Anonymous asked in Business & FinanceRenting & Real Estate · 1 month ago

Is reverse mortgage a scam to take an elderly borrower's home?

5 Answers

  • 1 month ago

    they mortgages are not scams.

    Like all financial products, there are some scummy sales people who will try to sell a product to someone who isn't a good fit for the program just so they (the salesman) can get a commission.

    So there are a few examples of people who took reverse mortgages because they were scammed/tricked/sold on them by a dishonest salesman but that doesn't mean the product itself is a scam.

  • 1 month ago

    No.  It's a way for an elderly person to get money and keep their house as long as they live in it (until the move or die).

  • 1 month ago

    No. The loan has to be paid back at some point, but it isn't on a regular schedule like most loans. That's the advantage.  It's not free money.

  • 1 month ago

    The lender can't take the home.  The loan is due if they move out.  If they both die then the heirs, if any, decide if they want the house and if so,they must obtain their own financing.  If the heirs don't want the home or there aren't any heirs the bank gets the property back, through foreclosure.

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  • Anonymous
    1 month ago

    not sure what 'need' they fill, IF ANY .......................

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