“Realtors Need to Know About Reverse Mortgages…”
This is the headline in Reverse Mortgage Daily that led me to an article published by Inman.com detailing the benefits of a reverse mortgage for retiring seniors (when done right) as well as the pitfalls (if it is done incorrectly).
One of the highlights of the article was contributor Bernice Ross’ discussion on the Reverse Purchase or HECM for Purchase, which allows borrowers to purchase a new home to age in place while getting a reverse mortgage all in one easier, less expensive transaction.
Even more important than what a reverse mortgage can do for homeowners is the fact that realtors should know about reverse mortgages, period.
It’s not to say every client a realtor comes across will want, or even need, a reverse mortgage but it’s always good to know for the future…just in case.
I find that most of the misconceptions that come from reverse mortgages are because of lack of education and past mistakes, not done by brokers, but by big name banks or private lenders who had no affilation with HUD or FHA.
Of course a reverse mortgage not insured by FHA would be a bad idea. I would not reccomend nor complete a transaction for my clients if the loan were not insured by FHA. The only way this would even be advantageous would be with a jumbo loan, and even then it’s at a higher risk to the borrower than with an FHA-insured reverse mortgage.
Most importantly, realtors who have educated themselves on reverse mortgages can now offer them to their clients with the piece of mind that the program is now better than ever. It’s easy to brush off something because of “what we’ve heard” but it’s also important to remember, success stories are not “newsworthy” even though they exist.
In addition, if we don’t take the time to educate our clients, who will? I’ve read many stories on Active Rain about clients who think realtors work for free or consultations are a limitless, free service, but these are not true and who better to clear about the misconception but us.
If anything, the article is about giving reverse mortgages a chance. It may be the one of the best decisions you make for yourself and your clients.