While we continue to hear about reverse mortgages as a last resort, more are turning to it as a tool for the affluent marketplace as a vehicle for advanced planning. Paul Savery, a reverse mortgage consultant with Wells Fargo told the Norwich Bulletin that some people are using a reverse mortgage to buy or improve a second home.
With housing prices at record lows, some wealthy homeowners are going bargain hunting with their reverse mortgage credit line as a way to close quickly on homes that are being sold at distressed prices.
The article also describes other strategies of how you can use a reverse mortgage as an estate-planning tool which is something that will eventually be more common, but so much attention being brought on people using reverse mortgages to purchase shady investment products, I was surprised to see the article.
What’s not clear is how long it will take until using a reverse mortgage as a financial tool rather than a loan of last resort becomes a reality. Thoughts?