Gene Mundt - Let's Talk Mortgages & Real Estate!

      I've been inundated with responses, emails, calls, and conversations regarding the Reverse Mortgage posts on AR over the last couple of days.

Wow!  This is a topic that gets people talking!  Rightfully so, as it's important. 

     I had mentioned in my Reverse Mortgage post on AR that I was concerned about the tone displayed in the ConsumerReport's latest magazine article regarding this topic.  I wanted to clarify that I am typically a real CR fan and find its' reporting to be un-biased and fair. 

      On this particular topic though, I've sensed a little different "flavor".  Maybe their approach is a good thing in some ways.  It certainly raises the visability level of the topic itself and gets the point across to seniors that a mortgage of this type is not something to enter into lightly.  That's all good.

    My reason for writing this follow-up is not to just continue any debate.  It is simply this ... Within a ConsumerReports follow-up article (same issue as the main report), they included some options for seniors to consider versus and prior to taking a Reverse Mortgage.  

    One bit of information offered within that article stood out for me. 

      CR writes:  "Most states have a government agency to match seniors with local resources and programs to meet their needs.  Also check out www.benefitscheckup.org, a screening service that checks older adults' eligibility for various public and private benefit programs in all 50 states and the District of Columbia."

       Being aware of this informational resource might prove of great assistance at some point.  I thought it worthy of an additional writing.

      Keep the dialogue flowing ... 

Sometimes you find pearls of wisdom when you least expect it ...

     Yesterday's blog on ActiveRain by Dan Pena titled  "Why do we need Reverse Mortgages?" was that kind of find. 

       My mind had barely digested Dan's powerful blog when ... what do I find in my mail?  The latest ConsumerReports magazine (Sept. 2009) with a lengthy article concerning Dan's very topic ... Reverse Mortgages. 

      The CR magazine article was of quite a different tone than Dan's blog.  The sub-title read a little like something you'd find in The Enquirer.  "The next financial fiasco??  It could be reverse mortgages."   Very ominous.

      Now, to their credit, ConsumerReports is providing a boat-load of information, facts, and figures within their article.  But for every plus described, there are multiple negatives written. Sometimes very dramatically. 

     The words chosen to describe Reverse Mortgages are even scarey sounding.  CR tosses around the terms and words "lending lures", "on the hook", "unfortunate situations", and "worrisome trend" throughout the pages.  If they are trying to scare seniors from researching or considering these loan products, it probably worked!    

     The truth of the matter is, like any other lending product, Reverse Mortgages can be written by ethical, intelligent, and well-meaning individuals like Dan Pena, who is obviously a caring professional and trying to do right by his clients ... or they can be written by opportunistic snakes that take advantage of every situation they can.  We've seen it before, as evidenced by our current housing and mortgage crisis and unfortunately, we will most likely see it again in the future. 

The snakes are smart and sneaky and always seem to be able to slither a little faster than our laws and regulations can be written.

      In the meantime, our mothers, fathers, and grandparents need to be protected and educated regarding these mortgages.  Educated PRO and CON.

        WE need to be educated too as sons, daughters, grandchildren, caregivers, and friends.  In two separate blogs, written in March of 2009 ("Reverse Mortgages - The Fact List") and ("Getting the Facts Out - Reverse Mortgages"), I provide some basic and preliminary information regarding this lending.  I can provide more info and guidance too ... but these posts are a good place to start when loading up on Reverse Mortgage facts and options.  Seminars, books, videos, and the internet are other opportunities for learning about this lending and Dan Pena is obviously a wonderful resource to be considered.  Search one of these learning tools out.

      The near future will see new changes enforced regarding these loans.  There is no doubt about that.  Stronger protections and more strict regulations will be demanded and implemented for seniors' benefit.  That is all good, for when done properly and in the right situations, Reverse Mortgages can provide income and assistance that some seniors greatly need.  Dan's blog showcased such a need in the clearest and purest of fashion.  

      Pearl of Wisdom for today? 

Reverse Mortgages must be allowed to survive for just these instances.