A.D. Cantelmo Property Management
Our Business is Property Management in Orange County California
Reverse Mortgage, Should you or shouldn’t you?
You see on TV Hollywood actors advertising a Reverse
Mortgage and they seem so trustworthy and want the best for you in your
retirement years, but should you listen to “FONZI” or not. The answer is, you
should look at these advertisements as you would an ad for a Hamburger; they
are just trying to sell you something and giving you the upside. In the ad for
the burger, they push the good taste of the burger and not the calorie count,
it’s the same for the reverse mortgage, they push the security and not the
pitfalls that many have had.
In doing research for the reverse mortgage, I was amazed at
the different strategies that may be beneficial to retirees in the use of the
reverse mortgage, but many people who are in need of the reverse mortgage do
not have a portfolio that can benefit from these strategies, they just have
their home and they need to use the equity of their home to have a nice
retirement.
What I found is that many people who need a reverse mortgage
are in a desperate situation and when they see these advertisements they may
leap before they look. But the downside of the reverse mortgage can be disastrous
especially for those older retirees who after entering into a reverse mortgage,
get sick and can no longer stay in the home.
I wanted to give some advice for people, who are thinking
about a reverse mortgage, but it can become so complicated, the best I can say
to people is for them to do quite a bit of study and use multiple sources. I
read many articles from multiple sources and it still left me wondering, who is
the best candidate for the reverse mortgage. New rules have required lenders to
make sure the homeowner can still pay their property taxes and insurance, due
to the fact that many who in the past had enter into a reverse mortgage and
then were unable to pay those expenses ended up becoming homeless. You need
to decide if you think a reverse mortgage is for you, how you want the money. A
lump sum, payments every month or equity line of credit.
The decisions you make will be very important for your future
and finding the right bank and getting the best counsel will also be critical.
In this case when it comes to a reverse mortgage you really need to look and
look hard and long, before you leap.
A.D. Cantelmo Property
Management Specializes in Property Management in Orange County
Ca.