According to the National Reverse Mortgage Lenders Association (NRMLA), at the end of 2010 senior citizens held home equity valued in total at $3.3 trillion, and reverse mortgages are still playing an important role in senior support despite horror stories about plummeting home values and lost retirements[1]. That $3.3 trillion is down 18 percent from peak levels, but the total population of homeowners has lost 31 percent of their equity and seniors are still able to benefit from that equity through reverse mortgages even if they cannot sell their homes[2]. In general, senior citizens have much lower mortgage debt levels relative to the rest of the population.
In fact, many experts expect that the number of reverse mortgages in existence is likely to rise in coming years due to baby boomers becoming eligible and to the difficult housing market, which makes it hard to sell homes. Many older citizens may opt to remain in their existing homes rather than downsizing as they might have decided to do a few years ago. Some people believe reverse mortgages are lifesavers for seniors, while others argue that the transaction takes advantage of a bad situation. Do you think that climbing numbers of reverse mortgages could be good for the housing market? For the seniors who hold these mortgages?
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[1] http://nationalmortgageprofessional.com/news25015/study-finds-reverse-mortgage-market-performing-well-despite-tough-us-economy?
[2] http://dailynewspulse.com/reverse-mortgage-loans-are-on-the-rise-baby-boomers-coming-of-age/2223647/
May 8th, 2011 at 11:53 AM
yes and neye ?
May 8th, 2011 at 3:43 PM
Reverse Mortgages are the perfect vehicle for adults that have no heirs or with the type of successful offspring that do not need, may not be able to afford the taxes on real estate in an estate. The fact is, this is such a sound program I fully expect a move to Privatize it very soon. Especially with the demise of Fannie and Freddie to the perils of Gramm-Leach, as part of the continuing fraud that replaced the Banking act of ’33, Glass-Segal!