“So Many New Companies Getting into the Reverse Mortgage Business”
There was a time when seniors that were in trouble with their mortgage or other debts could get a reverse mortgage and that was a good solution for them. They could end up living in the home for years to come without worrying about a mortgage payment. That is not the case these days. Folks in default or foreclosure cannot qualify for a reverse mortgage.
These days credit matters and a huge segment of the reverse mortgage market has gone away. The qualifying process is much more restrictive and even folks that have decent credit may not qualify. OK, so why are so many getting into the reverse side of the mortgage business?
The answer is simple; companies are looking for more volume. There are basically a handful of actual buyers of these mortgages, which means other lenders are brokering this business to these buyers.
My frustration with this segment of the market is that many really don’t need a reverse mortgage, but with all of the marketing many seniors will get hooked and do one of these mortgages and really shouldn’t.
Having said all that, we do reverse mortgages and for some it is the right decision and will allow folks to stay in their home for years to come. It takes a lot of understanding to make sure that a reverse mortgage is the right solution.
Image courtesy of Ponsulak/freedigitalphotos.net
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Joe Petrowsky, NMLS #6869
Right Trac Financial Group, Inc. NMLS #2709
110 Main St.
Manchester, Ct. 06042
Office: 860 647-7701 x116
Fax: 860 647-8940
Cell: 860 836-9294
Joe Petrowsky does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.
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