Affluent Using Reverse Mortgages
to Take Advantage of Distressed Property Values
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?
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