Ronni Bennett continues to document her reverse mortgage experience at Time Goes By.
In the latest segment, she writes Do Not Fear HECMs, and discusses her experience of trying to find a lender. Currently working with three different people, she writes:
All three, who deal only in reverse mortgages (no forward mortgages), are knowledgeable about the many details of HECMs and I was struck by how passionate and compassionate they are – two of them in particular – about helping elders to a more comfortable old age if possible.
According to Bennett, reverse mortgages have often been seen as a last resort and things that unscrupulous lenders use to fund annuities. While this is no longer allowed, “the belief that this happens hangs on – so much so that just about any explanation about HECMs, including consumer advocate organizations and mainstream media, includes a warning about fraud – almost always about those annuities that never pay out.”
Adding, “It is gradually being recognized, however, by people who take the time to investigate the reality of HECMs, that reverse mortgages can be one more tool in planning for a reasonably secure retirement.”
“There is no reason to be afraid of a HECM, but the details can be daunting so you do need to do your homework,” she says. Check out how she breaks it down for readers at the link below.