualifies to get a reverse home mortgage.

Question of the Day: In what cases should a couple seeking a reverse mortgage loan choose to remove the younger spouse's name from the deed of the house in order to secure the loan?

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There is an article available online today which may be useful to seniors seeking out a good reverse mortgage loan and specifically aiming to avoid those loans that are bad or which have some serious limitations. The article lists thirteen different red flags that you should be aware of when looking at a reverse home mortgage loan. If any of these "red flags" is apparent then you should question the reverse mortgage loan and do some more research before moving forward with signing for the loan.

Some of the things that the aricle suggests that you look out for are complicated contracts that you have trouble understanding, a general lack of willingness from the lender to discuss the specifics of the loan and an apparent lack of alternatives to the reverse mortgage loan that are being discussed. Basically, you want to work with a lender who is going to be up front and honest about the fees involved, the details of loan payback and the pros and cons of getting the loan.

Question of the Day: What are the biggest red flags warning you that you should not get a reverse mortgage loan?

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The reverse mortgage loan is something that should be discussed within families before it is applied for by a senior interested in using this income. There are a few different reasons that seniors should talk about the reverse home mortgage with their adult children. One reason is that the terms of the loan make it such that the adult child may not be able to receive the home in the future as inheritance after the senior passes away. Another reason is because there are predatory lenders out there who take advantage of seniors seeking reverse mortgage loans and this problem may be prevented if adult children are involved in the transaction.

Unfortunately, it appears that most seniors do not feel comfortable talking about finances with their adult children. A new survey shows that fifty percent of seniors have never had an in-depth discussion about their finances with their adult children. Less than thirteen percent of seniors have actually worked with adult children to create a financial plan suitable for the senior as he or she ages. This is a barrier that needs to be crossed if seniors are going to be able to openly discuss the important topic of the reverse home mortgage with their adult children.

Question of the Day: How do seniors approach the task of discussing finances and the reverse home mortgage with their adult children?

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There is a great statement from a recent newspaper article that aptly describes something really important about the reverse home mortgage loan:

"A reverse mortgage should be your last resort, not your first. Should it become your last resort, however, rejoice because it is a remarkable solution in the right situation." (source)

The reverse mortgage loan is not the right choice for everyone. There are definitely some drawbacks to relying on the equity of your home to assist you in funding your life into your later years.

However, there are also some really positive things about the reverse mortgage loan for seniors who do not have other means of obtaining income or paying to remain in their homes as they age. These benefits should not be overlooked even though the reverse mortgage may not be the ideal first choice solution for everyone.

Question of the Day: What things should be considered instead of a reverse mortgage loan before determining that the reverse home mortgage is the right course of action for you to take?

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The majority of reverse home mortgage loans are offered through the federal government but there are some reverse home mortgage loans that are available through private lenders. The largest private lender for reverse home mortgages is a company called OmniHome Financing Inc. This company has recently needed to move to a larger headquarters office because of the fact that demand for reverse mortgages has increased the size of the company's staff.

The reverse mortgage industry has been growing exponentially over the past few years and there seems to be no indication that the growth of the industry is going to slow down anytime soon. This means that other private lenders in the reverse mortgage industry may also be seeing the same kind of success and growth that is represented by the headquarters move of OmniHome Financing. It also means that there are new private reverse mortgage lenders springing up which increases competition in the market and could lead to better reverse mortgage loans for seniors.

Question of the Day: What does the headquarters move of the nation's largest private reverse mortgage lender mean for the industry?

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One of the countries that is regularly publishing news for seniors about the reverse mortgage option is Australia. A new report about the pension and housing situation in the country illuminates why the Australian reverse mortgage issue is such a hot topic.

The report discusses the fact that Australia differs from the rest of the OECD in two important ways. First, Australia has a much lower pension plan for seniors than is found in other countries. And second, Australian seniors may be more likely than other OECD seniors to own their homes outright.

These two facts combine together to make the reverse mortgage something with the potential to really benefit people in Australia. These people don't have enough money to survive into their later years because of the low pension but they do have the asset of a home which they can cash in on using the reverse mortgage to assist them in paying bills in the later stages of life.

Question of the Day: Are reverse mortgages a particularly good idea for people in Australia as compared to people in other OECD countries?

