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Advice on Selling Reverse Mortgages

Hi, I sell reverse Mortgages. I also want to educate seniors of potential scams. Any ideas on how I can do both?

Hi, I sell reverse Mortgages. I also want to educate seniors as to the potential dangers of Reverse Mortgage scams. I'm feeling that to do both on a given presentation could hurt the Reverse Mortgage industry in that if the senior did not enroll he might spell out he dangers of a Reverse Mortgage at say a senior center scareing other seniors and hurting my future business. Any ideas regarding how I can do both?

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Bill's Answer
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From my understanding, one of the most prevalent scams associated with reverse mortgages is companies selling information about reverse mortgage programs, the same information which can be obtained for free by contacting the Department of Housing and Urban Development. If you would like to present reverse mortgage programs while simultaneously warning the elderly about the dangers of reverse mortgage fraud, I think you should first tell anyone to whom you are speaking that the information you are providing is free, and that anyone trying to charge them just to access information about reverse mortgage programs is likely trying to scam them. You should make clear the fact that while the information you are providing is free, if a homeowner decides to take out a reverse mortgage, they may be charged a fee by the lender. I would also encourage you to clearly outline all fees charged by your company for reverse mortgages, and for what the fees are being charged, so as not to blur the line between the scams that you are warning them against and the valuable products that you are trying to sell.

Reverse mortgages have become increasingly popular in recent years, and from my experience many seniors, especially those seeking out information about a reverse mortgage, are fairly well informed about how reverse mortgages work. Also, the popularity of reverse mortgages may make potential customers more comfortable with the idea of taking out a reverse mortgage, as they may already know someone who has benefited from a reverse mortgage loan. Groups like AARP have made significant effort to educate seniors about the benefits and potential drawbacks of reverse mortgages, so you may find that much of your work has already been done for you.

The best advice that I can offer you is to be honest and straightforward in dealing with potential customers. The more knowledgeable you are about the product, the better you will be able to educate the client and the more trustworthy you will appear. It is true that educating consumers about reverse mortgage scams may scare away a few customers, but I think you will find that your discussing the issue will make most customers feel more comfortable in working with you. If you find that your efforts to educate consumers are hurting your ability to sell your product, you can always rewrite your presentation to make it more attractive to your potential customers.

For more information about reverse mortgages, I encourage you to visit the Bills.com Reverse Mortgage Information page.

I wish you the best of luck, and hope that the information I have provided helps you Find. Learn. Save.

Best,

Bill

www.Bills.com

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8 Comments

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  • BA
    Sep, 2010
    Bill
    I recommend you contact your state's regulatory agency that oversees the real estate and mortgage industry.
    0 Votes

    • SM
      Jul, 2011
      Susan
      Jackson, MS
      Is it possible for a private person to fund a reverse mortgage? I have a family member who is disabled with limited resources. I'd like to use money from a self-directed IRA to give him a reverse mortgage note under better terms than seem to be available from businesses. That way we can be certain the house stays in the family. Is this possible?
      0 Votes

    • BA
      Jul, 2011
      Bill
      Consult with both an attorney and a tax professional. The tax pro will inform you of the tax implications of using your retirement accounts. The attorney will advise you how to draw up a contract that protects your interests.

      I see no reason why you can't lend money and have the house's equity used as security, but only an attorney can give you legal advice and explain whether your goal can be accomplished.
      0 Votes

  • GJ
    Sep, 2010
    Gary
    I would like to sell reverse mortgages here in PA, what are the requirements and how do I get started?
    0 Votes

  • BA
    Nov, 2009
    Bill
    People wishing to sell real estate or real estate-related loans in California must have a real estate broker license. California does not issue a separate "mortgage broker" license. See California Business and Professions Code Sections 10130 and 10131. See also the US HUD document Top Ten Things to Know if You're Interested in a Reverse Mortgage to start learning about reverse mortgages.
    0 Votes

  • LC
    Nov, 2009
    lucas
    I'd like to sell reverse mortgages in California. Please tell me exactly what license I need and what is the opportunity to make honest money.. I love elderly people and volunteer in nursing homes. I;d like to make some money too.. thanks
    0 Votes

  • BA
    Apr, 2009
    Bill
    Thanks Anita – it sounds like your first step would be to find a reverse mortgage lender whose product you may be able to offer to homeowners eligible for reverse mortgages. However, we suggest you contact the government agency under which you are licensed. This is not a question we feel confident (or at liberty) to answer.
    0 Votes

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