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Home Equity Loans- Reverse Mortgages
EXPOSED
I wasn't born a
skeptic. Actually I'm probably more naïve than not. But over the
years, thru life's travails, I have become one. Maybe being married
to a pathological liar for twenty plus years had something to do
with it-but I digress.
When I first heard about reverse mortgages, maybe
three years ago, they were still in their infancy and it seemed as
though there wasn't much information available-which fueled the
skepticism. Gradually I started hearing and seeing more about
reverse mortgages-but it was all on the upside-there seemingly was
no downside-which again fueled my skepticism.
So I went looking for trouble and guess what? I am not having any
luck at all. Could this be better than sliced bread? Well for sure
reverse mortgages are not for everyone. For those who are eligible
they can be a Godsend.
HOW THEY WORK
In a regular
"forward" mortgage you make payments to reduce the debt and build up
equity. In a "reverse" mortgage you reduce equity and build up the
debt
As of this moment RM is the fastest growing product in the
marketplace. There are five more RM products to hit the marketplace
in the next year and the market segment eligible for these products
is the fastest growing demographic in the country-BABY BOOMERS.
There are several reasons for this popularity. Here are just a few.
INCOME VERIFICATION : There is none. Even if you have no
money coming in as long as you meet the eligibility requirements you
are good to go.
DEFAULT FOR NON PAYMENT : Non payment of the loan is the
biggest reason for foreclosures. There are no payments eliminating
that headache.
PROCEEDS USES : The borrower can use the proceeds any way
they want.
Yes Virginia, it could be the best thing since sliced bread.
It does appear as though reverse mortgages have no downside if
you've done your homework and if you qualify. For more and more BABY
BOOMERS coming of age maybe there is a pot full of money at the end
of the Rainbow.
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