Throwing your home in reverse

StephenF at 00:58 2011-03-12 said:

This article has been written and re-written quite a few times...Without a doubt a Reverse Mortgage is not for everybody or every situation...but what loan is? There are a couple of items that should be explained further in order to remove the scare tactic aspect. 1) When the author sites unpaid taxes as a catalyst of foreclosure w/a reverse mortgage, they should point out that this happens with a "forward mortgage" as well. As a matter of fact I believe unpaid taxes are a catalyst for eviction in a home owned free & clear.

2) The bank charges interest - yes, however a reverse is a non-recourse loan and if the home is "underwater" the heirs are not responsible to repay the loan. If there is a profit to be made the heirs are entitled to such after all liens are satisfied. Permalink

achtung at 01:23 2011-03-12 said:

This article has been written and re-written quite a few times...Without a doubt a Reverse Mortgage is not for everybody or every situation...but what loan is? There are a couple of items that should be explained further in order to remove the scare tactic aspect. 1) When the author sites unpaid taxes as a catalyst of foreclosure w/a reverse mortgage, they should point out that this happens with a "forward mortgage" as well. As a matter of fact I believe unpaid taxes are a catalyst for eviction in a home owned free & clear.

2) The bank charges interest - yes, however a reverse is a non-recourse loan and if the home is "underwater" the heirs are not responsible to repay the loan. If there is a profit to be made the heirs are entitled to such after all liens are satisfied.

Great points. You are exactly right.

There seems to be a great effort to vilify lenders and lending programs regardless of how many are helped in the program. Permalink