This is a must read article for anyone considering a reverse mortgage.
While a reverse can indeed add some needed cash to your bank account the risks may eventually outweigh the benefit, especially if one doesn’t understand or consider all the details.
Here’s an excerpt form ABC news with a link to the complete article below.
Today, the government is warning: Reverse mortgages are not free money.
Prescott Cole, senior staff attorney for California Advocates for Nursing Home Reform, says seniors are a target because many have money saved, are often isolated and at times have “cognitive impairments” reducing their ability to make rational decisions.
“They’re not being told about the downsides,” Cole said. “When we hear about reverse mortgages, we’re hearing the good things … that these are loans that don’t have to be paid back either until the senior dies or permanently moves out of the home … they’re told, nothing to worry about.”