Everyone has played poker of some type, regular 5 card poker or the more popular hold 'em game. Two pair are better than one but a full house beats that two pair. You can beat a full house too but when you're holding the full house, you think you're in pretty good shape. Of course its a play on words but a full house in the world of reverse mortgages means a home that's full of equity and flush with cash. Cash is king and if you have cash you may not be experiencing the problems that others may be dealing with in this economy that Warren Buffett said had fallen off a cliff. Having cash is like having 4 aces in the poker game, there's not a whole lot that can beat it other than the Royal Flush. That's what it would be called if it ALL fell apart, the Royal Flush or Royal (insert not nice words here). Cash instead of having mortgage payments is a good thing. Cash instead of a deteriorating retirement portfolio is a good thing. Cash instead of putting the family vacation on a credit card is a good thing. CASH IS A GOOD THING and there is no disputing that.

We are hearing more and more folks talk about considering a reverse mortgage (HECM) to allay their cash flow concerns but are held back by the reputed high fees and wants of providing something for their heirs. They are sacrificing today, they sacrificed during the depression if they are old enough, they sacrificed their own time and wants so their kids had a better life than they did and they just need a good hand to be dealt to them. A reverse mortgage can put four aces in their hand when their other option is a pair of twos.

A reverse mortgage beats a Royal Flush

Attorneys that deal with Bankruptcy and Foreclosure are really beginning to see the strength and appeal the reverse mortgage has for those at risk of losing homes and valuable credit. Elder law attorneys and financial planning types are up against the pressure that the market has put on their clients portfolios and are just now starting to lean toward the reverse mortgage as a helpful tool for providing the much needed cash flow. Its not a magic pill nor should be only be considered as a last resort because there's often a great deal of emotional and financial damage done before most step towards a safe and sensible method to stave off loss of income, portfolio values or increasing debts.

Recent changes have seen the reverse mortgage being used to help folks purchase homes where credit and income are not considered. The nationwide lending limit was increased to $625,500 and is immediately helping those with higher mortgages pay those off and free up the cash flow that was used to make those payments. Positive changes, all meant to help, not hinder and all have been blessed and insured by HUD. The Saver HECM product cut the up front Mortgage Insurance Premium from 2% of a home's value to .01%. On a $200,000 home that's difference of $3980 in closing cost fees. So someone is looking to keep the costs lower and the benefits greater.

Hundreds of thousands of homeowners have been helped in the past few years by obtaining a reverse mortgage to help increase their cash flow. That's a winning hand older folks are willing to bet on.