A recent op/ed in a major daily is providing the industry with the latest opportunity to address lingering concerns about reverse mortgages – not only from consumers but real estate professionals.
“So if you are thinking of a reverse mortgage, read the fine print,” write real estate brokers Barbara and Clair Ramsey in the
piece for the Alaska Dispatch News.
“Make certain both spouses are on the mortgage to protect the other spouse. Make certain family members living with you know what will happen in the event of a death or default. Finally, check all other options. You know the old saying -- if it sounds to (sic)
good to be true, there is likely something wrong with it.”
Addressing misperceptions such as those is increasingly the focus of reverse mortgage players in the United State but also here in Canada.
“When it comes to finances, we want to educate Canadians on their options, and clear up misconceptions around the reverse mortgage,” says HomEquity
Bank SVP of marketing & sales Yvonne Ziomecki.
Other players in the States are just as quick in pointing to the benefits associated with mortgages allowing homeowners to remain in their homes with the option of deferring repayment until the time of their deaths.
“Homeowners with significant value in their homes have a reverse mortgage option that may afford them more loan proceeds,” says Steve McClellan, president of Urban Financial of America, “and potentially a greater amount of cash up front.”
Real estate brokers and other industry players are increasingly coming onside, although they’re sharing all available options with clients considering a reverse mortgage.
The detractors of reverse mortgages are still out there, with lenders increasingly prepared to counter those arguments with facts about their loans and the growth in borrower interest.