What Would That Actor Do? It’s not his first rodeo? Does that mean he took out a reverse mortgage? You can bet he has not. I find actors more credible when they actually use what they sell. Actor’s get paid to pretend and he is good at that.
If you are a homeowner with a mortgage and having serious financial struggles, then the ad for a reverse mortgage may come across as a miracle cure.
Get the pros and cons yourself before moving in that direction.
I would like the ad to tell the whole truth, so you can make a better informed decision before some pressure salesman gets you to sign up.
Lenders do these loans to make money, so they are not your friend. If you default on the agreement, the lender can foreclose, then sell your home at a low value. You and your family may lose a valuable asset.
Ways to lose:
- Having to leave the residence
- Not being able to pay the taxes, insurance or home maintenance costs (I put that in italics because that’s an unknown variable that could be expensive – think new roof, new septic)
- Higher adjustable interest rates accruing for the length of the loan
- I am not going into the pros since the actor already did that.
- A refinance or equity loan may be a better choice for you.
- Or consider renting out a room.
- If your financial emergency is temporary the bank may permit. you to defer a payment.
- Bankruptcy – this is not an easy choice but I put it in because it is something to consider. A thorough consultation with a good bankruptcy lawyer may be the best thing you can do. Did you know you may be able to save your primary residence while getting help eliminating other debt? I once worked as a legal assistant in such an office and saw how people could “breathe” again with less stress after going through the process. Not all of them needed to do the bankruptcy, but they did get good counsel and learned what their options were.
PS. Disclosure: I have not taken a reverse mortgage. But I do know of one who did and later regretted it.