As Portfolios Fall, Seniors Look to Reverse Mortgage

Posted by Charles D

November 3, 2008

Thank goodness that the entire country are not homeowners that purchased their home in 2005 with no money down and currently live with negative equity. It seems that the mainstream media would you believe this, but what about the seniors that have owned their homes outright for the past 5, 10, or even 25 years? Thanks goodness for fiscal discipline or who knows where this country would be.

National Public Radio recently featured a story regarding said seniors that are more than one trick ponies. As their portfolios may have fallen they have other investments to fall back on including their real estate holdings and adult children whom they have sent to college and given fiscal responsibility. I hope this generation can learn some difficult lessons during this downturn.

New rules go into effect Saturday that should remove some of the risk from reverse mortgages and make them more accessible. Demand for reverse mortgages has been growing as retirement accounts have been hit. Some retirees now must tap the value of their homes to maintain their standard of living. Hear the story.