[Leadbone1]

Originally Posted by Plinker

RM FORECLOSURES:

From the Naples News, 2019

15,000 Floridians at Risk of Foreclosure and Homelessness:

Earlier this year, an 83-year-old woman lost the home she has owned for more than 40 years.
She is one of thousands of senior Floridians facing the same outcome. But what sounds like a great deal can have serious pitfalls. Instead of providing a secure financial future for senior homeowners, nearly 15,000 older Floridians out of the 85,000 currently holding reverse mortgages are in danger of losing their homes in the coming years, according to data from the U.S. Department of Housing and Urban Development.
Already, 16,654 reverse mortgage holders have gone into foreclosure in the five years that ended December 2017, the most by far in the U.S. and nearly double the second-most — in California.
Reverse mortgages don’t get a person out of debt, they put people into more debt. It may solve an immediate cash-flow problem, but may not provide any long-term financial security. And homeowners whose circumstances change in ways they didn’t anticipate find themselves without their most valuable asset at an age when they need it most.

I had no idea it was this bad.
TV appears to be a mecca for these and similar sales pitches. A fee-only fiduciary financial planner can determine what is appropriate and will provide alternative options.

This is absolutely a BS post. After you do a reverse mortgage there’s only a couple ways you can lose your home. If you don’t pay your taxes and insurance on the house that is one way. Another way is if you do not make it your primary residence and live there at least six months out of the year. Otherwise you can stay in that home for the rest of your life. You also can sell the home anytime you want and pay back your loan. Any excess equity left over after your loan is paid back and still go to your family.