Homeowners, approach ‘reverse mortgage’ with caution

Recently I saw a television commercial hosted by Robert Wagner, a joke itself, praising the wonders of a reverse mortgage. In 1995 my mother-in-law decided it was the best thing to put her home in such a plan. It would give her a little income and a feeling of independence. She was always concerned about her family and felt this was the answer. The mortgage company changed hands a couple of times, but she was always told everything about the mortgage would remain the same.

After her death the circus began. We had a difficult time contacting the company and when we did we were informed we could buy the house back for a price well above what we could afford if we had chosen to purchase it. We had to hire a lawyer, but have received very little help. The house became a U.S. Department of Housing and Urban Development house and sits empty. We cannot settle her estate because the mortgage company will not release it.

Those thinking about investing in a reverse mortgage should deal with a reputable company or be prepared to wait, wait, wait.

Found here.

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One Response to “Homeowners, approach ‘reverse mortgage’ with caution”

  1. Robert Huxley Says:
    April 9th, 2007 at 10:30 am

    This person is leaving out several key facts. Mortgages frequently change hands; the terms of the contracts do not. Why did they have a difficult time contacting the company – was the telephone number just not readily available? So they had to dig for it in their mother-in-laws paperwork or make several calls. Their being able to afford a home and market rate are two different things. They received little help from the lawyer because everything was on the up and up. The mortgage company and HUD need to sell the house to recoup the money they had given the mother-in-law (which was thousands of dollars). This person acts as if the home is theirs; it was the basis for a non-recourse loan which certainly must have benefitted the mother-in-law. Sounds as if the son or daughter-in-law needs a little sophistication and/or a little education.

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