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2011-04-27T04:13:00.000-07:00

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Reverse Mortgage Calculators - a warning about HECM reverse mortgage calculators

2010-11-15T05:00:00.000-08:00

This video is a short expose' on reverse mortgage calculators. What do you need to know about calculators? Watch this video and learn all about it today!

HECM Reverse Mortgages - why working with seniors is better than you think!

2010-11-09T10:33:00.000-08:00

Links to the two stories I mention:
NY Times article about the "Sandwich" Generation
Retirement Train Wreck? - Wall Street Journal

HECM Reverse Mortgages and a REALITY CHECK on home values

2010-11-01T08:33:00.000-07:00

HECM Reverse Mortgages and a Reality Check on Home Values
Links to Videos and Articles:
Emergency Alert on Home Prices
The Foreclosure Calamity - MSNBC
Does the Government want to fix this mess?
Future of Housing Finance
The foreclosure mess could last for years
US home prices expected to slide another 8%
Downward Spiral for Housing?

HECM SAVER vs. HELOC - what are the differences?

2010-10-26T07:19:00.000-07:00

Born on October 4th, the HECM SAVER is a new, low cost option for seniors that enables them to tap into the equity of their homes as needed via a credit line. This video takes a look at HELOC loans, HECM SAVER loans, and the 6 things you should examine between the two.

HELOC - Defined on Wikipedia.com - click here

Memo commenting on new HECM SAVER - From the Desk of David H. Stevens, HUD's Assistant Secretary for Housing - click here

To get your HECM Saver options in black and white, email me anytime and I will make the extra effort to serve you in the timely and professional manner that you deserve!

Reverse Mortgage Video Blog - October 18, 2010

2010-10-18T08:11:00.000-07:00

This latest Video blog post contains information for seniors and the families that are actively looking for reverse mortgage information, advisors that are recommending reverse mortgages to their clients, and to reverse mortgage originators themselves. I share my thoughts on the recent changes, appraisal issues, banks vs. brokers, and more.

Links to my resources in the reverse mortgage industry, etc:
www.reversemortgagedaily.com
www.reversereview.com
www.reverseinsight.com
www.dennishaber.com/
www.reversefortunes.com
www.loantoolbox.com

More Reverse Mortgage news from the web....

2010-10-14T07:39:00.000-07:00

New PBS Video about the HECM Saver:

Watch the full episode. See more Nightly Business Report.

Here is a link to a new article from the SFgate.com: Click Here

and here is the latest regarding the foreclosure crisis: click here

Buy a home with a reverse mortgage

2010-10-07T07:24:00.000-07:00

Buying a home with a HECM reverse mortgage is a reality, check out this video to learn exactly how it works.

The 'perfect' reverse mortgage

2010-10-06T05:47:00.000-07:00

I wanted to share with you a story that will show you how a reverse mortgage has helped someone to the point that I'd like to label it "perfect" for her. The perfect reverse mortgage...

I met "Ms. Smith" at an educational meeting in Boca Raton, her eldest son joined us to learn more and to see if a reverse mortgage was right for their specific situation. Her son and I spoke at length during and again after the meeting, and I spoke to Ms. Smith several times prior to meeting her to get her loan application completed and submitted.

Her story is like many I have heard over the years. She has come to the point in her life in which she simply needs more money every month to keep her budget in line with her income.

Her husband had recently passed, and as many of you know, when a spouse passes away, the social security benefit and pension benefits disappeared as well. When you combine a massive decrease in her 401k plan, the economic meltdown in the U.S., and of course, her home value in south Florida plummeting from the height of the market, she needs help - and she needs help now!

Her children are comfortable and doing well, and they all let me know that they are not waiting for their mother's home, nor are they waiting for the money that would result from a sale if she should pass away unexpectedly. They want their mother to live as comfortably as possible, regardless of what is "left over" for them in the end.

This is a critical piece of this case, as some pundits object to the reverse mortgage due to the fact that it decreases the amount of cash that the heirs will inherit. I have strong opinions about this. In most cases, the senior parents paid for the home, and made sure that their children were fed, educated, taught right from wrong, and also made certain that they were ready for the world when they became legal age and went out on their own. Now, in their senior years, the parents are supposed to hoard the equity in their home in order to give it to the kids instead of bettering their own lives when they need it the most?!

This is simply NUTS to me. Kids become adults, and for those adults to be in waiting for the cash that comes as a result of their parents demise is simply not something that I have respect for. Especially when the senior is suffering financially and has the ability to tap into what they have amassed.

The reverse mortgage is designed to allow the senior homeowner access to the cash that they have built up as equity in their homes, plain and simple.

The reason that I call this particular situation the "perfect reverse mortgage" is this: When you look at what the senior client wants, the history of the property, the need for money, and the desire to remain in the home for the next several years, it all adds up to a perfect need for a reverse mortgage.

WHAT SHE WANTS TO DO
Ms. Smith is a happy woman, and has very clear plans for her future. She wants to live in the home for the next 5-10 years, and when she cannot physically keep up the property, she wants to downsize to a condo near the ocean.

SIMPLE MATH
Now for the numbers involved. Mr and Mrs. Smith bought their home 37 years ago for less than $40,000. They paid off the mortgage after 25 years, and now own it free and clear. It is worth about $290,000 today. She qualifies for just over $188,000 in cash with a fixed rate FHA reverse mortgage loan. Her plan is to use about $10,000 per year for her needs. She revealed to me that she loves her home and wants to stay there for another 8-10 years.

Here is where this loan, in this case, becomes perfect in my mind. Ms. Smith is aware of the fact that congress recently approved using s HECM reverse mortgage as a purchase product for seniors. Her plan is to stay in her home as long as she is comfortable and able to maintain it and enjoy it as she does today. In ten years, she will have AT LEAST $90,000 remaining in her account from her reverse mortgage proceeds. (I am keeping it simple here, eliminating the guesswork involved with how much she can make on her money, through investments, cds, or simple interest) That means that she will have the ability to use some or all of that money to move into her next, smaller home, and never have to worry about mortgage payments. Simply put, she will put DOWN about 1/3 of the purchase price using the HECM for purchase, move in , and have no future mortgage payments, ever.

In summary, Ms. Smith gets the cash she needs to be comfortable, is guaranteed never to make a payment on the loan, is guaranteed to never be forced to move, and will have the reserve funds available in cash to downsize if and when the time comes. Her heirs are not waiting for her money, they have her best interest in mind above any financial gain.

I have seen several uneducated journalists and congress members choose to label reverse mortgages negatively in order to gain attention. I see this as irresponsible, as the majority of seniors who have one say that they would do it again in a heartbeat, and if anyone actually does their homework, they would find that Mrs Smith joins over 500,000 seniors across America who have tapped into the equity of their homes to assist them with income in their "golden years." She also joins the 93% of seniors who agree that the reverse mortgage has improved their quality of life. Is the reverse mortgage "perfect" for every senior? I am not stating that at all, every situation is different! For Ms. Smith however, it was indeed the perfect reverse mortgage.

New HECM Document Library

2010-09-30T09:22:00.000-07:00

My new 'Document Library' is up and full of useful information for a variety of audiences. Simply click on the links located on the right of this blog and get instant access!

- For Seniors and their Families: The NEW National Council on Aging (NCOA) booklet - required reading prior to counseling sessions
- HECM Reverse Purchase Guide for realtors
- HUD's approved guides
- What to expect during counseling guide
- Link to HUD's Reverse mortgage page / Document library

I will be adding docs as they become available, check back to get the latest info you need for you, your family, or your clients.

New videos coming soon

2010-09-29T05:21:00.000-07:00

Click on any of the video clips on the left of this page and learn a bit more about reverse mortgages and how I may be able to assist in properly educating you about these end-of-life financial tools for seniors. I will be publishing some new videos in October - including videos featuring information on Buying a home with a HECM, the NEW HECM saver product, and new counseling protocol including the important documents you will need. Feel free to call or email me with any questions, anytime ! 954.304.4592 or Email me - click here