Reverse Mortgages are, and continue to be, an important source of cash flow for older Americans looking to retire comfortably. In addition, reverse mortgages are also available as a retirement planning tool for retirees who are financially stable but want a safety net at their disposal when, and if, they’re not.

It begs the question then, why do reverse mortgages continue to be underused despite their benefits?

Part of the problem stems from consumers being unaware that the problem even exists. The Home Equity Line of Credit continues to be a source of income for homeowners hoping to get rid of their debts before retirement. However, they dig themselves into a bigger hole in the process because a Home Equity loan has to be paid back, via monthly payments, in a set period of time.

Homeowners do not have to make monthly payments on a reverse mortgage until the loan becomes due.

The Mortgage Professor breaks down a list of why reverse mortgage continue to be under-utilized and the biggest hurdle continues to be consumer impressions.

For example, an article in the Los Angeles Times, dealing with a private reverse mortgage, is billed as newsworthy because, as the Mortgage Professor states:

“A senior being evicted is newsworthy, even though the senior was a boarder in the house and not covered by the HECM contract, while the favorable experience of almost all HECM borrowers is not news.”

What this article, and many others, fail to point out is that private HECM loans no longer exist. Every HECM loan is FHA-insured, which mean that “newsworthy” stories fail to report both sides of the coin.In addition, consumer organizations have not supported reverse mortgages and have openly been ambivalent or hostile in regards to the program. The fact of the matter is,reverse mortgage success stories do exist but news sources fail to report the good they have done. Not all publicity is good publicity, so it’s important to consider we you do your research beforehand.Celebrity endorsements, used by major lenders, have caused a negative image that has been hard to rub off. At PS Financial Services, a reverse mortgage company in Florida, we don’t use celebrity endorsements, because we have no need for it. Our actions, and clients, speak for themselves. They are real people who have done a reverse mortgage and are happy with the results.The last point the Mortgage Professor makes is “HUD/FHA have been unable or unwilling to do anything of an educational nature that would counter these negative influences.” The National Reverse Mortgage Lenders Association, however, who responds to every “negative or inaccurate article, broadcast, report.” They’re not hiding, the spotlight just isn’t on them.If you think a reverse mortgage is right for you or simply have questions, PS Financial Services know by calling (888) 845-6630 or emailing us at info@PSReverseMortgage.com. Let our actions speak for themselves. Click here for more information about the elimination of the reverse mortgage program as we know it: