The con game never stops:

As long as there is a buck to be made and people to put the burn on, the elixir salesmen come out of the woodwork trying to beat up on the old and feeble minded people.

Reverse mortgages in my opinion is one of the worst situations any senior can put themselves into; that is unless a person/people are desperate and have no other options.

If we all remember only a couple of things in our life it can save us a lot of headaches. Don’t trust anyone; people have to earn trust, it should not be easily given out – If it sound too good to be true, 99.9% of the time it is – buyer beware.

These are some of the very persuasive spokesmen that the reverse mortgage companies hire to do their video con jobs. They are well known celebs and have that appealing demeanour  and the trusting voice that most people are taken in by.

Case in point:

If a guy is selling a car and has no idea that the transmission is going to fall out if it in a week, I can understand it.

If that same guy is selling a car and put some rubber bands and duct tape on the transmission to hold it up for a week knowing it was going to falls out; that guy is very deceitful. I have to be careful of my adjectives. What more do I have to say.

I knew the first time I saw these commercials on TV that the reverse mortgages were not as good as these dashing salesmen made them sound.

Below are some of it’s pros and cons.

http://www.dummies.com/how-to/content/the-pros-and-cons-of-a-reverse-mortgage.html

Negative aspects of reverse mortgages

Among the negatives of a reverse mortgage are the costs involved. All mortgages have costs, but reverse mortgage fees, which can include the interest rate, loan origination fee, mortgage insurance fee, appraisal fee, title insurance fees, and various other closing costs, are extremely high when compared with a traditional mortgage. Costs vary but can be as high as $30,000 or $40,000. This cost is not paid out of pocket, but rolled into the loan.

Another potential issue to be aware of is the requirement to pay back the loan if you should permanently move out of the home. This may not sound like a problem now, but if you ever need to enter a full-time care facility, the loan would become due if you left your home for a year or more.

The final downside to the reverse mortgage affects your estate. The reverse mortgage will almost always decrease the equity in your home, which will leave less money to your heirs.

 Remember: Don’t trust anyone; people have to earn your trust, it should not be easily given out – If it sound too good to be true, 99.9% of the time it is – buyer beware. When is the last time anyone called you up to take you on a free 2 week vacation? It just doesn’t happen unless there is a hitch.

The sharks are always looking for the smaller fish to gobble up.

Always read the fine print – if you don’t understand it or they made the lettering too small for you to read (tricks of the trade); hire an ambulance chaser to explain it to you.