Reverse Mortgages are Subprime Loans?

“A lot of these activities are illegal. We have a high rate of senior citizens and immigrants here, and these lenders are preying on the elderly with reverse mortgages that are really subprime loans.”

         – Leroy Comrie, City Councilman (D-Queens).

In today’s New York Daily News there is an article that discusses how subprime loans are leading to record amounts of foreclosures in the city’s poorest neighborhoods.  Councilman Leroy Comrie states that, “these lenders are preying on the elderly with reverse mortgages that are really subprime loans.”  While the article goes into detail about the large increase in foreclosures there is no mention of how a reverse mortgage can help seniors avoid there house being foreclosed on.  Its articles like this that give the public such a negative opinion on reverse mortgages and it’s sad that Councilman Comrie is “bashing” a product that could really help the problem he is complaining about.

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Subprime mortgages lead to record foreclosures in the city’s poorest nabes

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  • I am a reverse mortgage lender. I work exclusively with seniors who are in foreclosure. I have developed a network of legal aid attorneys, foreclosure counselors, and public officials throughout the state of Florida. We save their homes. The attorneys examine the original mortgages for improprieties and evidence of predatory lending which they find in 90% of these cases. This gives us the leverage to negotiate a short pay. If we need to bring out the big guns we have a local official contact the lender and express that it is not in the public interest to have these homes become vacant. If we are successful, the clients get to live out the remainder of their lives in their homes without a mortgage payment. By denigrating the product the councilman is making it that much harder to help these people.
    Jules J. Dobrowolski, J.D.
    Operation: SHIFT (Senior Homes In Foreclosure Taskforce)
    St. Peterburg, Florida
    727-460-7852

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