Reverse Mortgage A Good Deal For Me

As I have said before, it never ceases to amaze me how many idiots out there are still lumping reverse mortgages in with scams against seniors.  The author of this Bloomberg  Business Week article must have been hard up for something to write, so he chose some topics he knows nothing about, including reverse mortgages.  He wraps these in with what he calls unsuitable investments, and says they are a big part of many scams.  Today’s federally-insured, Home Equity Conversion Mortgages do not differ very much from any FHA mortgage loan except for the unique property of not having any monthly payments.  And, with all of the required disclosures and the required counseling for borrowers, these loans are less prone to scams than any other financial transaction I can envision.  The author should be holding reverse mortgages up as a shining example of how senior consumers are protected.  Of course, where fraud exists, it should be prosecuted vigorously, but this type of scandalous generalization just discourages people from seeking legitimate financial help for their retirement years.  Mr. Leondis has done nothing to help.  He is just trying to generate readership with made-up headlines, like the news rags you see in the checkout line at the supermarket.  If you want the truth, read this letter from a happy reverse mortgage customer, who now admits that he was wrong about reverse mortgages and says he is extremely pleased that he has one.  The writer says, “If people own a home, they can eliminate financial obligations and make life more at ease.   I did it, and have no reservations.”