Financial Crisis and Its Impact on Reverse Mortgages

reverse-mortgage-home-equityIt’s no secret that the financial crisis has taken an extreme toll on the real estate market and overall home values. The total loss of home equity throughout the U.S. is yet to be tallied. But, rest assured it is in the Trillions of dollars.

Evaporated home equity restricts every part of the economy. For folks in or near retirement the toll has been monumental. So much so, that many people fear they will never be able to retire and some all ready retired are finding the need to return to the workforce, (if in fact they can even get hired in today’s economy.)

Some older people that have free and clear homes or very small mortgage balances, are able to take advantage of a reverse mortgage if they need supplemental income. But even then, the amount of money they can access is greatly diminished due to the loss in home values.

This article published by Inman News provides detailed insight into the devastation caused by the financial meltdown as well as a history of the evolution of the Reverse Mortgage in the U.S. It’s an interesting read, check it out.

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