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A Reverse Mortgage Should Be A Last Resort… To What?

March 24, 2014

While the financial planning industry has changed their attitude about considering a reverse mortgage as a last resort, many still think it is… but a last resort to what?

Beth's Reverse Mortgage Blog

A Reverse Mortgage Should Not Be A Last Resort So called senior advocates often state a reverse mortgage should be a last resort.  My question is to what?

A Home Equity Loan?  To qualify for a home equity loan or a traditional loan a lender looks at a borrowers’ credit, income, assets, and ability to make payments.  Most seniors don’t qualify for a home equity loan.

Even if a senior does qualify now, if “life happens” and they have to juggle making a mortgage payment or having funds for other expenses, their stress level increases.  And if they don’t make their mortgage payments they could be facing foreclosure.

I receive calls on a regular basis from seniors who did a home equity loan or traditional loan just a few years ago and now they can’t afford the payments.  When I run the calculations more times than not I find there are not enough proceeds from the reverse mortgage…

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