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People who are interested in getting reverse mortgage loans are people who should be talking to others about the reverse home mortgage. First of all, these people should be talking to reverse mortgage professionals but they should also be talking to other people who are just normal people in their lives that may or may not know about the reverse mortgage.

The reason that seniors interested in the reverse mortgage should talk to finance professionals is obvious; they need to get more information about the reverse home mortgage and how it may or may not benefit them. They should get counseling about the reverse home mortgage and they should work to create a budget for using the reverse mortgage loan money responsibly.

But it isn't just professionals that these people should be speaking with. Seniors who are interested in the reverse mortgage should be open about discussing this topic with friends and family. The more people that are talking about this, the more informed everyone is going to be. This helps keep the reverse mortgage industry an open industry that may ultimately be more honest and safe for borrowers as a result of the ongoing discussion about it.

Question of the Day: Who should you talk to about reverse home mortgages?

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It is very important for people who are interested in obtaining reverse home mortgage loans to stay on top of the news that is being written and reported on regularly regarding this topic. There are many different places that you can get reverse mortgage news and you should be trying to look at all of them because of the fact that this news can greatly impact your interest in and use of the reverse mortgage loan.

The general news that you typically read online or in the paper has a finance section that can be useful to people who are seeking out reverse mortgage news. The real estate section may also be useful. General news reports on reverse mortgages tend to be informative to anyone interested in this type of a loan.

However, there are also other important resources for reverse mortgage news. You should read senior news reports and newsletters because they often address the issue of the reverse home mortgage. You should also read alternative news and blogs like this one that are providing updates about reverse mortgage news on a regular basis. By staying on top of this news, you help yourself to be a better borrower.

Question of the Day: What is the best source out there for reverse mortgage news?

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People who are seeking out information about the reverse mortgage loan are typically going to be looking at news reports and blog information online. They are also going to go to finance professionals and senior representatives to discuss the reverse mortgage in person. These are all terrific methods of obtaining reverse mortgage information but you shouldn't discount the importance of also locating books that inform you about the reverse home mortgage.

There are drawbacks to books about the reverse home mortgage in the sense that they don't always have the most up to date information about the laws and regulations regarding the reverse mortgage industry. However, books provide an in-depth look at the reverse mortgage loan that you can't get from other resources. They shouldn't be your only source of information but they should be one source.

Question of the Day: What books are out there about the reverse home mortgage loan?

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After you have done all of your research into the reverse home mortgage loan and worked with a finance advisor to make sure that you are going to be able to budget the money from the loan, you are going to be ready to select the lender that you want to work with to get the reverse home mortgage. You wilol work specifically with a reverse mortgage specialist. Do you care if this person is male or female?

Some people find that there is a gender that they prefer to work with when dealing with finance issues such as getting a reverse mortgage loan. In general, women who work in this field tend to be more sympathetic to the concerns of the borrower and are willing to listen to the stories that they have to tell about why they need the loan. Some people find this comforting.

On the other hand, male reverse mortgage specialists often tend to be more no-nonsense about giving the borrower information about the loan. This can be considered a good thing by people who are seeking to make a serious transaction like the reverse home mortgage. Maybe it's something that you should think about before choosing your reverse mortgage specialist?

Question of the Day: Does gender matter in a reverse mortgage specialist?

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Anyone who has been following this blog for any length of time knows that it is a reverse mortgage news blog that is designed to bring you the latest information out there about the reverse mortgage loan. Additionally this blog sometimes provides basic reverse mortgage loan information, tips and other useful stuff related to the reverse home mortgage.

But that's not all that this blog is about.

Readers are welcome to leave their reverse mortgage stories here in order to generate additional conversation about the reverse home mortgage industry. The more that people share their stories about the reverse mortgage business, the more likely it is that people will have an increased awareness of important information about reverse mortgage loans.

Question of the Day: What's causing you to hesitate about leaving your reverse mortgage stories in the comments below?

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One of the things that has cropped up in respnose to the growing popularity of reverse mortgages is the "reverse mortgage alternative". This refers to something that looks a little bit like a reverse mortgage but is slightly different. The most popular of these has been the REX Reverse Mortgage but there are many other reverse mortgage alternatives emerging (like Equity Key) which are all based on the same ideas.

Essentially, these reverse mortgage alternatives offer you cash now for your home. The catch is that they take a percentage stake of the future sale of the home. With the reverse mortgage, your forfeiting equity. With the reverse mortgage alternative, you are forfeiting a percentage of future home value.

