The reverse mortgage industry has gone through many ups and downs in the recent past. With the recent economic stimulus bill, the reverse mortgage industry is all set for a bright future. More and more American seniors have realized that they can use their property to get additional monthly income while still continuing to live in the same property legally. So the demand for reverse mortgages is all set to grow exponentially several times when compared to the growth rate in the yester-years.
There is an unrecognized side or underpinning of the reverse mortgage industry as we all know it. What is not always obvious to seniors seeking a reverse mortgage is that the closing costs and origination fees are subtracted from the moneys available through a reverse mortgage. The risk to the lender is very little, in the case of a reverse mortgage. This is because the lender is protected because the borrower's house is available as a holding stake.
Also, there are one too many reverse mortgage lenders in the market these days, and the myriad of available options can be confusing to the prospective borrower. So it is advisable (as well as mandatory) to go in for counseling before taking up a reverse mortgage offer and also to make use of online reverse mortgage calculators.
The Reverse Mortgage arena has now grown into a multi-billion dollar industry. Senior home owners are taking more than 150,000 reverse mortgages every year, as statistics would put it. People who took reverse mortgages say the money improved their lifestyles and met their retirement financial needs. But there are people who have sought reverse mortgages — in lawsuits and surveys — who have complained about high-pressure/unethical sales tactics used by unscrupulous reverse mortgage lenders they say steered them toward reverse mortgage loans with high fees. Some people have said they were forced to put the proceeds into questionable investments.
So it pays to be aware of the "dark side" or "unrecognized side" of the reverse mortgage industry to be well-informed about the topic.