More in the Ongoing Corporate Takeover of America
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?