There is so often only bad news to hear about reverse mortgage loans. In fact, the posts on the blog this week highlight the fact that there are a lot of problems in the reverse mortgage industry despite the fact that many professionals are working to improve the situation. However, that doesn't mean that all of the news is bad. There are plenty of times when the reverse mortgage home loan works the way that it's supposed to. The Broward Times recently reported on just such a case.
The report is about a woman who is pushing eighty years old and is struggling financially. She has 5 children, 15 grandchildren and 30 great grandchildren. She loves when they can come visit her in the old family home. But she wasn't able to afford the insurance and taxes on that home and she wasn't able to keep it in a good state of repair. The reverse mortgage loan helped. She gets a steady income from the reverse mortgage which lets her keep the house and fix it up to make it safer and more comfortable to live in.
When this woman moves or passes away, her children can decide whether or not they want to pay what's left on the reverse mortgage loan. (Let's say that over the years, this woman accesses $20,000 in cash on the home loan. This is the amount the family would owe if they want the house.) In the meantime, Mom/Grandma gets to live comfortably in the house. Everyone basically benefits.
Question of the Day: Can you share a reverse mortgage success story?
