The long-running animated television series “Family Guy” had fun with reverse mortgages in general and the American Advisors Group advertisements featuring Tom Selleck in particular on its latest episode that aired Sunday night on Fox.
In the episode, the perennially bumbling Peter Griffin is trying to figure out how to tame his financial problems when he views a television commercial where a well-known actor proposes a way to solve personal money woes.
“Hi, I’m Tom Selleck,” said a parody of the “Blue Bloods” star in the commercial. “Ask your nurse to turn down your breathing machine for a minute so I can tell you how a reverse mortgage from Hey Alright Reverse Mortgages – or HARM – can help you.”
Although being too young to qualify, Peter somehow manages to secure a reverse mortgage – but winds up with a possible foreclosure on his home due to hidden complexities in the “HARM” product.
Although “Family Guy” has recruited scores of notable celebrities as voice performers, Selleck did not participate in the episode. Instead, the show’s closing credits acknowledged another actor voiced Selleck while adding the real Selleck “continues to sell reverse mortgages to probably your grandparents.”
Photo courtesy of Fox
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This episode, on a show that is viewed by millions, can manage to obliterate 15 years, or more, of work that FHA/HUD and thousands in the mortgage industry have done to reduce the myths and counter this kind of lack of education by the media, financial industry partners and the public in general. Tom Selleck should be livid, Reverse Mortgage borrowers should be livid ???? and those of us who spend hours each week to educate, dispel myths and show Baby Boomers how the program TRULY works in their benefit (especially in a market like the one we have now). The public, and especially retirees, should be embarrassed. It’s ok to make fun, but to go one step further and continue to spout misinformation or get folks scared to pursue what can be a lifesaver for them, is totally uncalled for. Please write to FOX https://tvmeg.com/index.php/2021/03/14/contact/
The fees to obtain the mortgages are outrageous. Some of the not well published factors like the necessity of full insurance coverage, the inability to challenge the appraisal for the initial value, etc. are not published well and other factors give some downside to this type of financing. The banks love them, how can they loose?
You may be doing that, and I applaud you. But there are many seniors that are not getting that education you provide. My Aunt who was 94 at the time thought she was getting a reverse mortgage and actually had her home pledged for the debt and the company tried to foreclose on her. There is no reason that anyone should be selling any financial instrument to any senior without having a representative, family member or an attorney assisting before they sign. you don’t have the ability or maybe not the desire to find out if they have the mental capacity to make that decision. Is there any mental deficit or dementia present. All seniors prefer to stay in their home. I see that show as a public service announcement. All brokers are not equal. By the way I paid off my Aunts debt and they would not negotiate one red cent off the amount owed.
Reverse Mortgages require a HUD Consultant to go over the details of the loan with the home owner. The Consultant must issue a Certificate of Counseling prior to the home owner applying for a Reverse Mortgage. Lenders cannot move forward without the senior being counseled.
I bought a house as a short sale that had a reverse mortgage on it. The owners had passed, and the estate had to unload it fast or suffer a major hit because the bank was really pushing to foreclose on it. I mean, for me it worked out well because I got a house for three fourths of what the appraised value had been, but if it hadn’t gone through the heirs would have lost a major chunk of the inheritable estate it sounded like. Tom says they’re not trying to take the home, but that’s sure not how it looked to me from this situation.
Daryt Frank. Upon death, the lender finds out from the heirs what they plan to do with the home – sell or refinance. The lender gives them 6 months for that process – a lot of time in my book.
Then if that time is not enough, the heirs can request and get a 6 month extension. In normal circumstances, a home with a reverse mortgage should not have to be ‘unloaded fast’. There is time to get a good price at market for the heirs. Capeesh?
As a seasoned agent that have worked with reversed mortgaged estate heirs, I think that many myths indeed project the option as scandalous. However, I found it to be a wonderful opportunity for seniors who may need the extra income. Maybe a more profitable solution might would be for them to sell their home and purchase one less expensive for cash and pocket the remaining funds. However, that may prove to be far more problematic in most case. If they are able to get a reverse mortgage and live comfortable, with less stress in their senior years, I am all for that. In several situations, the bank sent a letter that granted the heirs the option to surrender the deed in lieu of foreclosure. We notified them that we would be listing the property for sale and we did, at market value. The homes were sold, debts settled and the remaining funds went to the estate to be divided among heirs. The only down side that I see is that the heirs received less inheritance than maybe they hoped. But they seemed okay with that because their loved one lived their senior years more comfortable because of the reverse mortgage. So if truth be told, it really does come down to doing what is best for the seniors quality of life than the heirs. I am a huge fan of making the seniors as comfortable as possible and if reverse mortgage does that, great. It is my hope, however, that anyone choosing that option will manage their reversed mortgage funds wisely. FYI, I had a widowed gentleman take a reverse mortgage out on his home and use the funds to help his son purchase a larger home that had an in-law suite, which allowed him to visit and stay more frequently.