Just checking.

It seems you have read much between the lines which was not there. That being said, those are legitimate questions. Let me go through your post point-by-point.

People are being sold reverse mortgages that don’t need them. I suppose that’s true somewhere, but that’s why it’s important to find a reverse mortgage specialist who as a track record of putting the client’s needs ahead of their own. Believe it or not, there are more in that category than those who are not. You assumed a few things about their physical condition and their ability to maintain their home. In my experience in working with seniors, they know their limitations. They do not want to stay in a home they cannot maintain either physically or financially. I actually talked one would-be client out of getting a reverse mortgage because he had a 3 level home which was too big for him. His doctor even advised him to sell it and move. But, as I stated in my scenario, this person is able to still live independently. Maybe you missed that part.

You also use some graphic terms when questioning their ability to manage their “pot of gold”. Going back to your previous posts and my responses to them, you are eager to presume and label reverse mortgage borrowers as financially irresponsible and ignorant. I really would encourage you to avoid blanket stereotypes without even getting a chance to know the people.

You are also eager to point out that they can move into condos and the like. Yes, this is true. But you forgot the fact that they wish to remain in their home. This is not something to be ignored. People have the right to their wishes, as long as they are able. Your question about what they will be like at 80 is not their biggest concern because the chances they will live that long are slimmer than a 20 year old seeing his 30th birthday. That doesn’t mean this issue is ignored, but it does mean that if they want to stay in their home for the indefinite future, they have that right.

I am not a financial planner. So the answer to your final questions are “no”, and most definitely “no”. It seems you have some serious trust issues with not only reverse mortgages, but the people who offer them. Your cynical questions about “collecting and bouncing” and “dropping” these people is actually offensive. I would like to believe you do not intend to be insulting, but your cynicism is causing you to be very prejudiced.

I have worked with the adult children of clients who have had concerns about their parents’ ability to manage their newfound wealth. In some cases, my clients have added one of their astute adult children to their bank accounts for accountability. This is very wise. I also have relationships with qualified financial planners who are available to assist anyone in need.

I really do not want to continue going around and around on this. I do, however, want to encourage you, Zook, to be willing to accept that there are moral, ethical and qualified reverse mortgage professionals out there who genuinely have the best interests of seniors at heart. Many spend time volunteering in senior centers, retirement communities and such. Many have become Certified Senior Advisors, (CSA), and basically are dedicated to enhancing the lives of seniors.

Please be careful not to paint everyone with the same brush, and please be open to the fact that there are actually good people out there serving this precious segment of our society.

You are right though. Everyone who owns a pick-up truck NEEDS it like the air they breathe. They NEED that pick-up truck for the yearly trip to the Home Depot to get a few potted plants. Pick-up trucks are convenient, but aren’t NEEDED for many, many folks, yet they get sold them. Of course everyone needs to be high off the ground, everyone of course needs 4WD and 13-MPG.

Moving on….

People are being sold reverse mortgages that don’t need them, by folks that are savvy. These salesman now have another product to put in their arsenal to sell. And the financial markets and the elderly need another high cost, gimmicky product forced down their neck?

As far as the example you have in #23, the question asked has been phrased so the answer is “You need a reverse mortgage”. She has lived in a house for 40-years is 70-years old and recently took out $100K for what exactly? She doesn’t want to be a burden on her children, well who is taken care of the maintenance on a 40-year old home? It implies that at 70-years old withOUT money to pay for taxes and a $700/month note, that she should be in a house worth $500K to begin with. And that she could take care of the property, which I assume she can’t. There are over 55 complexes, there are condos with maintenance fees that shovel the snow and take care of the roof etc. etc. etc. What happens when she is 80-years old? Should she still be in the house she couldn’t maintain at 70? Will she be able to use the second floor? LOL. I mean say she pissed through the money? Then what? Someone who is in dire straits is all of a sudden going to get financial savvy with a reverse mortgage?

Maybe for this person in #23, a reverse mortgage is the answer. Do I trust someone selling reverse mortgages to give her the full story with other solutions? NOPE.

My question to you Corey. What does this woman do when she collects the “pot of gold”? Does she hire you for a fee to put the money to work or do you drop her/recommend her to someone?

The problem lies when the first step is OVER. Then what? Do you collect your fee and bounce?

I understand your frustration, but there is no point in getting personal. Most people tend to view life through their own perspective. I certainly am guilty of that.

On a different note, you do raise an interesting point on reverse mortgage being used by people for reasons other than bailing themselves out of financial high water. Here is an interesting article I read a couple months ago which is worth the time:

http://www.post-gazette.com/pg/07284/824509-68.stm

While some have needed the cash from a reverse mortgage much more than others, the growing popularity of this program is evidence of its benefit in a wide range of financial circumstances.

As she had already mentioned, Zook is only giving her own opinion. Zook also holds the opinion that nobody would ever have use for a pick-up truck.

It is grossly evident that just like some many people in his generation, Zook can only relate to herself.

Hi Zook. For the record, my very first comment to the original article, (#3), says exactly what you said no one would admit. That reverse mortgages are “not for everyone”.

That being said, that does not mean it is necessarily a “last resort”, either. In post #23, I had offered Dan a scenario and asked him to tell me how he would advise that person. So far, I’ve heard nothing but crickets. If you’d like to take a stab at it, I’d love to hear your advice.

To reiterate, (which I seem to need to do frequently here), I do not see the relevance in labeling borrowers as poor planners or anything of the sort. What difference does it make what path they took to get to where they are? It would be perfectly reasonable for that to be important if they could go back and do it over again, but they can’t. The fact is, they are where they are now, and they face certain options.

It is popular in our culture to attach labels to people. “Oh, they act that way because they’re Irish”. “They like that kind of food because they’re African American”. “They’re not fun to be around because they’re Virgos”. I mean, c’mon…does it really matter? Get past the woulda-shoulda-couldas, and get in the moment.

Perhaps today’s 20, 30 and 40 somethings will plan so well that reverse mortgages will be obsolete in 20-40 years. Time will tell. But one thing is certain now. They exist, and millions have benefited from them, and millions more will.

It’s a last resort for folks who didn’t save and don’t have their finances in order. I think I will say it again for effect. Reverse mortgages are probably life savers for SOME, but in general, getting one means you screwed up pretty good along the way.

And what do I say to someone who bought a house in 1955 for $10,000 in Los Angeles and now are selling their 3-bedroom, 1-bath for $750,000?

TO get back to the article, Corey mentioned in #7 that this article sang the wrong tune to the wrong crowd. I can agree with that. The blogosphere, I would like to think, is over-run with 20-40 year old’s with solid understanding and knowledge. The articles I run across discuss saving, opening a Roth and preparing to not have Social Security. The headlines rarely mention reverse mortgages as it’s not something to strive for.

This statement was from Dan in post #22.
So, what you’re saying is that every single person would have the exact same circumstances which caused them to get a reverse mortgage?
Let me ask you this. Do you think that anyone who gets an Option ARM is an idiot?
If so, you will find people who didn’t plan properly for them and only paid the absolute minimum payment, while there will be others who not only paid more than required, but they paid for the mortgage in full BEFORE the rate adjusted.

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This one is from Zook:
“It is a good sales pitch to tell that elderly person how great of an idea it is that they didn

WEAK my man, really weak.

The fact that people like you approach the internet as a place to misinform others is disgusting. You should be ashamed of yourself with your name calling and foul language. No wonder you must hide behind the “Zook” moniker.