Reverse Mortgages: Proceed With Caution
http://thekojonnamdishow.org/shows/2011-10-06/reverse-mortgages-proceed-caution
Reverse mortgages help many older Americans tap into home equity to pay for living expenses or healthcare needs. But as they've become more popular, they've attracted more scrutiny and more fine print. And, with home prices plummeting and federal loan rules still evolving, some seniors have lost their homes or found themselves forced into default and foreclosure. Kojo explores the pros and cons of reverse mortgages, and how to avoid the financial pitfalls that may come with them.
Guests
Nina Simon
Director of Litigation, Center for Responsible Lending
Jean Constantine-Davis
Senior Attorney, AARP Foundation
Michael McCully
Partner, New View Advisors
Comments
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WHAT HAPPENS TO A REVERSE MORTGAGE THAT WAS ESTABLISHED FIVE YEARS AGO FOR A HOME WORTH $1,000,000, NOW THAT THE HOUSING BOOMM IS OVER
If it is a government insured Reverse Mortgage (HECM RM) you get to stay in the home no matter what is owed on the RM. If you did a HECM RM five years ago the maximum FHA limit was probably only $417,000 so there should still be a lot of equity left in the home.
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