Know the Pitfalls of Reverse Mortgages
By · April 11, 2014
Your parents took out a reverse mortgage so that they could stay in their home. Maybe they need help with medical bills. It may sound like a good idea because there is a lot of the equity is in the house since they have owned it for so many years. But maybe not.
The cost of these reverse mortgages sometimes makes it very expensive for both the homeowner and for the heirs. The cost of the reverse mortgage can be thousands of dollars paid up front in order to get the loan. Then when the homeowner dies, the heirs try to take over and it appears their rights are being denied and lenders are foreclosing.
Make sure you or your parents know EXACTLY what they are getting themselves into before agreeing to these mortgages.
For more information, check out this article with the NY Times: