Some of the same U.S. lenders that helped drive the real estate boom with loans to home buyers who couldn’t afford the payments are now targeting seniors, the center said. Brokers, who are given financial incentives to sell the loans, may be making misleading claims to potential customers, according to a report titled "Subprime Revisited,’’ that was released today by the Boston-based NCLC.
It sure looks like tapped-out Baby Boomers who have no liquid savings for retirement are easy pickings for reverse mortgages. It will only take one big hiccup in the bond market to send rates skyrocketing and home values plunging, and then these seniors and their lenders will be wiped out.
No way would I go for this if I were a homeowner. I'll take the slow and steady approach to wealth building, thank you very much, and that requires little to no debt.
