Portfolio magazine included their Trouble Reverse? story in their top 5 stories email that I receive every morning. While the title of the story hints that the article would be negative, the overall tone of the article is pretty positive.
This is the first article from a big publisher whose main focus isn’t on the costs associated with a reverse mortgage but the solutions the product can provide. One example has to do with John Thompson, C.E.O. of Horizon Resources Group in Atlanta, a consultancy, and his university administrator wife, Dr. Patricia Sager. Using proceeds from a reverse mortgage on their primary residence as a line of credit, Thompson says he wants “to provide for unforeseen emergencies and opportunities,” while expanding his company into England.
Portfolio points out that with the credit crunch continuing, the leveraged-to-the-hilt homeowners are seeking ways to raise cash without selling their houses during a slump. If the borrowers are leveraged to the hilt a reverse mortgage might not be an option but maybe something like the REX product would work.
The article also points out that as houses continue to linger on the market for more than a year, many homeowners aren’t willing to wait to sell until prices bounce back and are looking at reverse mortgages as an interim solution, allowing them time to hold onto their homes until home values adjust.
While some of use might not see a reverse mortgage as the best solution for some of these cases it’s nice to read something from the mainstream media that doesn’t bash reverse mortgages.