Parent Care Says Informed Elderly Can Avoid Mortgage Scams Thru the Safe Harbor of Reverse Mortgages

Share Article

Confronted by rising costs that need to be met on fixed incomes, many elderly are seeking loans using their homes as collateral. Many have become unwitting prey to scam artists and put their most valued asset at risk. Reverse mortgages from legitimate sources may be a good option for many but an expert urges careful consideration before signing on the dotted line.

prime lending fiasco has overwhelmed many first time homebuyers. Unfortunately, many senior citizens find themselves in the very eye of the storm. Unlike first time buyers who stand to lose down payments but have hopes of eventual recovery, seniors may lose homes in which they've invested all their working lives and have little chance of recovery.

With many seniors being confronted with the need for loans or additional monthly income, caregivers may wish to suggest that they consider a reverse mortgage - a way to receive the equity from a home without making any more payments. While the deals offered by scam artists may sound similar to legitimate reverse mortgages, it is important for seniors and their caregivers to educate themselves about these unusual financial instruments. An expert urges caregivers and their parents to explore all alternatives before signing on the dotted line because reverse mortgages may not be the best option for everyone.

Financial expert Debra Morrison shares insights on a topic many may be considering but without a full understanding of the implications of acquiring and using this financial tool. In this month's feature article on Parent Care she cautions that trying to predict whether our parents will be able to stay in their homes long enough to enjoy the benefits of a reverse mortgage might be an anxiety-producing and elusive variable. Future changes to parents' health could wreak havoc with a seemingly well thought out decision. She urges that caregivers recommend a reverse mortgage only with the assistance of a qualified professional, after the tradeoffs of a parent's unique situation are well understood and after assuring yourself that the lender is legitimate.

Featured on the Parent Care website throughout September, Morrison's article explains the various types of reverse mortgages, their benefits and potential limitations. She also provides food for thought about who, and who should not, consider them. Significant difference in parents' ages, the possibility of moving into assisted living or moving parents into progeny's homes are major considerations. Morrison urges readers to think and rethink the wisdom of taking a reverse mortgage and understand state and federal regulations that govern them.

A Certified Financial Planner, Morrison is responsible for client relationships for Capital Financial Advisors, a San Diego based fee-only wealth management firm. She has provided commentary in diverse media from CNN, the Wall Street Journal and America Online.

"Today's constantly shifting financials sands make Debra Morrison's article timely and especially useful for caregivers" stated Parent Care CEO William Gillis. "Her stature, experience and knowledge are invaluable to caregivers and their elderly parents."

About Parent Care, Inc.
Parent Care is the leading information source for the country's seven million long distance eldercare providers and their employers. Parent Care, The Parent Care Report and The Parent Care Channel are registered trademarks of the firm.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

WILLIAM GILLIS
Visit website