Blogpost discussing this topic…..as promised!

You are correct, there are many issues to discuss with ANY potential borrower, especially so when one is going to come off of the title in order to qualify.

Without missing the tip off, I can assure you that a)this particular case involves an incredibly well informed, well protected couple, and b) I NEVER try to advise anyone one way or the other, only recommend that they fully educate and protect themselves! They have covered all of the issues that you point out and then some!

I look forward to discussing this topic further, as it indeed needs to be covered in detail.

Boy, where to start. It seems appropriate that the Legal Eagle brought this up even if it could have been done more delicately.

I have heard too many in this industry give the very poor advice that if the wife has adequate life insurance, all will be well or at least be taken care of in cases like you describe. I do not know what happened in this case but it gives me the opportunity to bring out some important points.

I read that you discussed this with the wife at length; that is good. Did you advise her or better yet insist that the wife in particular seek the counsel of a legal advisor?

The problem is the wife no longer has any interest in the home. What happens in the case of divorce?

Under applicable state law is the life insurance policy owned by the husband, the wife, or both? Can the husband force the wife out of the home in case of divorce and also cut her off as the beneficiary on the life insurance policy or on his portion if owned jointly?

Does the wife make sufficient income so that if she owns the life insurance policy she will be able to pay for it following divorce? What about “blended” families and implications on inheritance again in case of divorce?

What about the loss of the step up in income tax basis in case the wife dies before the husband? There are so many issues.

Loan officers more so than even counselors who advise on these issues need to have substantial E & O insurance. Even as a CPA with a masters in taxation and with specific training, knowledge, and experience in this area, I always advise borrowers in such situations to seek the advice of a competent and knowledgeable practicing attorney who is experienced in such matters. I hope you do the same and do not treat it lightly.

Too many insurance agents believe that insurance is the answer to all too many problems. It is simply not the case. Life insurance in particular only provides financing to the person who is the beneficiary of record at the time of the insured’s passing, who may not necessarily be the wife who was taken off of title even though she may have survived the husband.

Be careful when giving advice. Things are many times far more complicated than they appear. Again I am certainly not accusing you of doing anything inappropriate or wrong but your statement opened the door to bring up the foregoing points.

That’s enough. On the West Coast, it is the start of the weekend and the Lakers are about ready to play. Mr. Reichard, I hope you have a great weekend.

We were discussing on line social media, I used an example to show that an under 62 year old found me, and the Eagle wants to go in that direction…..(FOR THE RECORD, she has life insurance policy in place to cover the loan in case of the older spouses death, we discussed this at length prior to her counseling….)

So…..next week, I will update my video blog(which you can find on iTunes), and cover building an online brand. You can also find the blog here: http://www.thereversemortgageschool.blogspot.com/ and subscribe. Maybe you are on twitter? ( @thereverseguy )That way, the Critic and others can comment directly to me next time, making personal or not!!

Have a great weekend as well!

Have a great weekend, too!

This is very true, but I am still not helping

Personal Opinion: You share “everything” to market yourself, not to help people. If I am wrong, I am sorry for offending you.