This Just In! Senior Homeowners Desperately Need HECM!
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Ever met a client so guarded, you could swear you were up against Fort Knox? It’s not always easy being vulnerable — particularly with strangers. Some might find it difficult to share or illuminate things that might be perceived as personal failures. This seems to be exceptionally true when it comes to financial matters. It’s just so personal. If you were raised with the whispered mantra “family’s business is NO ONE’s business,” you are familiar with the unspoken rule.
Seniors generally tend to hold in common the sanctity of privacy. There’s a deep sense of value placed on reservation as it relates to confidence and trust. Those sensitive to sharing personal details and business find it even more difficult to admit their financial weaknesses and/or troubles. Gaining access to a HECM borrower’s privileged information is sacred and only granted if earned.
When we think about our retirement, I’m sure we’d imagine it in different ways. While some would reject the idea of ever slowing down, others might welcome the anticipated exhale moment. No matter how we would envision our latter milestones, it’s doubtful we’d see ourselves lacking basic needs or losing the homes we’d broken our backs to acquire. Older adults are experiencing these difficult hardships nationwide...
The Senior Dilemma
The past year-and-a-half has been rough. We’ve endured distancing from loved ones while considering the risk of illness and battled to survive income losses while we weathered increased costs of living / rising inflation. We’ve all experienced overwhelm in one form or another — and the cumulation of multiple impacts at once has pushed too many over the edge!
The prolonged income struggle has bled into our senior community. The National Council on Aging reported in March 2021 that “over 15 million Americans aged 65+ are economically insecure — living at or below 200% of the federal poverty level (FPL) ($25,760 per year for a single person in 2021).” Add to that rising costs, and those who’ve barely survived are reduced to a sudden, dire need.
The same report found that , “[with] older adults who are above the poverty level, one major adverse life event can change today’s realities into tomorrow’s troubles.” Based on the grimly projected figures, it looks like “‘tomorrow’s troubles”’ have arrived.
According to a 2021 CFPB (Consumer Finance Protection Bureau) finding, “nearly 1 million homeowners age 65 and older are at risk of foreclosure.” Elderly folks are supposedly in danger of foreclosure and may not even realize it’s coming. Unfortunately, elderly in general tend to value deeply their independence — sometimes to a fault — and are commonly reluctant and least likely to seek help. While the psychology behind their inaction is understandable, the subsequent cost is far too great to ignore.
Seniors on the path to foreclosure aren’t always able to face where they’re headed. While certainly privy to their own financial shortfalls, many feel embarrassed by or powerless to their unfortunate circumstances. Sometimes the only escape is the false hope that ‘‘it’ll all work out in the end.” But when money strain forces pressure and reserves aren’t enough to fill the gap(s), wishful thinking not only proves unrealistic — it becomes financially dangerous.
All it takes is one unexpected expense to throw off a senior’s month-to-month finances. Living check-to-check while on a fixed income leaves little room for outside spending. Many retirees, or even those semi-retired, have significant home equity, yet struggle to make mortgage payments or keep up the property’s taxes and insurance costs. We haven’t even touched on additional costs associated with home maintenance and repairs.
Most retired couples count on their one to two social security checks to get by each month. Without an established retirement fund or access to alternate cash resources, the couple’s home equity asset may be all that’s left to rely on. Those who have access to senior clients, such as financial advisors or real estate agents, aren’t generally up to speed on or endorsing HECM — and their clients are suffering for it.
HECM: The Solution
What to do with an equity rich senior population unable to tangibly reach their own wealth? Well, lucky for them — and you — there’s Reverse Mortgage.
The same Covid that created widespread havoc is also credited for the equity growth across the country. The market surge created a unique advantage for 62+ year-old homeowners who’d give HECM a chance. The HECM misconception story is outdated, yet its falsities continue to echo. In fact, the old HECM character still stands between eligible borrowers and the evolved lending solution built to help them. A lot of potential HECM borrowers have the wrong idea about reverse mortgage — or even worse, no idea it exists at all.
Experience has shown us that most seniors in trouble would LOVE nothing more than to believe there’s a solution to their stability problem. If HECM really is what we claim it is — it would put any apprehensions to rest. Eligible borrowers need to know the HECM program is truly new and improved. Its blueprint was drawn and redrawn JUST for them.
It wouldn’t require much effort to steadily grow your referral network. Loan officers, real estate agents, financial advisors, etc. could partner with you to alleviate client fear. Working together, you can lead many seniors to retirement security and financial success. HECM has earned the trust of borrowers and related partners, but there’s more work to be done...
A Matter of Trust
Seniors are particularly sensitive to sharing their personal business — and for good reason! The unscrupulous predators actively prey upon the elderly, robbing them of their money and peace of mind. Gaining access to a senior borrower’s privileged information is sacred and should be earned. You can knock down the barriers, but you’ll need to show your trustworthiness and offer a sense of comfortability. Reach out and gain a situational awareness of your borrower’s circumstances by lending a listening ear. Once your borrower develops some trust they’ll lean in, granting you the opportunity to identify their need and get down to business.
Building Good Rapport with Potential HECM Borrowers:
Talk WITH Your Client – Not AT Them
ASK Questions – and Equally Important – LISTEN to Their Answers
Suspend / Resist Assumptions and Judgments
Stay Humble – You’ll Earn More HECM Business with Sincerity and Humility
Be Present – Senior Clients Should Feel Respected and Valued
Empathize with their Circumstances
Apply Active Listening / Engage Your Client – this is the magic bullet!
Expanding Your Reach
Carve out some time to begin building bridges with HECM referral partners. Earning the trust of valuable referral resources would not only save you time, but money, too. Earning favor with referral partners provides you a shoo-in advantage with their clients. Just ONE connection could increase your HECM business exponentially.
The value of HECM is within its set apart quality, it can suit any senior in any financial situation. It’s truly surprising how little folks know about it. With our team’s help, you can offer sincere care and borrower-friendly product education to potential clients. Presenting the “HECM Basics” is enough to evoke borrower interest. You can enjoy an easy process with NO overwhelm.
Discover HECM as your means to a fruitful end. It’s a lending solution that delivers on its promises to borrowers and boasts an unmatched earning opportunity for you!
To Learn More About the HECM Program or Schedule Your 1-on-1 Coaching Session, Reach Out to Us TODAY! HECM411@prmg.net
