“Reverse Mortgage May Grow in Popularity…”
The reputation of the reverse mortgage as “a loan of last resort” has made many future borrowers wary of even considering it unless they are in a dire situation.
This is the biggest hurdle for the reverse mortgage program moving forward, possibly the most important.
It’s going to be an uphill battle, especially where consumers are concerned. Despite, the many people who are putting forth the effort to change the reputation of the program, consumer faith is what will determine, in the end, if we are successful or not.
Up to now, reverse mortgages have been on the outskirts of retirement planning, however, financial planner Steve O’Hara stated in an article published by MarketWatch that he has faith the program will only grow in popularity over the next decade:
“It’s a tremendous safety net. People today who would tell you they’d never want to use [a reverse mortgage], 10 years from now, some will have to use it.”
Why the sudden change?
I think there is a stigma around reverse mortgages that, either for lack of education or excessive negative media, have dominated the reverse mortgage’s reputation.
Have there been consumers who have had a negative experience with a reverse mortgage? Yes but that doesn’t mean that all reverse mortgage loans lead to bad experiences. The problem is, consumers’ brains have been conditioned to think of reverse mortgages as “bad.”
Moving forward, however, consumer perceptions must be changed if the program is going to survive and become better in the future. Most importantly, the reverse mortgage industry, myself included, will have to spread the word and make sure that reverse mortgage success stories are the first thing people see.
There will always be cons to any decision, there will always been unsuccessful transactions, there will always be disgruntled consumers who have had a bad experience, but all of that is just a PART of an industry, not the WHOLE industry.
I think once consumer perceptions change, and the reputation of the program becomes a more accurate and balanced, the popularity of the program will grow in the next years. I’m ready for what comes in the future because it will mean helping more seniors age in place, downsize, or have a safety net for the future.
Interested in the reverse mortgage program or have any question? Give PS Financial Services a call at (888) 845-6630 or via email at info@PSReverseMortgage.com. We do not pressure those who inquire. We are simply here to help.