If you are thinking that the latter sounds good then you might find a reverse mortgage alternative to be a better solution than the reverse mortgage for accessing cash immediately based on the value of the home. However, you should be aware that there are pros and cons with reverse mortgage alternatives just like there are with reverse mortgages.

It is important that you think about the process carefully. You should shop around with different reverse mortgage alternative companies since there are now several of them out there. You should read the terms and agreements carefully to make sure that you fully understand what you're giving up in order to get the benefits of the reverse mortgage alternative. And you should consider how this differs from the traditional reverse mortgage before you make a final decision.

Question of the Day: Which is the best reverse mortgage alternative out there?

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Although there are a few lucky people out there who are taking early retirement, most people are actually working longer and later in their older years than they had originally planned. That's not because they love their jobs but because they simply can't afford to quit even if they have reached what is technically supposed to be their retirement age. For people who are getting too old to continue working and who would like to retire but can't afford to do so, the reverse mortgage could be a good option.

The reverse mortgage loan is a great option for people who are seeking to find a way to continue funding their lives after retirement. There are notable drawbacks which we have covered regularly on this blog but for the most part this can be a good way to get money coming in using the equity of your home. For someone who just physically can't work anymore but who feels like there's no financial way to go ahead and retire, the reverse mortgage can be the silver lining on what otherwise appears to be a fairly dark cloud.

Question of the Day: Should people retire based on the idea that they can get their income requirements satisfied from a reverse mortgage loan?

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CNN Money has an article today which comes from Fortune and takes a look at the reverse mortgage loan and how it has been affected by the new housing legislation that was recently passed. This is important (and good to see) because this is a highly-credible and leading money site which means that people will pay attention to it and therefore gain a more solid understanding of the reverse mortgage.

For people who work with the reverse mortgage loan day in and day out, the news in this article isn't particularly informative. It simply takes a look at what the reverse mortgage loan is, how it works, what the benefits and drawbacks are and offers a warning about a few of the major problems with the reverse mortgage loan. But this is great information for someone who doesn't really understand reverse mortgages yet or who doesn't clearly see why the recent housing legislation impacts the reverse mortgage industry.

Check out the article here.

Question of the Day: Why is it a positive thing to see CNN Money looking at reverse mortgage loans?

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A reverse mortgage blog pointed out this week that there is one big area of confusion for many people who are getting reverse home mortgage loans today. That area of confusion is in regards to the fact that the reverse home mortgage loan stipulates that the home must be a primary residence of the borrower. The question is what happens if the homeowner has to go to a hospital or nursing home for an extended period of time.

The reverse mortgage blogs reports that the rule here is that you have one year to deal with this circumstance before the clause in the reverse mortgage loan terms will kick in. Someone who is in the hospital for six months may not technically be using the reverse home mortgage home as a primary residence at that time but as long as the person returns to that residence full-time before that year is up, there shouldn't be any problem.

Those people with reverse mortgages who do find themselves in this position should be aware of that one year clause. If it appears that the individual is going to need to be out of the home for care for longer than one year, it is wise to enlist the help of a finance professional knowledgeable about reverse mortgages to determine what options are available.

Question of the Day: What happens if you have a reverse mortgage loan but have to be out of that home for more than one year?

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The Reverse Review is a publication that is written for people who are working as professionals in the reverse mortgage loan industry. However, it is also a publication that can provide terrific insight about the industry to those people who seek to get a reverse home mortgage loan.

For example, there is an article in the August issue of The Reverse Review which discusses the interesting issue of the reverse home mortgage for the manufactured home owner. Many seniors are living in manufactured homes in retirement parks in their area. Technically, there is no difference between getting a reverse home mortgage loan for a traditional home and getting one for a manufactured home. Technically. But this report indicates that there is a difference in the eyes of the lender.

That's because the manufactured home has typically been looked down upon by the mortgage industry. This shouldn't be the same with the reverse mortgage but it is a stereotype that has prevailed over time among some reverse mortgage professionals. As a result, seniors with a manufactured home may find it more difficult to get a reverse mortgage loan than their peers with traditional homes might. This is something that appears to be changing slowly but surely.

Learn more about it from the article which can be found here.

Question of the Day: What is the difference between a reverse home mortgage for the manufactured home and a reverse mortgage for the traditional home?

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