Despite Regulations, Survivors Face Foreclosures After Reverse Mortgage Borrower’s Death

Despite Regulations, Survivors Face Foreclosures After Reverse Mortgage Borrower’s Death

There are a number of reasons someone might take out a reverse mortgage: to pay for prescriptions or medial care, to subsidize their daily living expenses or even to settle their fear of becoming a burden to their family. But the product that was designed to keep elderly consumers in their homes is now wreaking havoc on their surviving loved ones. [More]

Advocates: Now Is The Time To Reform Reverse Mortgages

Advocates: Now Is The Time To Reform Reverse Mortgages

A large chunk of the U.S. population is heading into what are supposed to be their golden years. But between financial hardship and shortsighted financial planning, many of these people are not able to retire comfortably, if at all. A reverse mortgage that allows homeowners who are at least 62 years old to borrow against the equity of their property may seem like a more appealing alternative to working into one’s 80s, but there are pitfalls involved — some of which can be fixed by a bit of reform. [More]

Thinking Of A Reverse Mortgage? Here Are Things To Watch Out For And Some Alternatives

Thinking Of A Reverse Mortgage? Here Are Things To Watch Out For And Some Alternatives

With a large group of Americans at or nearing retirement age — and with many of them having inadequate savings to last them through retirement — so-called “reverse mortgages,” wherein a lender converts the equity on a home into monthly payments to the homeowner, are being marketed as a financial cure-all to people wondering how they will be able to afford their golden years. But before anyone dives into the reverse mortgage pool, there are some thing worth pointing out. [More]

Four Charged In Alleged $2.5 Million Reverse Mortgage Racket

Four Charged In Alleged $2.5 Million Reverse Mortgage Racket

For their victims, the phone call sounded like salvation. Seniors, living on a fixed income and having trouble with the bills, they were glad to hear someone offering them a reverse mortgage that would allow them to turn the equity in their house into cash. But the four mortgage professionals charged with perpetrating a $2.5 million reverse mortgage fraud scheme are anything but angels. Their aftermath has left those who signed up with them impoverished and close to foreclosure. [More]

Wells Fargo Is Next Bank To Dump Reverse-Mortgages

Wells Fargo Is Next Bank To Dump Reverse-Mortgages

Wells Fargo is the next bank to announce that they are pulling out of the market of selling reverse-mortgages, a loan typically sold to to seniors that converts their home equity into a stream of monthly payments. The lender gets paid when the home is sold at the borrower’s death or when they move. Without reliably rising home values, it’s not a very profitable proposition for lenders. [More]