``Searching online for information about reverse mortgages, I came across article after article about how reverse mortgages somehow became a financial nightmare for different seniors around the country. I was shocked to read something like that as I've been researching and writing about reverse mortgages lately, and I couldn't understand how they could possibly turn into any sort of "nightmare."

But, imagine this, as reported in the Miami Herald on July 12, 2013...

A reverse mortgage with an interest rate of 9.95 percent... plus a clause granting the lender a 50 percent share of any increases in the value of the home, plus an additional 2 percent for something called a "maturity fee" to increase the lender's payout even more.

And, as if those terms weren't egregious enough, on top of that the mortgage required the borrower to purchase a $33,000 annuity that would be added to the principal balance and that would both accrue compounding interest and reduce the amount that the lender would pay out to the homeowner in the future.''

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