Reverse Fortunes is now Reverse Focus

Reverse Focus

Reverse Focus

As we approach our 5th anniversary this November, the team at Reverse Fortunes is changing our name to Reverse Focus.

We have been honored to serve so many of our fellow Reverse Mortgage Industry professionals with industry insight, tools and training to help you in your success.

With this milestone, we take on a new name to reflect a renewed commitment – and focus! – on being an even more powerful support system and leader in the reverse mortgage industry.

Thank you for being a part of our efforts and welcome to Reverse Focus!

Road block: Lack of funds for HUD Counseling: Industry Leader Update

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Lack of funding for HUD counseling creating a road block for those who need it the most

As we enjoyed our weekend October 1st came and went marking the beginning of the fiscal year 2012 and more importantly the date when funding from the government for mandated HUD counseling stops. This is creating delays in scheduling counseling and even worse may prevent lower income homeowners without the money for upfront counseling fees from moving forward. Either way you slice it, this is hurting the potential borrower the worst.

Lack Of Funds For HUD Counseling From Congress
Ironically when the government created the HECM (Home Equity Conversion Mortgage) program, counseling was a built in requirement. Why does congress fail to fund a requirement for a federal program they created in the first place? Politics aside it appears we may have some hope of seeing funds restored at some level in the future.

What are your thoughts? How would you propose HUD counseling be funded outside of the government. Leave your comments below.

 

The truth about relocating: Marketing to the mature homeowner part 4

Senior Moving“When I retire I plan on moving to a smaller home.”
“When I retire I’ll relocate to be closer to the kids.”

Although people may make similar statements in middle age, the reality is quite different. One study found the general move rate for seniors aged 55-64 to be just 7.4 percent per year. Clearly, while the idea of relocating to a senior-centric area (such as Florida) or to be nearer adult children might appeal, the pull of the home where they’ve raised those children, built a life, entertained their friends, and created a lifetime of memories is often stronger.

This is a boon for reverse mortgage professionals, who can help people avoid having to sell their memories (i.e., their home) in order to generate sufficient cash flow for their golden years.

There are emotional and logistical issues to moving and/or downsizing, as well as financial considerations. For some people, moving makes a lot of sense: the house is just too big, or their health isn’t up to caring for it. For the vast majority, however, aging in place (see our series on mature homeowners) is the keynote for savvy seniors, thus making them ideal reverse mortgage leads.

To better understand your target market, consider that leaving their long-term homestead means:

  • Emotional upheaval. Their house holds a lifetime of memories, as does the neighborhood. They’ve built relationships with everyone from the grocer to the librarian to their auto mechanic; it can be as difficult to let go of these peripheral connections as it is to say goodbye to cherished friends.
  • Relinquishing friendships. It’s harder to meet and form new friendships as we age, partly because we don’t have the built-in people access we did when we were younger (through school, work, civic and community activities, health clubs, etc). Some seniors may have decades-long friendships in the town where they’ve lived all their adult lives; losing these friends at this life stage could precipitate depression.
  • Logistics. Not only does relocation — especially to a smaller dwelling — necessitate selling, storing, or giving away precious possessions (a huge task in itself), there’s also the matter of adjusting to a whole new area, and choosing a new doctor, dentist, hairdresser, grocery store, etc. Many people can find these tasks daunting, depending on their age, mobility and overall health.

Thus, in marketing reverse mortgages to the mature homeowner, it’s wise to recognize and acknowledge their choice to stay put, for all these reasons and more. Your reverse mortgage prospects will feel validated in their decision — especially knowing that the equity in their beloved home can help support them as they grow older.