I recently read an article in the Tampa Bay Times. Although it was posted on May 30, 2014, I stumbled across it on a mortgage news daily post. Being in the Tampa Bay market myself and having a small, yet efficient mortgage consultant company, I felt compelled to blog about this ever interesting topic. With residential mortgage lending in general on a roller coaster ride like topic of discussion, it’s sometimes difficult to decipher what is correct and true. The lines become ever so blurred as we try to take the information we have and make heads or tails of what we think is best for us. Per the article, the writer discusses how an elderly couple have seemingly hit a brick wall and basically lost their home due to the complexities of a reverse mortgage. Although this is a very sad topic and I wish no one ever to go through something like this, I do see articles like this from time to time. Most often it is my perception that the intent of the article was to show that someone was taken advantage of by a complex loan that never had any hope in the first place. In my 12 year professional mortgage career I simply do not see that to be the case. Not at all. I am including a link to the Tampa Bay Times article at the bottom and you can decide for yourselves.
I will say that we live in a very fast paced, we need it now society. With marketing at an all time high, I can see why. Every corner we are blitzed with anything and everything and sometimes we can get very excited about what products are out there. Mainly homes and cars. These are higher ticket items that usually require financing. Now even though that doesn’t necessarily pertain to the article of the elderly couple. It does show that most of us are willing to finance items of this magnitude. And more often than not, those items are much more than we truly need for shelter and transportation. With that being said, it needs to be noted that anytime we consider financing something we purchase there is and always will be a certain level of risk. Those lending us money need to have contingencies or safety nets if you will to take recourse should any of the terms of repayment be broken. The only other alternative would be saving up enough cash and buying something then. Most of us would give a slight chuckle knowing that they just would not be able to do so. Ok, then financing it is. But we need to go in with a level of responsibility then in repaying that loan and making sure we have an overall ability to repay. I also know that sometimes things change and circumstances arise. But we must do the best we can in positioning ourselves in the most conservative approach. In the case of the couple in the article, it would seem that they were already near foreclosure with a forward paying mortgage. With the reverse mortgage it actually bought them 7 more years to live comfortably in their home during their retirement years. Sounds like they had some time to recover and utilize some sort of exit strategy and simply did not.
I always like to use this analogy – Gasoline is a wonderful product. We use it to fuel our vehicles and other equipment and it allows us to efficiently go from point A to point B quickly and safely. You take that same product of gasoline and mix it with fire and it becomes very destructive and sometimes deadly. We all know someone of the millions across this great nation of ours who lost their homes with a forward paying mortgage. Let alone a reverse mortgage. My point is simply this – it does not matter what loan we use. It simply comes down to how we use and execute them. Does my stock broker know which stocks and investments are going to do well for me? No. Not unless he has a crystal ball. It’s not his job to hold my hand 24/7 and make sure I make money. I think his or her real job is to advise me and help me strategically place myself in the best possible position for success. The same can be said for a me as a loan consultant. I deeply care about my clients and most often share with them the best consultation in the form of information about a mortgage and more importantly in availability. We’re all in this together. The sooner we can stop pointing fingers the better we’ll feel in trying to reach success as a community, a people and a nation.
Green House Mortgage is a full service home loan origination entity in Tampa, FL and servicing the state throughout. If you have any questions or concerns with the article or simply need mortgage advice please call 813-732-3155 or email us at firstname.lastname@example.org. We are dedicated to giving you the best mortgage consultation available. Green House Mortgage – It Pays to Go Green!
Tampa Bay Times article: http://www.tampabay.com/news/business/realestate/homeowners-caught-in-the-complexities-of-reverse-mortgages/2182178