Mary Had A Home Worth 6 Apples....And A Reverse Mortgage
The Realities of a Reverse Mortgage the Salesman Won’t Disclose
Mary has a home worth 6 apples and is very, very hungry.
Farmer Jim gives Mary 3 apples (half the value of her home). If Mary eats all of her apples and passes away, farmer Jim gets her home because Mary now owes farmer Jim far more than the house is worth.
When Mary passes away her home is now worth 8 apples but due to fees and interest she now owes farmer Jim 10 apples. Mary had hoped to leave her home to her only heir, a sweet little lamb. Unfortunately, if you recall, Mary was very, very hungry and she owed more apples than the home was worth.
Farmer Jim sells the home for 8 apples and then hits the townsfolk up for the remaining 2 apples.
Oh, I almost forgot. Before sealing the deal, farmer Bruce (oops, I mean Jim) invites Mary over for a free, fried-chicken dinner.
Introducing the cast:
The trusting yet vulnerable Villager is played by Mary
Your substantial home equity is played by the apple
Your heirs are played by the sweet little lamb (really gonna miss you!)
The burdened taxpayers are played by the townsfolk.
The sketchy RM salesman and lender is played by farmer Jim
Oh and the fried-chicken dinner was anything but free. Mary paid for it.
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