Reverse Mortgages - The Next Venue for Skunks?
Is the Reverse Mortgage the next instrument of easy profiteering for the sociopaths looking to line their pockets at the expense of others?
Now, don’t get me wrong – the reverse mortgage will make sense for some and will be the right choice. But, when we get the same over-the-hill celebrities that encouraged consumers to use their homes as ATM’s pushing the reverse mortgage – it makes the hair on the back of my neck stand up.
We wrote about the reverse mortgage and our concerns back in May.
Blame my outburst today on the Contra Costa Times for this article.
Since then, we have noticed more air time for “Fading Stars with NO Conscience.” It sickens me how these celebrities, whose futures are more secure than the elderly they prey on, can continue to move from one fleecing program to the next with no apparent loss of sleep.
I can hear them now – I’m just advertising a product. It’s up to the consumer to use their head, their attorney and accountant to see if a reverse mortgage is right lfor them. How many time have we all heard that?
It’s true that people need to use common sense, seek good advice and be accountable for their decisions and actions. But this “Old Crow for Lunch Bunch” is, in my opinion, once again abusing the public’s trust for personal gain.
Did you notice how slim the Real Estate section was in today's Times (8 pages)? Is it the holidays, abandonment by Realtors now placing ads online, a combination of both, or something else?
December 31st, 2007 at 5:02 pm
Whoever wrote this article is an absolute idiot and has probably done no research whatsoever.
December 31st, 2007 at 5:14 pm
Dan - this is a great comment. It shows you didn’t really read the post. Talk about lack of research!
The article isn’t about the pros or cons of reverse mortgages. It’s about the potential for reverse mortgages to become the next sub-prime mess.
The article in the Contra Costa Times makes the point well. Again, lack of research on your part before initiating an ad hommeni.
The article referenced in the May post also calls attention to the potential for abuse.
If you take a moment to read what I wrote, what bothers me the most are the celebrities that encourage people to get home equity loans, borrow cheap money, get a reverse mortgage or whatever. These folks have gained a certain amount of trust through their celebrity status and use it like their is no need for them to consider the consequences of their endorsement.
I am referring to the same old faces we see time and time again doing this type of thing.
Funny, I don’t feel like an absolute idiot, but I am willing to consider it.
December 31st, 2007 at 6:23 pm
Hi John,
I would have to agree with your point of view regarding the reverse mortgage products being a potential mess. They are beneficial to a few elders with who have the right circumstances. My mother - 91 years old, contacted me last Summer about getting a reverse mortgage on her home in Huntington Beach. It was in response to a T.V. ad she saw with some celebrity endorseing the product. If she had not called me for advice because I was a Realtor, she may have jumped into a real mess with the only real asset she had left -the equity in her home. It is probably not a product for most elders, and… I am sure it can be set up very responsibly by the right mortgage counselor. But, the reason for the aggressive ad campaigns pushing them is because the elders in our country probably don’t have a Realtor for a son to call and ask for his opinion. I will keep following your thoughts on this topic.