Thursday, November 21, 2013

More in the Ongoing Corporate Takeover of America

There's no shortage of t.v. ad people that bug the crap out of me. I could write a list right now, as a matter of fact - the horrendously annoying "Connie and Jack" (Consumer Cellular), "Flo" (Progressive Insurance), all the folks who've fallen and can't get up, obnoxious grungy hipster 20-somethings who scarf greasy hamburgers like starving jackals - well, you get the picture. But while these characters may be annoying, they're basically harmless.

Unlike soul-less cretins like Fred Thompson, who is the main shill for AAG's reverse mortgage scheme. What the hell is up with the nonstop propaganda blitz to convince the elderly to borrow against their homes on a delayed basis? The ads make it sound like a reverse mortgage is a great gift to seniors, and the answer to their cash shortages. All thanks to the kind, benevolent mega-corp, right? Yeah.....right. When was the last time a large corporation put major advertising dollars behind a product that didn't completely and substantially benefit themselves? Exactly.

What I'm wondering is, what are these corps up to, aside from unrestricted profiteering?  Why are they trying to gain so many properties? Fred Thompson says that seniors who take out a reverse mortgage "absolutely retain full ownership of their homes" (until they die or leave).

 But a piece on Alternet says this:  "Here's how a reverse mortgage works. If you're over 62, seniors can access the equity in their home - and they do not have to make any interest or principal payments for as long as they live in the house. They can get a lump sum payout or get cash in monthly installments. That's the good news. Now, here's the bad news.
• In a reverse mortgage, just like a regular mortgage, borrowers have to pay points, origination fees, etc up front. So, getting the money is expensive. Which will be a hardship on senior citizens who are already cash strapped.
• The interest rate on a reverse mortgage is most often higher than that of a conventional mortgage. Plus, it's compounded monthly. Meaning, every month -- since seniors are not paying down the principal -- they are paying interest on more and more money.
• If if becomes necessary for an elderly person to move into an assisted living facility...the loan must be paid back, in full, first. This could leave the borrower with no money what-so-ever -- if they lived longer than they budgeted for -- and an inability to afford the extra care they need. It also shifts the burden of caring to children... or the state."

CNN Money points out that the loan origination fee on  a reverse mortgage can easily top $7,000.00, depending the the value of the home.

The homeowner is still responsible for paying property taxes, paying homeowner’s insurance, and also maintaining and repairing the home. If the homeowner fails to do any of those things, the bank can call the loan due in full immediately - and take the home if the homeowner can't pay it all back on the spot. Furthermore, Reverse mortgages’ have variable rates that move up and down with the market conditions. And if the homeowner dies, the reverse mortgage must be paid back in full before an heir can claim it. If it isn't, the bank gets the house.

So that's why I think Fred Thompson and any other "celebrity" who hawks these schemes to the vulnerable elderly are satan's little helpers. Hopefully they will join the banksters in the 9th circle of hell!

Cleary, reverse mortgages are another profitable con game from the bankster set - and a way of acquiring more property to boot. Combine that with the scary trend of investor groups buying up many of the single-family homes now on the market, and what do you get? That's right, you get a glorious rebirth of the Feudal Society concept. The elite own everything, and the rest of us serfs have to scrape and toil to be able to survive, and pay the outrageous rents determined by the ultra-wealthy.

Aside from that, qualified individual buyers, even those with cash, are actually being shut out of the market.

And as with most large and impactful things going on right now, most people aren't paying much attention to this unfortunate trend. As the Chicago Tribune asks, will this end well?


Blogger D. said...

The house is in serious need of repairs, but Parent is very firm on not taking out a reverse mortgage. Wisely.

11:25 PM  
Blogger Father Tyme said...

Reverse mortgages are a scam to end all scams. Pick on hte seniors who most times aren't savvy enough to check things out. In some states if the loan can't be repaid and everything is taken from the seniors, a thing called the "Estate Recovery Act" kicks in and the children can be held accountable. Now, that's not in all states but probably enough to make it worth while for the leeches to do anything. And if that fails...well, there's good old Bush/Geithner/Bernanke/Obama to bail them out. It's a win win for any bank.

By the way, about commercials. Did you ever notice there's no one over 30 who drinks beer? And with the increased death rate of young killing themselves and others through excessive speeding (and drinking), did you ever wonder why car commercials emphasize just how fast a car can go...but don't try this crazy driving at home, kids. These are professional drivers.

And to top things off, many commercial placements are setups. I've seen lots of commercials for beer followed by car ads that show cars (on empty streets) speeding...and vice versa. A subtle message? Yeah. Right!

Corporations and their advertisers...the real American terrorists.

6:16 AM  
Blogger Anna Van Z said...

D, that's good! I believe as FT said that it's a gigantic scam, aimed at some of our most vulnerable citizens.

3:08 PM  

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