Is reverse mortgage a scam to take an elderly borrower's home?
- Coffee DrinkerLv 71 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.
- StephenWeinsteinLv 71 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).
- Elaine MLv 71 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.
- realtor.sailorLv 71 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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- Anonymous1 month ago
not sure what 'need' they fill, IF ANY .......................