It can not be stressed enough that you really need to understand what you are getting in to when you opt to take out a reverse home mortgage. These loans are really great for most borrowers if they are used properly but they can turn ugly really fast if you don't make good choices when utilizing the loan.
For example, there is a Q&A online today exploring the situation of an eighty five year old woman who is at risk of being evicted from her home because of failures she made with the reverse mortgage. No, she didn't get a bad reverse mortgage loan from a predatory lender. She just didn't seem to know what she was doing when she got the loan.
Apparently this woman has failed to make basic maintenance and assessment charges since getting the reverse mortgage loan. The home owner remains responsible for all of the fees associated with the home even after taking out a reverse mortgage. It is important for all borrowers to realize things like this so that they don't end up in a bad reverse mortgage situation. The reverse mortgage really is supposed to make your life easier, not harder!
Question of the Day: Why do so many seniors fail to understand the terms of their reverse mortgage loans?
